Diamond Offshore Receives LOI for Ocean Rover

Diamond Offshore has received a letter of intent from Murphy Sabah Oil Company Ltd. for the semisubmersible Ocean Rover to work offshore Malaysia for approximately 120 days following completion of its upgrade.

Subject to the negotiation and execution of a definitive agreement, the Ocean Rover is expected to commence operations in Malaysia following delivery from the shipyard. The drilling program consists of three wells with a minimum expected duration of 120 days during which time the rig is expected to generate revenues, depending upon water depth, of approximately $13.4 million to $14.9 million.

The Ocean Rover is currently undergoing an upgrade to fifth-generation capabilities, including the ability for self-contained mooring operations in up to 7,000 feet of water. The work is taking place in a Singapore shipyard. The upgrade is expected to be completed and the rig delivered to the Company in the third quarter of this year.