Sedco Energy Begins Drilling Offshore Brazil

Transocean Sedco Forex Inc. announced today that its newly constructed ultra-deepwater semisubmersible drilling rig Sedco Energy has completed acceptance testing and commenced a 42-month contract with Texaco in Brazil. Total revenues which could be generated over the duration of the 42-month contract approximate $216 million.

The Sedco Energy, capable of operating in water depths of up to 7,500 feet, is one of three Sedco Express-class semisubmersible rigs added to the Transocean Sedco Forex fleet of high specification floaters during 2001. In addition to the Sedco Energy's contract with Texaco, the Cajun Express was delivered to Marathon Oil Company in April 2001 and is currently operating in the U.S. Gulf of Mexico under an 18-month contract. The Sedco Express is currently located in the Canary Islands, having completed its final testing and commissioning and is expected to remain there while efforts continue to secure a contract for the unit. All three rigs possess the unique "Tri-Act" derrick and automated, dual pipe-handling and racking machines designed to reduce total well construction time by up to 25%.

The Sedco Energy has commenced drilling operations on Texaco's Frade Field in the Campos Basin.