Transocean Sedco Forex Inc. (NYSE:RIG) said it has set another world record for ultra-deepwater drilling when the company’s Discoverer Spirit drillship spudded an appraisal well in 9,727 feet of water in the Gulf of Mexico for Unocal Corporation (NYSE:UCL).

Transocean Sedco Forex Inc. (NYSE:RIG) today announced that it has been awarded contracts for two high-specification floating drilling rigs and has received a contract extension on a third high-specification floating drilling rig.

The semisubmersible Sovereign Explorer has been awarded a one-year primary term contract from Amerada Hess Corporation through its Triton Equatorial Guinea, Inc. business unit for drilling operations offshore Equatorial Guinea. The one-year contract, which provides for a one-year extension period, is expected to commence in early March 2002, following mobilization of the rig from the North Sea. Revenues expected to be generated over the one-year contract period, excluding mobilization and demobilization fees, could total approximately $33 million. An additional revenue opportunity is available should the rig be utilized in water depths exceeding 3,000 feet. The semisubmersible Sovereign Explorer is capable of drilling in water depths of up to 5,000 feet.

Finally, the arctic-class semisubmersible Polar Pioneer has received a six-month contract extension from Norsk Hydro to continue drilling operations offshore Norway. The semisubmersible, which has worked for Norsk Hydro in Norway since its delivery in 1985, is now contracted until February 2003. Revenues expected to be generated over the six-month contract extension could total approximately $24 million.

In addition, the deepwater drillship Discoverer 534 has been awarded a two-well, estimated 60-day contract from Reliance Industries Limited in India. The drillship is expected to begin mobilizing from the U.S. Gulf of Mexico in late January 2002 and commence drilling operations offshore India by early-April. Revenues expected to be generated over the estimated 60-day contract period, excluding mobilization and demobilization fees, could total approximately $8 million. Delivered in 1975 and significantly upgraded in 1991, the Discoverer 534 is a dynamically positioned drillship capable of drilling in water depths of up to 7,000 feet.

Transocean Sedco Forex Inc. is the world’s largest offshore drilling contractor with 165 full or partially owned and managed mobile offshore drilling units, inland barges and other assets utilized in the support of offshore drilling activities worldwide. The company’s mobile offshore drilling fleet is considered one of the most modern and versatile in the world with 31 high-specification semisubmersible rigs and drillships, 31 other semisubmersible rigs and drillships and 54 jackup drilling rigs. Transocean Sedco Forex Inc. specializes in technically demanding segments of the offshore drilling business, including industry-leading positions in deepwater and harsh environment drilling services. With a current equity market capitalization in excess of $9 billion, the company’s ordinary shares are listed on the New York Stock Exchange under the symbol “RIG.”

The Discoverer Spirit installed and tested blowout prevention equipment October 27 and 28 on Unocal’s Trident 2 well in Alaminos Canyon block 903, surpassing the previous industry water depth record, also held by the Discoverer Spirit, for drilling in 9,687 feet of water. The prior record was set in May 2001 on the first Trident well in Alaminos Canyon block 903.

The Discoverer Spirit utilizes Transocean Sedco Forex’s proprietary dual-activity drilling process. Along with Unocal’s unique approach to low-cost drilling, dual activity is designed to reduce by approximately 15% the time required to drill exploration wells and up to 40% for production wells. Dual-activity time savings are achieved by performing drilling tasks in parallel steps instead of sequentially with conventional offshore drilling rigs. To date, the Discoverer Spirit has drilled five deepwater exploration wells in the Gulf of Mexico for Unocal, resulting in significant time savings.

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