Transocean Offshore Inc. Announces 30-Month Contract for Discoverer Seven Seas

Transocean Offshore Inc. announced one of its operating subsidiaries has been awarded a 30-month contract commitment by Petróleo Brasilerio S.A. (Petrobras), the state oil company of Brazil, for deepwater, dynamically positioned drillship Discoverer Seven Seas. The contract is expected to commence during August 1999, following the completion of the rig's current drilling assignment in the U.S. Gulf of Mexico and an estimated 40-day mobilization period to Brazil. Revenues expected to be generated over the 30-month contract period are $90 million. In addition, the contract commitment provides for a daily earned bonus opportunity of up to five percent of the base revenue expectation. In its new assignment, Discoverer Seven Seas will be utilized primarily on the Roncador field in the Campos basin offshore Brazil. The rig operated for Petrobras in the Brazilian market as recently as 1996, when it drilled the Roncador discovery well in more than 6,000 ft. of water.