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    Transocean Sedco Forex receives contract for semi-sub

    Contracts, Tenders and Rates // May 22, 2000
    Transocean Sedco Forex has announced that one of its operating subsidiaries has entered into a contract with BP Amoco for the semi-submersible Transocean Rather.

    The agreement covers one well, with a minimum duration of 120 days, plus an option to drill two additional wells. The drilling programme was expected to commence in the Gulf of Mexico in April and will generate an estimated $9.6 million in revenues.

    The company also said that its semi-submersible Transocean Richardson has completed a drilling program in the Gulf of Mexico with Kerr-McGee, and is now under contract to Anadarko Petroleum to drill two wells over an estimated 60-day duration.

    Following completion of the Anadarko assignment, the rig will return to Kerr-McGee to drill one well for a period of up to 60 days. Revenues to be generated by the Transocean Richardson during the two drilling programmes are estimated at $7.5 million.

    The Transocean Rather and Transocean Richardson are high-specification semi-submersibles capable of drilling in water depths of up to 4,500 feet and 5,000 feet, respectively. The rigs represent two of 43 semi-submersibles currently active in the Transocean Sedco Forex fleet.

    Transocean Sedco Forex has also announced that one of its operating subsidiaries has reached an agreement with Elf Exploration Angola (Elf) to amend the offshore drilling contract on the newbuild semi-submersible Sedco Express.

    The modifications to the contract pertain primarily to the date for possible early termination due to late delivery of the rig and total expected revenues over the duration of the contract.

    The date for possible termination of the contract has been extended from May 28, 2000 to December 28, 2000. The company currently expects delivery of the rig to Elf on or around the middle of 2000.

    The total expected revenues to be generated over the firm three-year term of the contract have been reduced by $23 million to an estimated $165 million. In addition, the amended contract allows Transocean Sedco Forex to recover a maximum of $3.7 millionof the revenue reduction during the initial six-months of the rig's operation through the achievement of minimum monthly performance goals.

    The company can also earn additional revenues during the term of the contract through a performance-based bonus programme.

    The dynamically positioned Sedco Express is one of three newbuild Sedco Express-class semi-submersibles currently under construction.

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