Update on Discoverer Enterprise

News - June 16, 2000

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Transocean Sedco Forex says it has received a letter styled as a 'notice of default' from BP Amoco pertaining to the five-year contract on the ultra-deepwater drill ship Discoverer Enterprise.

The company says the notice was issued in response to incidents of non-production resulting from equipment problems pertaining to the rig's blowout prevention system (BOP).The rig remains on contract and is currently standing by on location at Mississippi Canyon block 822 in the Gulf of Mexico.

Transocean Sedco Forex says it strongly disputes that it is in 'default' and plans to meet with BP Amoco to resolve the matter.

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