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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: RGinPG who wrote (11094)	2/9/1998 10:47:00 AM
From: pz	Respond to of 95453

Monday February 9, 10:00 am Eastern Time Company Press Release SOURCE: Transocean Offshore Inc. Transocean Offshore Inc. Receives 5-Year Commitment From Chevron for New Discoverer Enterprise Class Drillship HOUSTON, Feb. 9 /PRNewswire/ -- Transocean Offshore Inc. (NYSE: RIG; OSE) announced today that it has received a contract commitment from Chevron USA, Inc. for a new Discoverer Enterprise class ultra-deepwater drillship. The contract is for a period of 5-years plus 3 one-year options. The unit will possess dual activity drilling capability, the unique well construction methodology developed by Transocean Offshore which allows for drilling tasks associated with a single well to be accomplished in a concurrent rather than sequential manner. The dual activity drilling process is designed to reduce critical path activity and improve efficiency in both exploration and development drilling when applied in a deepwater drilling environment. The new Discoverer Enterprise class drillship will be constructed at a cost in excess of $300 million including capitalized interest and other non- hardware costs. Revenues to be generated over the 5-year contract period are approximately $374 million. The contract commitment includes a standard cost escalation provision allowing for the recovery of certain incremental costs during the life of the contract. Initial operations in the U.S. Gulf of Mexico are expected to commence in 2000. The Company has an option to contract with Astillero y Talleres del Noroeste SA (Astano), Ferrol, Spain, for the construction of the unit's hull and major marine systems. The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical and future trends, on general economic and business conditions and on numerous other factors, including expected future developments, many of which are beyond the control of the Company. Such forward-looking statements are also subject to certain risks and uncertainties as disclosed by the Company from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, the Company's actual results may differ materially from those indicated in or implied by such forward-looking statements. Transocean Offshore Inc. is a worldwide offshore drilling company engaged in contract drilling of oil and gas wells. Headquartered in Houston, Texas, the Company specializes in technically demanding segments of the offshore drilling business, including deepwater, harsh environment, international turnkey and integrated drilling services.