Rig: Ocean Endeavor

ExxonMobil spuds Domino-2 well in Romania

ExxonMobil Exploration and Production Romania Limited, a subsidiary of Exxon Mobil Corporation and OMV Petrom (OMV Petrom) announces commencement of drilling at Domino-2 in the Neptune deepwater block in the Romanian sector of the Black Sea. Data collected during the drilling program will be used to assess the size and commercial viability of the reservoir gas exploration well discovered Domino-1, in 2012. "If the discovery proves to be commercially viable, ExxonMobil will use its global expertise in deep water exploration and expertise in project execution to ensure resource development in a safe, responsible to the environment and in a timely manner" said John Knapp, CEO of ExxonMobil Exploration and Production Romania. As operator for the block deep Neptun Romania ExxonMobil brings vast experience and the latest technology with a long history of safe drilling deep wells throughout the world. "We will use the experience of over 40 years in the shallow waters of the Black Sea to contribute to the success of a pioneering project and Neptune Deep" said Gabriel Selischi, OMV Petrom Executive Board member responsible for Exploration and Production. "We are committed to investing significantly in exploration, development and production of hydrocarbons to ensure domestic oil and gas resources for Romania." Domino-2 is located approximately 200 kilometers offshore and is being drilled drilled in waters with a depth of about 800 meters by the ‘Ocean Endeavour’ semisub.

Keppel secures US$85 million rig upgrade from repeat customer

Keppel FELS Ltd (Keppel FELS), a unit of Keppel Corporation Limited through Keppel Offshore & Marine Ltd (Keppel O&M), has secured a contract from Diamond Offshore Services Company, a subsidiary of Diamond Offshore Drilling, Inc. (Diamond Offshore), to upgrade semisubmersible rig Ocean Endeavor for US$85 million. Completion of the upgrade is scheduled for fourth quarter 2006. Ocean Endeavor will be capable of drilling down to 35,000 feet and be fully outfitted for 8,000 feet moored operations, with design capabilities to operate in up to 10,000 feet of water. In addition, the rig will have increased crew quarters to accommodate up to 140 personnel, over 6,000 tons of operating variable deck load and increased usable deck space. Mr Larry Dickerson, President & COO of Diamond Offshore, said, “Keppel FELS comes with a proven track record of consistently delivering complicated upgrades on time and on budget. “We chose their yard because of the expertise and experience they demonstrated in the previous upgrades of our Victory-class semisubmersibles Ocean Baroness and Ocean Rover. “We are pleased to once again be embarking with them on a major rig upgrade.” In recent years, Diamond rigs upgraded or repaired at Keppel O&M yards include Ocean Baroness, Ocean Rover, Ocean America, Ocean Winner, Ocean Sovereign, Ocean Heritage, Ocean Tower, Ocean Warwick, Ocean Spartan and Ocean Spar. Ocean Endeavor is expected to arrive at Keppel FELS in May 2005 for the upgrading.

Upgrades for the Ocean Endeavor

Diamond Offshore Drilling Inc. (NYSE:DO) today announced initiation of a major upgrade of the Victory-class semisubmersible Ocean Endeavor for ultra-deepwater service. The modernized rig will be designed to operate in up to 10,000 ft. of water and will be the most capable of the Company's upgraded Victory-class units. The project is budgeted at $250 million including capitalized overhead and interest, spares, testing and delivery, mobilization to Singapore, and all other associated expenditures. Delivery is expected in approximately two years. The Ocean Endeavor will be fully outfitted for 8,000-ft. moored operations upon delivery and in certain applications will be capable of deploying a 12-point mooring system. In addition, the rig will have increased crew quarters' capacity, over 6,000 tons of operating variable deck load, and more than twice the useable deck space compared to the design of the previously upgraded Ocean Rover and Ocean Baroness. The Endeavor will employ the same Tripsaver(TM) technology that is at work on the Rover and Baroness, which provides for significant drilling efficiencies. "We have made the decision to move forward on the Endeavor upgrade based upon our confidence in the strength of the market," stated Diamond Offshore President and Chief Operating Officer, Larry Dickerson. "The modernized Endeavor will expand our 5th Generation semisubmersible fleet to four units, enhancing our ability to serve both the exploration and development needs of our customers. The estimated construction cost of this unit is significantly below new-build costs, and the relatively short construction schedule represents a large delivery advantage over new builds." The Endeavor, currently cold stacked in the Gulf of Mexico, will be mobilized to Keppel-FELS Ltd.'s shipyard in Singapore.