Marine Log

June 1, 2006

GlobalSantaFe in jackup deal with Saudi Aramco

GlobalSantaFe Corporation (NYSE: GSF) has signed a contract with Saudi Aramco to provide four jackup rigs for four-year terms commencing in the first half of 2007.

The four rigs, the GSF Main Pass I, GSF Main Pass IV, GSF High Island I and GSF High Island II, are scheduled to mobilize in pairs in the fourth quarter of 2006 from the U.S. Gulf of Mexico to a Middle East shipyard for approximately 60 days of upgrades. The rigs will then move to their drilling locations offshore Saudi Arabia, with contract commencement expected in March and April 2007.

Under the four year contracts, each jackup will earn day rates "in the low $160's" plus a $24 million mobilization payment amortized over the four years of the contract.

The Saudi Aramco agreement is the largest drilling contract ever signed by GlobalSantaFe, and it is believed to be the largest jackup agreement in the history of the offshore drilling industry.

Including this agreement, the strong worldwide demand for offshore drilling services has pushed GlobalSantaFe's contract drilling backlog to more than $8 billion from $4.8 billion at the start of this year.

"We are very pleased to resume a long and mutually beneficial relationship with Saudi Aramco that dates back more than 30 years," said GlobalSantaFe President and CEO Jon Marshall. "This agreement supports Saudi Aramco's continuing expansion of its exploration and development drilling programs to supply the world's increasing demand for energy, and it provides our shareholders with attractive returns through improved rates and considerably longer terms compared to those available in the Gulf of Mexico."