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July 16, 2002

Transocean plans a spin off
Transocean Inc. plans to pursue a divestiture of its Gulf of Mexico Shallow and Inland Water business segment. It says it plans to establish the Shallow and Inland Water business as a separate, publicly traded company and is currently preparing an initial public offering of that company. Transocean Inc. expects to sell a portion of its interest in the initial public offering, which it hopes to complete by late 2002 or early 2003, subject to market conditions and other factors.

The Shallow and Inland Water business segment consists principally of jackup rig and drilling barge operations in the U.S. Gulf of Mexico. The business also includes the company's drilling operations in Trinidad and Venezuela. The business' fleet is currently comprised of 28 jackup rigs, three submersible rigs, 31 inland drilling barges and a platform rig, as well as nine land rigs in Venezuela. Transocean Inc. acquired these assets in early 2001, following its merger with R&B Falcon Corporation.

Transocean CEO J. Michael Talbert commented "Through strategic transactions and the construction of high-specification floaters, Transocean has built a globally diversified offshore drilling company with a core focus on the ownership and operation of premium mobile offshore drilling rigs. The pending divestiture of the Gulf of Mexico Shallow and Inland Water business segment will enable the company to intensify its focus in this area. Proceeds generated from an initial public offering will be used primarily to continue our focus on debt reduction."

Jan Rask has joined Transocean to be president and CEO of the separate entity. Rask previously served as president and CEO of both Marine Drilling Companies, Inc., from 1996 to 2001, and Arethusa (Off-Shore) Limited, from 1993 to 1996.

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