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Forward-Looking Statement

The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which could be made include, but are not limited to, statements involving prospects for the Company, expected revenues, costs and results of operations, market outlook, contract backlog, operational performance, rig demand, dayrates, rig reactivations, major rig upgrades, newbuild and acquisition opportunities, uses of excess cash including stock buybacks, debt reduction, fleet marketing efforts, rig mobilizations and planned shipyard programs. Such statements are subject to numerous risks, uncertainties and assumptions, including but not limited to, uncertainties relating to the level of activity in offshore oil and gas exploration and development, exploration success by producers, oil and gas prices, rig demand, drilling industry market conditions, possible delays or cancellation of drilling contracts, work stoppages, operational or other downtime, the Company's ability to enter into and the terms of future contracts, the availability of qualified personnel, labor relations, future financial results, operating hazards, political and other uncertainties inherent in non-U.S. operations (including exchange and currency fluctuations), war, terrorism and cancellation or unavailability of insurance coverage, the impact of governmental laws and regulations, the adequacy of sources of liquidity, the effect of litigation and contingencies and other factors discussed in the Company's most recent Form 10-K for the year ended December 31, 2004 and in the Company's other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the Company’s web site at www.deepwater.com/Non-GAAP.cfm.

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Uniquely positioned in the best business cycle seen in 30 yearsHigh-Specification Floaters Fleet – industry leader

Other Floaters – largest fleet, positioned in key market sectors

Jackups Fleet – focused in Asia and Mideast

Record revenue backlog

Company Overview

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$2.0$2.4 $2.2

$1.3$0.7

$0.1

$0.1

$0.2

$0.4

$0.9$1.2

2006 2007 2008 2009 2010 2011

High-Specification Fleet Other Fleet

Revenue Backlog By Yearat January 31, 2006

Total Revenue Backlog (1): $11.5 Billion

(1) Calculated by multiplying the contracted operating dayrate by the firm contract period from January 31, 2006 forward. Reflects signed contracts only. Revenue backlog excludes revenues from mobilization, demobilization, contract preparation and customer reimbursables. Backlog is indicative of the full contractual dayrate, which could vary due to rig downtime.

(1)

$3.2 $3.3

$2.6

$1.5

$0.8

$0.1

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Uniquely positioned in the best business cycle seen in 30 yearsHigh-Specification Floaters Fleet – industry leader

Other Floaters – largest fleet, positioned in key market sectors

Jackups Fleet – focused in Asia and Mideast

Record revenue backlog Additional contracts pending (LOIs) total approximately 48 rig years and $3.7 billion in revenues

Strong balance sheetSignificant debt reduction over past five years

Excellent cash flow generation through the cycle

Internal growth opportunitiesRig reactivations and upgrades

New rig construction and/or acquisitions

$2 billion stock repurchase authorization

Company Overview

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Deepwater capable rigs remain in tight supply

Further improvement in dayrates expected

Especially “Other Deepwater” units

Customers interested in longer-term contracts

Supports longer-duration cycle

Growing interest in new construction

Majors, Independents and NOCs

Numerous locations

High-Specification Floaters FleetMarket Sector Comments

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Quarterly Dayrate ProgressionNew Contracts Signed 2004 - 2005

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

US$ Avg. Qtrly Dayrate

Fifth-Gen. DW Floaters Other DW Floaters

2004 2005

Deepwater Floaters Fleet

24 mos.Deepwater Nautilus24 mos.Deepwater Millennium

36 mos.Deepwater Millennium60 mos.Deepwater Horizon

36 mos.Discoverer Spirit24 mos.Sedco Energy

24 mos.Deepwater Expedition18 mos.Discoverer Spirit

26 mos.Deepwater Pathfinder12 mos.Deepwater Nautilus

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82%

18%

High-SpecificationFloaters Fleet

(34 Rigs(2))

Percent of FleetUnder Contract Commitments

2006 2007

Committed

Uncommitted

70%

30%

Effective January 31, 2006(1) Excludes letters of intent(2) Includes two Sedco-700 series rig upgrade commitments

(1)

2008

56%

44%

75%75%90%Other High-Spec. (4 Rigs)

50%51%69%Other Deepwater (17 Rigs(2))

59%94%96%Fifth-Generation (13 Rigs)

200820072006

9 2006 2007

Other High-Spec

Other Deepwater

Fifth-Generation

High-Specification FloatersFleet Contract Status

2008

Firm Priced Option

Horizon

Spirit

M illennium

Expedit ion

Naut ilus

Discovery

Pathf inder

Front ier

Sedco Express

Deep Seas

Enterprise

Sedco Energy

Cajun Express

Sedco Upg # 2

Navigator

Sedco 710

Sedco Upg # 1

Seven Seas

Sedco 707

D534

Peregrine I

Leader

Rather

Richardson

Cunningham

M arianas

SovEx

Jack Bates

M .G. Hulme

Sedco 709

Arct ic

Polar Pioneer

P.B Loyd

Goodrich

2009 2010At January 31, 2006

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Strong Geology With Expanding ActivitySupports Deepwater Sustainability

Established

EstablishedGulf of Mexico

Lease expirations driving short-term demand

BrazilExploration successIncreased activity from int’l operators

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Strong Geology With Expanding ActivitySupports Deepwater Sustainability

Established Developing

DevelopingGulf of Mexico

Ultra-deep well bores - 34,000+ feetTaxing capabilities of Fifth-Generation Deepwater fleet

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Strong Geology With Expanding ActivitySupports Deepwater Sustainability

Established Developing Frontier

FrontierMexico

Deepwater reserves - 36 billion bbls +Orphan Basin

Largest undrilled geological structure in the world

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Customer demand remains strong in all regions

Fleet largely committed through 2006

Dayrates continuing to increase

Average contract length one year

Two reactivations underway with attractive contracts

Two additional reactivations possible in 2006

Other Floaters FleetMarket Sector Comments

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Quarterly Dayrate ProgressionNew Contracts Signed 2004 - 2005

Other Floaters Fleet

50,000

100,000

150,000

200,000

250,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

US$ Avg. Qtrly Dayrate

Other Floaters Fleet

2004 2005

First Quarter 2006 Contract Signings To DateSedco 711 $283,000J.W. McLean $250,000

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Other FloatersFleet (mid-water)

(21 Rigs(2))

Percent of FleetUnder Contract Commitments

71%

29%36%

64%

82%

18%

High-SpecificationFloaters Fleet

(34 Rigs(2))

2006 2007

Committed

Uncommitted

70%

30%

2008

56%

44%

16%

84%

Effective January 31, 2006(1) Excludes letters of intent(2) Includes two Sedco-700 series rig upgrade commitments

(1)

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Strong customer demand most evident in Asia and the Middle East

Dayrate improvement continuesTrident 20 $130,000 – Previously $90,000

Shelf Explorer $120,000 – Previously $70,000

J.T. Angel $ 97,000 – Previously $60,000

Contract durations lengthening

Transocean has numerous pending contracts (LOIs)25 rig years

Estimated revenue backlog of approximately $1.2 billion

Pursuing fleet upgrade opportunitiesPetroJack ASA agreement

Jackups FleetMarket Sector Comments

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Other FloatersFleet (mid-water)

(21 Rigs(2))

Percent of FleetUnder Contract Commitments

71%

29%36%

64%

82%

18%

High-SpecificationFloaters Fleet

(34 Rigs(2))

2006 2007

Committed

Uncommitted

70%

30%

2008

56%

44%

16%

84%

Jackups Fleet(25 Rigs)

77%

23%

40%

60%

12%

88%

Effective January 31, 2006(1) Excludes letters of intent(2) Includes two Sedco-700 series rig upgrade commitments

(1)

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Secure “forward-start” contracts for High-Specification Floaters fleet

Significant term and premium rates

Capture contracts for High-Specification Floaters construction

Execute efficientlySafety is paramount, minimize downtime and cost inflation

Projects on time and on budget

Attract, train and retain personnel

Near-Term Focus

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