Sedco Forex and Elf Angola amend contract on new semisub Sedco Express

Transocean Sedco Forex announced that one of its operating subsidiaries has reached an agreement with Elf Exploration Angola (Elf) to amend the offshore drilling contract on the newbuild semisubmersible Sedco Express. Modifications to the contract pertain primarily to the date for possible early termination due to late delivery of the rig and total expected revenues over the duration of the contract.
The date for possible termination of the contract due to late delivery of the rig has been extended from May 28, 2000 to December 28, 2000. The company currently expects delivery of the rig to Elf on or around the middle of 2000.

The total expected revenues to be generated over the firm three-year term of the contract have been reduced by $ 23 mm to an estimated $ 165 mm. In addition, the amended contract allows Transocean Sedco Forex to recover a maximum of $ 3.7 mm of the revenue reduction during the initial six-months of the rig's operation through the achievement of minimum monthly performance goals. Also, the company can earn additional revenues during the term of the contract through a performance-based bonus program.
The dynamically positioned Sedco Express is one of three newbuild Sedco Express-class semisubmersibles currently under construction by Transocean Sedco Forex. The high specification semisubmersible, which is capable of ultra-deepwater operations in up to 7,500 feet of water, possesses streamlined logistics, extensive mechanisation and parallel tubular handling operations, which contribute to improving overall well construction time by an estimated 25 %.
The rig is currently undergoing thruster installation off the coast of Brest, France and has begun its final shipyard commissioning and equipment testing. The rig's initial drilling assignment is expected to be off the coast of Angola.

Transocean Sedco Forex is the world's largest offshore drilling contractor, with an equity market capitalisation in excess of $ 7.0 bn. The company's modern and versatile mobile offshore drilling fleet, currently totalling 73 fully or partially owned, chartered and managed rigs, is located in every major oil and gas drilling region.
Transocean Sedco Forex specialises in technically demanding segments of the offshore drilling business, including industry-leading positions in deepwater and harsh environment drilling services.