Ocean Endeavor Is First Deepwater Oil Rig to Leave United States Waters Over President Obama's Drilling Ban

The Ocean Endeavor may be the first to leave the Gulf of Mexico, but it probably won't be the last. Per the Houston Chronicle and the official press release from Diamond Offshore Drilling below.

Diamond Offshore announced Friday that its Ocean Endeavor drilling rig will leave the Gulf of Mexico and move to Egyptian waters immediately — making it the first to abandon the United States in the wake of the BP oil spill and a ban on deep-water drilling.

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Diamond Offshore Drilling, Inc. Announces New Term Floater Commitment

HOUSTON, Jul 09, 2010 (BUSINESS WIRE) -- Diamond Offshore Drilling, Inc. (NYSE:DO) today announced that a subsidiary of the Company has entered into a term contract ending June 30, 2011, plus option, with Burullus Gas Company S.A.E. that will immediately mobilize the Ocean Endeavor from the Gulf Of Mexico (GOM) to Egypt.

Diamond Offshore President and CEO, Larry Dickerson, noted, "With new contracting severely restricted in the GOM as a result of the uncertainties surrounding the offshore drilling moratorium, we are actively seeking international opportunities to keep our rigs fully employed. This new contract for the Endeavor will help us preserve backlog, and will allow the previous operator of the rig to satisfy its contractual obligations which extended until June 30, 2011. We greatly regret the loss of U.S. jobs that will result from this rig relocation."

The new contract, combined with a $31 million early termination fee paid by the previous operator of the rig, is expected to generate combined maximum total revenue of approximately $100 million.

Diamond Offshore provides contract drilling services to the energy industry around the globe and is a leader in deepwater drilling. Maximum contract revenue as stated above assumes 100% rig utilization. Generally, rig utilization rates approach 95-98% during contracted periods; however, utilization rates can be adversely impacted by additional downtime due to unscheduled repairs, maintenance and weather. Additional information on Diamond Offshore Drilling, Inc. and access to the Company's SEC filings is available on the Internet at http://www.diamondoffshore.com.

SOURCE: Diamond Offshore Drilling, Inc.

Diamond Offshore Drilling, Inc.
Director, Investor Relations
Les Van Dyke, (281) 492-5370