Transocean Ltd
Transocean'Inc.,'is'a'leading'international'provider'of'offshore'contract drilling
services'for'oil'and'gas'wells.'As of March 1, 2004, we owned, had partial ownership'
interests in or operated 96 mobile offshore drilling units, excluding the'fleet
of TODCO,'a'publicly traded drilling company in which'we'own'a'majority interest.
As of this date, our fleet consisted of 32 High-Specification'semisubmersibles'
and'drillships'("floaters"),'26'Other Floaters,'26'Jackup Rigs and 12
Other Rigs.
Our mobile offshore drilling fleet is considered one of the most modern and
versatile'fleets'in'the'world.'Our'primary'business'is to contract these drilling'
rigs, related equipment and work crews primarily on a dayrate basis to drill'
oil and gas wells. We specialize in technically demanding segments of the offshore'
drilling'business'with'a'particular'focus'on deepwater and harsh environment'
drilling'services.'We also provide additional services, including management'
of'third'party'well'service'activities.
DRILLING'FLEET
We principally use three types of drilling rigs:
-'drillships;
-'semisubmersibles;'and
-'jackups.
Also'included'in'our'fleet'are'barge drilling rigs, tenders, a mobile offshore'
production unit, a platform drilling rig and a land rig. TODCOs fleet consists'
of'jackups,'barge drilling rigs, submersibles, land drilling rigs, a platform'
rig'and'lake'barges.
Most'of'our'drilling'equipment'is'suitable'for'both exploration and development
drilling, and we normally engage in both types of drilling activity.
Likewise, most of our drilling rigs are mobile and can be moved to new locations
in'response'to'client'demand.'All of our mobile offshore drilling units are
designed'for'operations'away'from port for extended periods of time and most
have'living quarters for the crews, a helicopter landing deck and storage space
for'pipe'and'drilling'supplies.
Our'operations are geographically dispersed in oil and gas exploration and development'
areas'throughout'the'world. Rigs can be moved from one region to another, but
the cost of moving a rig and the availability of rig-moving vessels may'cause'
the'supply'and'demand'balance'to vary somewhat between regions. However,'significant'
variations between regions do not tend to exist long-term because'of'rig mobility.
Consequently, we operate in a single, global offshore drilling'market. Because
our drilling rigs are mobile assets and are able to be moved'according'to'prevailing'
market'conditions,'we'cannot'predict'the percentage'of'our'revenues that will
be derived from particular geographic or political'areas'in'future'periods.
The'offshore'contract'drilling'market'remains'highly'competitive and cyclical,'
and'it'has'been'historically'difficult to forecast future market conditions.'
Extraneous'risks'include'declines'in oil and/or gas prices that reduce'rig demand
and adversely affect utilization and dayrates. Major operator and national oil
company capital budgets are key drivers of the overall business climate,'and'
these'may'change'within a fiscal year depending on exploration results'and'other'
factors.'Additionally,'increased'competition'for'our customers'drilling'budgets'
could'come'from,'among other areas, land-based energy'markets in Russia, other
former Soviet Union states and the Middle East.
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