1 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, contract backlog, operational performance, rig demand, cost reduction efforts, debt reduction, fleet marketing efforts, the duration and financial impact of a labor strike in Norway, rig mobilizations, planned shipyard programs, drilling rig repair time and the timing of additional potential offering(s) of TODCO shares. 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, the integration of acquired businesses, possible delays or cancellation of drilling contracts, work stoppages, the Company's ability to enter into and the terms of future contracts, the availability of qualified personnel, labor relations, effect of fire, 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, 2003 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.

2 Presentation

‹Company Overview

‹Market Sector Review

‹Management Focus

3 Diversification by Geographic Region and Asset Capability Rig Mobilizations: Recently Completed – Semi Actinia from Med to India Semi Sov. Explorer from yard to Trinidad Semi Jack Bates from N.Sea to Australia Jackup Trident VI from W. Africa to SEA North Europe - 17 Rigs Jackup J.T. Angel from India to SEA 17 Semis In Progress - Drillship Pathfinder from U.S. GoM to W. Africa Semi Rather from W. Africa to N. Sea Jackup S. Explorer from W. Africa to SEA Middle East/Caspian - 8 Rigs North America - 13 Rigs 1 Semi 8 Semis 7 Jackups 5 Drillships India - 11 Rigs 1 Semi 2 Drillships Italy - 1 Rig TODCO - 57 Rigs 8 Jackups 1 Jackup 24 Jackups Southeast Asia - 17 Rigs 3 Submersibles 30 Barges 5 Semis 8 Jackups 2 Tenders Brazil/Trinidad - 10 Rigs 2 Barges 6 Semis West Africa - 14 Rigs 4 Drillships 6 Semis 2 Drillships 2 Jackups 2 Tenders 2 Barges

As of October 26, 2004, above display excludes 1 drillship utilized in a research mode, 1 platform rig, 4 1 MOPU, as well as TODCO’s 9 land rigs, 3 lake barges and 1 platform rig. Revenue by Source

Other Brazil 7% 12%

Fifth-Generation Deepwater Floaters 19% 36% Europe/Africa Jackups 38%

Asia/ Australia 21%

12% Other Floaters

6% Other High-Spec 20% 29% Floaters Other Deepwater Floaters North America By Asset Type By Geographic Location

Revenues (ex TODCO) for the Nine Months Ended September 30, 2004 $1,689.4 Million

5 Financial Highlights

September 30, December 31, (US$ Millions) 2004 2003

Cash and Cash Equivalents $775.8 $474.0

Goodwill, net 2,257.1 2,230.8

Total Assets 11,704.0 11,662.6

Total Debt 3,061.4 3,658.1

Total Liabilities and Minority Int. 4,255.4 4,470.0

Shareholders’ Equity $7,448.6 $7,192.6

6 Debt Maturity Schedule as of October 31, 2004

(at face value, assuming all puts exercised at first put date)

800

600 s n

illio 400 m $

200

0 2020 2022 2024 2026 2028 2030 2004 2006 2008 2010 2012 2014 2016 2018 Project Debt Bank Debt Putable Public Debt Ot her Public Debt Off-Balance Sheet Financing

7 7 Net Debt Approaching Target Range

$ Billions 5

$4.0 4 $3.8 $3.5 $3.3 $3.1 $3.0 $3.2 3 $2.9 $2.8 $2.8 $2.3 2 Target 1

0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2002 2003 2004

8 Fourth Quarter 2004 Comments From Conference Call

‹ Norwegian labor strike has ended ¾ Rigs have returned to work ‹ Trident 20 and Jim Cunningham operational incidents ¾ Repair and other costs could total $20 million to $25 million ‹ Rig mobilizations ¾ Drillship Deepwater Pathfinder - to Nigeria from U.S. ¾ Semisubmersible Rather – to North Sea from West Africa ¾ Jackup Shelf Explorer – to Indonesia from West Africa ‹ Operational downtime ¾ Drillship Deepwater Millennium – possible 45 days between contracts ¾ Semisubmersible Polar Pioneer – 30 days for survey

9 Leading Presence in Major Deepwater Regions

• Industry’s largest deepwater fleet • 50% of industry capacity in 7,000+ feet of water • 13 fifth-generation units • 19 of 28 units possess

8

5 4 2 2 1

RIG GSF 2 Others NE DO 1 Other 4 7,000+ Ft Water Depth 4,500 to 6,999 Ft Water Depth 222 2 2

RIG DO 2 Others RIG ATW 2 Others 7,000+ Ft Water Depth 4,500 to 6,999 Ft Water Depth

4 3 3 2 2 1 6 RIG PDE 4 Others RIG PDE 1 Other 4 4 4 1 1 1 7,000+ Ft Water Depth 4,500 to 6,999 Ft Water Depth

RIG DO GSF NE RIG PDE 5 Others

7,000+ Ft Water Depth 4,500 to 6,999 Ft Water Depth

10 Source: ODS Petrodata as of October 2004, excludes two GSF semisubmersibles under construction and rated for water depths of up to 10,000 feet. High-Specification Floaters Near-Term Market Sector Outlook

‹ Market sector for ultra-deepwater rigs continuing to improve

¾ Possible rig shortage developing in 2005

‹ Exploration and development programs expanding globally

‹ Dayrates for ultra-deepwater rigs beginning to reflect tighter utilization

‹ Market sector for “Other Deepwater” rigs remains modestly oversupplied

¾ West Africa, Brazil

¾ Gulf of Mexico market sector experiencing some strengthening

11 DeepwaterDeepwater ProjectsProjects

Barents Sea Project Awarded

Shell Ormen Lange Norsk Hydro Troll

BP Black Sea BP Atlantis & Thunderhorse BHP Neptune and Shenzi Eastern Gulf Dev. Woodside Mauritania ONGC ONGC

CNR Baobab XOM Erha

Multi-Client Explor.

BP Greater Plutonio Woodside

12 Updated October, 2004 DeepwaterDeepwater ProjectsProjects

Bids In Process Future Opportunities

CVX Tahiti (2) Great White/Trident/Tobago CVX Blind Faith Reliance Explor. CVX Exploration Woodside Mauritania Reliance KG Dev. Total Akpo Murphy CVX Agbami Shell Bonga CVX Exploration Total block 17 (Dalia)

XOM Kizomba C BP Development (Blk 31)

13 Updated October, 2004 Forecast Demand for 5th Generation Rigs Leading To Possible Shortage in 2005

40 Forecasted 5th Gen Rig Requirements Additional Short Term Demand Known Term Projects 35 Currently Contracted Rigs Rig Supply 30 Additional Potential Shortage? Short Term Demand 25

20 s g

Ri Known Term Projects 15

10

Currently Contracted Rigs 5

0 SONDJFMAMJJASONDJFMAMJJASOND

2004 2005 2006

Updated October 2004 14 Source: ODS Petrodata & Marketing Intelligence 2 High-Specification Floaters Fleet Contract Status

Sedco Express

Enterprise Pathfinder 2004 Contract Signings: Frontier

Deep Seas Enterprise 36 months Gulf of Mexico Fifth- Expedition S. Express 36 months Angola Generation Ho r i zo n P.B. Loyd 24 months UK Spirit Naut ilus Frontier 23 months Brazil Cajun Express Sedco 707 23 months Brazil M illennium

Discovery Arctic 19 months Norway Sedco Energy Leader 15 months Norway Seven Seas

Sedco 710 Sedco 707 Jack Bates 13 months Australia Richardson Horizon 12 months Gulf of Mexico Leader

Other Jack Bates Millennium 6 months Gulf of Mexico Deepwater SovEx Discovery 4 months Nigeria Navigator Sedco 709 Revenue Backlog: M arianas

D534 (1) (1) Cunningham January 2004 Present Change M.G. Hulme

Rat her $1,420 million $1,710 million $290 million

Peregrine I (1) Approximates revenues that could be earned Other P.B Loyd High-Spec Polar Pioneer Arctic

Goodrich 2004 2005 2006 2007 2008 15 Updated October 26, 2004 International Jackup Rigs Near-Term Market Sector Outlook

‹Strong customer demand continues

‹Growth areas in India, Far East and Middle East

¾ Numerous rig mobilizations in progress

‹Rate structure firm to higher

‹Speculative new construction entering active fleet in 2005 and 2006

Trident 20 16 Trident 9 Nordic Jackups Fleet Contract Status

C.E. Thornton

R. Yost

Trident XII

R. Tappmeyer

Trident II

Trident 17

R.W. Mowell 2004 Contract Signings:

Comet C.E. Thornton 36 months India

Trident IX Trident 17 12 months Vietnam Interocean III H.H. Ward 12 months Malaysia G.H. Galloway R.W. Mowell 12 months Malaysia H.H. Ward G.H. Galloway 12 months Italy Trident IV Trident IV 12 months Italy S. Explorer Trident XIV 12 Months Angola Trident 15

Trident 20 Trident 16 4 months Thailand

Trident XIV Nordic 4 months India

D.R. Stewart Trident VI 3 months India Trident 16 Shelf Explorer 8 months Indonesia Mercury Nordic Revenue Backlog: Trident VI January 2004 (1) Present (1) Change Trident VIII $485 million $470 million ($15 million) F.G. McClintock (1) Approximates revenues that could be earned J.T. Angel

Jupiter 2004 2005 2006 2007 2008 17 Updated October 26, 2004 Other Floaters Near-Term Market Sector Outlook ‹Market sector remains underutilized, but improvement is evident in certain regions ‹North Sea customer drilling requirements increasing in 2005 ¾ Dayrate range for semis will improve from 2004 level ¾ Company to reactivate two U.K. semisubmersibles in 2005 ‹Other regions seeing stable to modest improvement in activity ¾ U.S. Gulf of Mexico – Reactivation of one to two rigs possible in 2005

Searcher

J.W. McLean 18 Sedco 700 Other Floaters Fleet Contract Status

Driller

S704

S711

J.W. McLean 2004 Contract Signings:

Actinia Driller 23 months Brazil

Searcher Sedco 704 17 months U.K. North Sea

S703 J.W. McLean 16 months U.K. North Sea

J. Shaw Sedco 711 12 months U.K. North Sea

S601 Searcher 11 months Norway S700 Actinia 7 months India S714 Sedco 601 6 months Indonesia S701 Sedco 714 6 months U.K. North Sea S600 Sedco 700 5 months E. Guinea Legend John Shaw 5 months U.K. North Sea S712 Sedco 703 4 months Australia S706

Winner Revenue Backlog: Falcon 100

Amirante (1) (1)

C.K. Rhein January 2004 Present Change

Prospect $95 million $200 million $105 million

S702 (1) Approximates revenues that could be earned

Wildcat

Explorer

Peregrine III 19 2004 2005 2006 2007 2008 Updated October 26, 2004 Management Focus ‹ Safety and performance ‹ Reduce cost structure ‹ Pay down debt ‹ Contract opportunities in ultra-deepwater ‹ TODCO, other non-strategic asset divestitures

Longer-Term Focus ‹ Build cash ‹ Evaluate developing opportunities

20 Summary

‹ Transocean offers the largest international fleet of offshore drilling rigs, an industry leading ability to respond to expanding deepwater drilling opportunities, strong financial capacity and large equity capitalization

‹ We expect deepwater drilling opportunities to expand, led by multi- year West Africa development programs, Gulf of Mexico exploration and new, emerging areas, leading to a possible shortage in 2005 of Fifth-Generation rigs

‹ We expect international jackup rigs to experience strong utilization and stable to modestly higher dayrates and mid-water floater rigs to experience improved utilization and dayrates most notably in the North Sea

‹ Company’s focus remains on capturing key deepwater term contracts, consistent operational execution, cost control, maximum cash generation, debt reduction and return on capital

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