2007 the dawn of the n e w transocean Proxy Statement & 2007 Annual Report CONTENTS SHAREHOLDERS’ LETTER NOTICE OF 2008 ANNUAL GENERAL MEETING AND PROXY STATEMENT 2007 ANNUAL REPORT TO SHAREHOLDERS ABOUT TRANSOCEAN INC. We are the world’s largest offshore drilling contractor and the leading provider of drilling management services worldwide. With a fleet of 138 mobile offshore drilling units, plus eight ultra-deepwater units under construction, our fleet is considered one of the most modern and versatile in the world due to its emphasis on technically demand- ing segments of the offshore drilling business. We have more than 21,000 personnel worldwide. Since launching the offshore industry’s first jackup drilling rig in 1954, we have achieved a long history of techno- logical “firsts.” These innovations include the first dynamically positioned drillship, the first rig to drill year-round in the North Sea, the first semisubmersible rig for Sub-Arctic, year-round operations and the latest generations of ultra-deepwater semisubmersible rigs and drillships. In addition, we presently are constructing eight of the most modern and advanced drillships and semisubmersible rigs. Our equity market capitalization was approximately $41.9 billion at March 10, 2008, the largest among all offshore drilling companies. Our ordinary shares are traded on the New York Stock Exchange (NYSE) under the symbol RIG. Transocean: We’re never out of our depth.TM * As of March 10, 2008. Excludes two idle rigs held for sale, one de-watering unit and one coring drillship. ABOUT THE COVER: The ultra-deepwater drillship Discoverer Clear Leader, one of eight newbuild units scheduled to enter the Transocean fleet in the next few years, is being constructed in Korea and will include the most advanced offshore drilling technology. Like the new Transocean, this newbuild rig will target optimal offshore drilling effectiveness and efficiency. FORWARD-LOOKING STATEMENTS: Any statements included in this Proxy Statement and 2007 Annual Report that are not historical facts, including without limitation statements regarding future market trends and results of operations are forward-looking statements within the meaning of applicable securities laws. Such statements are subject to numerous risks and uncertainties including, but not limited to, those that can be found in the Forward-Looking Information section (immediately preceding Item 1) and Risk Factors section (Item 1A) of the 2007 Annual Report that could cause actual results to differ materially from those projected. 2007 LETTER TO THE SHAREHOLDERS The year 2007 will be remembered as a landmark year in Transocean’s history. We not only had a record year in terms of financial, operating and safety performance, we also transformed the company by merging with GlobalSantaFe to enhance our leadership position as the world’s largest offshore drilling company. Simultaneous with the merger, we completed a recapitalization of the company that returned approximately $15 billion in cash to Transocean and GlobalSantaFe shareholders. Combining Transocean and GlobalSantaFe created a new organization with unparalleled opportunities. It is a truly exciting opportunity for all of our stakeholders, particularly our shareholders, our customers and our employees. The two companies have always been considered world-class organizations with common cultural values, excellent operating reputations, high-quality assets and outstanding people. So we are an ideal fit and, together, we have the potential to create significantly more value than we could separately. The merger accomplished a number of important strategic objectives for both Transocean and GlobalSantaFe. For the new Transocean, the merger: • expanded our customer base and deepened existing relationships with significant customers; • created by far the largest, most technically advanced floater fleet in the world; • assured us of a leading presence in almost every major offshore drilling province in the world; • created a company with the largest jackup fleet in the business; • created economies of scale that will lead to cost reduction opportunities; • enhanced our operational capability and geographic diversity; • created a much larger pool of well-qualified and experienced employees; and • further established us as the most technically capable organization in the contract drilling business. With a combined contract revenue and free cash flow backlog as of December 31, 2007 in excess of $31 billion and $16 billion, respectively, Transocean has the financial capacity to invest in growth while continuing to focus on paying down the debt incurred in the recapitalization. Our goal is to reach a level of total debt limited to the greater of the free cash flow from our backlog less $5 billion, or 15 percent of our total capitalization. To this end, we intend to dedicate our free cash flow in 2008 and most of 2009 to debt reduction. During 2007, we were awarded a long-term drilling contract requiring the construction of a fourth Enhanced Enterprise-class drillship and committed to the construction of a fifth dual-activity drillship capable of drilling in up to 10,000 feet of water. We also secured a contract for one of two drillships for which we held marketing rights and as a result, we purchased a 50 percent interest in a joint venture that will own the two vessels upon completion. We now own or have an ownership interest in eight new ultra-deepwater rigs under construction, the seven drillships mentioned above and one semisubmersible. All eight rigs under construction represent the state-of-the-art in ultra-deepwater drilling technology, and six of them employ our patented dual activity technology. In terms of safety performance, 2007 was also the best year in Transocean’s history as we achieved new record lows in the rate of total recordable incidents and in the actual and potential severity of incidents. The credit for this accomplishment goes to the people of our organization and their efforts to realize higher standards of safe operation and an incident-free workplace. Looking forward, the future for Transocean remains bright. Our ultra-deepwater, deepwater and harsh-environment fleet is almost fully committed in 2008, with little availability in 2009 and 2010. We also have a large number of long-term, forward-start contracts, some of which provide fleet commitments beyond 2014. Similarly, few of our midwater rigs have availability in 2008, with a substantial portion of our midwater fleet contracted well into 2009. In addition, our jackup fleet is more than 80 percent committed in 2008. Our significant contract backlog gives us confidence that we will continue to see strong financial performance in the years ahead. To ensure our continuing success, we will be focusing our efforts on achieving operational excellence, particularly in four crucial areas: • developing our existing employees and recruiting new talent; • cost containment through our supply chain management and other initiatives; • shipyard project execution as shipyards and vendors become more capacity constrained; and • safety and the environment, with a goal of making Transocean’s workplace incident-free with industry-leading environmental standards. All of us at Transocean recognize that we have important responsibilities to our shareholders, customers, host countries and local communities. As the world’s largest offshore drilling contractor, we strive to deliver superior returns to our shareholders with the most modern, technologically advanced and versatile drilling rig fleet in the world. Our goal is for our operations to have as little impact on the environment as possible as we achieve incident-free operations while delivering the most efficient drilling service to our customers. Our 21,100 dedicated employees take these responsibilities seriously and have done an outstanding job in making Transocean the industry leader. Sincerely, Robert E. Rose Robert L. Long Chairman Chief Executive Officer March 25, 2008 30AUG200710313040 April 2, 2008 Dear Shareholder: The 2008 annual general meeting of Transocean Inc. will be held on Friday, May 16, 2008 at 8:00 a.m., Bahamas time, at the British Colonial Hilton Nassau, Nassau, Bahamas. The Corporate Secretary’s notice of annual general meeting, the proxy statement and a proxy card are enclosed and describe the matters to be acted upon at the meeting. It is important that your shares be represented and voted at the meeting whether you plan to attend or not. Please read the enclosed notice of annual general meeting and proxy statement and date, sign and promptly return the proxy card in the enclosed self-addressed envelope. Sincerely, 26MAR200814431897 25MAR200823012640 Robert E. Rose Robert L. Long Chairman of the Board Chief Executive Officer This proxy statement and the accompanying proxy card are first being mailed on or about April 2, 2008 to record shareholders as of March 19, 2008. NOTICE OF ANNUAL GENERAL MEETING OF TRANSOCEAN INC. TO BE HELD MAY 16, 2008 The annual general meeting of Transocean Inc., a Cayman Islands exempted company limited by shares, will be held at the British Colonial Hilton Nassau, Nassau, Bahamas at 8:00 a.m., Bahamas time, on May 16, 2008 for the following purposes: (1) To elect four directors as members of our Board of Directors to serve until the 2011 annual general meeting and until their respective successors have been duly elected. (2) To approve the appointment of Ernst & Young LLP to serve as our independent registered public accounting firm for 2008. (3) To transact such other business as may properly be brought before the meeting. This constitutes notice of the meeting as required by Cayman Islands law and our Articles of Association. Only record holders of ordinary shares at the close of business on March 19, 2008 will be entitled to notice of, and to vote at, the meeting. The meeting may generally be adjourned from time to time without advance notice other than announcement at the meeting, or any adjournment thereof, and any and all business for which the meeting is hereby noticed may be transacted at any such adjournment.