Offshore staff

Diamond Offshore Drilling Inc. signed Keppel FELS Ltd. to a $300 million contract for the construction of two KFELS B Class (Super) jackup rigs. These 350-ft water depth jackups will be capable of drilling to 35,000 ft, have a hook load capacity of two million pounds, and a cantilever reach of 70 ft.

This contract follows the letter of intent signed on May 3.

Under the agreement, Keppel will build theOcean Shield in Singapore, and the Ocean Scepter in Keppel AmFELS's yard in Brownsville, Texas.

Keppel will deliver both units in 1Q 2008.

6/14/05