Offshore staff

HOUSTON -- Pride International Inc. has agreed to extend the existing contract on its deepwater semisubmersible Pride North America, operating offshore Egypt, for an additional three years. The company reached a separate agreement to operate deepwater semisubmersibles Pride Brazil and Pride Carlos Walter and mid-water semisubmersibles Pride South Atlantic and Pride South America under five-year agreements offshore Brazil. Expected aggregate day rate revenues under these agreements totals $2.1 billion, with an additional $200 million in performance bonus opportunities.

The three-year contract for thePride North America includes a fixed day rate of $443,000, with the third year adjusted by a maximum of 10%, according to an index of average contract day rates for similar rigs in 4Q 2009. The vessel will begin offshore Egypt operations in 1Q 2008.

The contract terms for the rigs operating offshore Brazil include a day rate of $295,000 (inclusive of a 15% performance bonus) for thePride Brazil and the Pride Carlos Walter, a day rate of $245,000 (inclusive of a 10% performance bonus) for the Pride South Atlantic and a day rate of $165,000 for the Pride South America (inclusive of an 18% performance bonus).

Pride expects to begin operations under the new terms after the current contract commitment for each rig is complete, beginning with thePride South America in 2Q 2007, followed by the Pride South Atlantic in 2Q 2008, and the Pride Brazil and Pride Carlos Walter in 3Q 2008.

All of the contracts include cost escalation provisions that begin upon the contract award.

11-21-06