Cayman
Islands
|
66-0582307
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
4
Greenway Plaza,
Houston,
Texas
|
77046
|
(Address
of principal executive offices)
|
(Zip
code)
|
70
Harbour Drive, Grand Cayman, Cayman Islands
|
KYI-1003
|
(Address
of principal executive offices)
|
(Zip
code)
|
Title of
class
|
Exchange on which
registered
|
Ordinary
Shares, par value $0.01 per share
|
New
York Stock Exchange, Inc.
|
Item
|
Page
|
|
PART
I
|
||
5
|
||
15
|
||
23
|
||
23
|
||
23
|
||
27
|
||
PART
II
|
||
29
|
||
31
|
||
32
|
||
59
|
||
60
|
||
107
|
||
107
|
||
107
|
||
PART
III
|
||
107
|
||
107
|
||
107
|
||
107
|
||
107
|
||
PART
IV
|
||
108
|
§
contract commencements,
§
contract option exercises,
§
revenues,
§
expenses,
§
results of operations,
§
commodity prices,
§
customer drilling programs,
§
supply and demand,
§
utilization rates,
§
dayrates,
§
contract backlog,
§
effects and results of the GlobalSantaFe merger and related
transactions,
§
planned shipyard projects and rig mobilizations and their
effects,
§
newbuild projects and opportunities,
§
the upgrade projects for the
Sedco 700-
series
semisubmersible rigs,
§
other major upgrades,
§
contract awards,
§
newbuild completion delivery and commencement of operations
dates,
§
expected downtime and lost revenue,
§
insurance proceeds,
§
cash investments of our wholly-owned captive insurance
company,
§
future activity in the deepwater, mid-water and the jackup market
sectors,
§
market outlook for our various geographical operating sectors and classes
of rigs,
§
capacity constraints for ultra-deepwater rigs and other rig
classes,
§
effects of new rigs on the market,
§
income related to and any payments to be received under the TODCO tax
sharing agreement,
|
§
refinancing of the Bridge Loan Facility, including timing and components
of the refinancing,
§
uses of excess cash,
§
share repurchases under our share repurchase program,
§
issuance of new debt,
§
debt reduction,
§
debt credit ratings,
§
planned asset sales,
§
timing of asset sales,
§
proceeds from asset sales,
§
our effective tax rate,
§
changes in tax laws, treaties and regulations,
§
tax assessments,
§
operations in international markets,
§
investments in joint ventures,
§
investments in recruitment, retention and personnel development
initiative,
§
the level of expected capital expenditures,
§
results and effects of legal proceedings and governmental audits and
assessments,
§
adequacy of insurance,
§
liabilities for tax issues, including those associated with our activities
in Brazil, Norway and the United States,
§
liabilities for customs and environmental matters,
§
liquidity,
§
cash flow from operations,
§
adequacy of cash flow for our obligations,
§
effects of accounting changes,
§
adoption of accounting policies,
§
pension plan and other postretirement benefit plan
contributions,
§
benefit payments, and
§
the timing and cost of completion of capital
projects.
|
§
|
“anticipates”
|
§
|
“may”
|
|
§
|
“believes”
|
§
|
“might”
|
|
§
|
“budgets”
|
§
|
“plans”
|
|
§
|
“could”
|
§
|
“predicts”
|
|
§
|
“estimates”
|
§
|
“projects”
|
|
§
|
“expects”
|
§
|
“scheduled”
|
|
§
|
“forecasts”
|
§
|
“should”
|
|
§ |
“intends”
|
|
§
|
those
described under “Item 1A. Risk
Factors,”
|
|
§
|
the
adequacy of sources of liquidity,
|
|
§
|
our
inability to obtain contracts for our rigs that do not have
contracts,
|
|
§
|
the
effect and results of litigation, tax audits and contingencies,
and
|
|
§
|
other
factors discussed in this annual report 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
.
|
ITEM
1.
|
Bus
iness
|
|
§
|
drillships;
|
|
§
|
semisubmersibles;
and
|
|
§
|
jackups.
|
|
·
|
39
High-Specification Floaters, which are comprised
of:
|
|
·
|
29
Midwater Floaters;
|
|
·
|
10
High-Specification Jackups;
|
|
·
|
57
Standard Jackups; and
|
|
·
|
four
Other Rigs, which are comprised of:
|
Name
|
Type
|
Expected
completion
|
Water
depth
capacity
(in feet)
|
Drilling
depth
capacity
(in feet)
|
Contracted
location
|
|||||
Ultra-Deepwater Floaters
(a)
(8)
|
||||||||||
Discoverer
Americas (b)
|
HSD
|
Mid
2009
|
12,000
|
40,000
|
U.S.
Gulf
|
|||||
Discoverer
Clear Leader (b)
|
HSD
|
2Q
2009
|
12,000
|
40,000
|
U.S.
Gulf
|
|||||
Discoverer
Inspiration (b)
|
HSD
|
1Q
2010
|
12,000
|
40,000
|
U.S.
Gulf
|
|||||
GSF
Newbuild (b)
|
HSD
|
3Q
2010
|
12,000
|
40,000
|
(c)
|
|||||
Deepwater Pacific 1
(d)
|
HSD
|
2Q
2009
|
12,000
|
35,000
|
India
|
|||||
Deepwater Pacific 2
(d)
|
HSD
|
1Q
2010
|
10,000
|
35,000
|
(c)
|
|||||
Discoverer
Luanda (b)
|
HSD
|
3Q
2010
|
7,500
|
40,000
|
Angola
|
|||||
GSF
Development Driller III (b)
|
HSS
|
Mid-2009
|
7,500
|
30,000
|
Angola
|
(a)
|
Dynamically
positioned.
|
(b)
|
Dual-activity.
|
(c)
|
Currently
without contract.
|
(d)
|
Owned
through our 50 percent interest in a joint venture company with
Pacific Drilling Limited.
|
Name
|
Type
|
Year
entered service/
upgraded(a)
|
Water
depth capacity
(in
feet)
|
Drilling
depth capacity
(in
feet)
|
Location
|
|||||
Ultra-Deepwater
Floaters (b)
(18)
|
||||||||||
Deepwater
Discovery
|
HSD
|
2000
|
10,000
|
30,000
|
Nigeria
|
|||||
Deepwater
Expedition
|
HSD
|
1999
|
10,000
|
30,000
|
Morocco
|
|||||
Deepwater
Frontier
|
HSD
|
1999
|
10,000
|
30,000
|
India
|
|||||
Deepwater
Horizon
|
HSS
|
2001
|
10,000
|
30,000
|
U.S.
Gulf
|
|||||
Deepwater
Millennium
|
HSD
|
1999
|
10,000
|
30,000
|
U.S.
Gulf
|
|||||
Deepwater
Pathfinder
|
HSD
|
1998
|
10,000
|
30,000
|
Nigeria
|
|||||
Discoverer
Deep Seas (c) (d)
|
HSD
|
2001
|
10,000
|
35,000
|
U.S.
Gulf
|
|||||
Discoverer
Enterprise (c) (d)
|
HSD
|
1999
|
10,000
|
35,000
|
U.S.
Gulf
|
|||||
Discoverer
Spirit (c) (d)
|
HSD
|
2000
|
10,000
|
35,000
|
U.S.
Gulf
|
|||||
GSF
C.R. Luigs
|
HSD
|
2000
|
10,000
|
35,000
|
U.S.
Gulf
|
|||||
GSF
Jack Ryan
|
HSD
|
2000
|
10,000
|
35,000
|
Nigeria
|
|||||
Cajun
Express (e)
|
HSS
|
2001
|
8,500
|
35,000
|
U.S.
Gulf
|
|||||
Deepwater
Nautilus (e)
|
HSS
|
2000
|
8,000
|
30,000
|
U.S.
Gulf
|
|||||
GSF
Explorer
|
HSD
|
1972/1998
|
7,800
|
30,000
|
Angola
|
|||||
GSF
Development Driller I (d)
|
HSS
|
2004
|
7,500
|
37,500
|
U.S.
Gulf
|
|||||
GSF
Development Driller II (d)
|
HSS
|
2004
|
7,500
|
37,500
|
U.S.
Gulf
|
|||||
Sedco
Energy (e)
|
HSS
|
2001
|
7,500
|
30,000
|
Nigeria
|
|||||
Sedco
Express (e)
|
HSS
|
2001
|
7,500
|
30,000
|
Angola
|
|||||
Deepwater
Floaters (16)
|
||||||||||
Deepwater
Navigator (b)
|
HSD
|
2000
|
7,200
|
25,000
|
Brazil
|
|||||
Discoverer
534 (b)
|
HSD
|
1975/1991
|
7,000
|
25,000
|
India
|
|||||
Discoverer
Seven Seas (b)
|
HSD
|
1976/1997
|
7,000
|
25,000
|
India
|
|||||
Transocean
Marianas
|
HSS
|
1979/1998
|
7,000
|
25,000
|
U.S.
Gulf
|
|||||
Sedco
702 (b) (f)
|
HSS
|
1973/(f)
|
6,500
|
25,000
|
Nigeria
|
|||||
Sedco
706 (b) (f)
|
HSS
|
1976/(f)
|
6,500
|
25,000
|
Brazil
|
|||||
Sedco
707 (b)
|
HSS
|
1976/1997
|
6,500
|
25,000
|
Brazil
|
|||||
GSF
Celtic Sea
|
HSS
|
1982/1998
|
5,750
|
25,000
|
U.S.
Gulf
|
|||||
Jack
Bates
|
HSS
|
1986/1997
|
5,400
|
30,000
|
Australia
|
|||||
M.G.
Hulme, Jr.
|
HSS
|
1983/1996
|
5,000
|
25,000
|
Nigeria
|
|||||
Sedco
709 (b)
|
HSS
|
1977/1999
|
5,000
|
25,000
|
Nigeria
|
|||||
Transocean
Richardson
|
HSS
|
1988
|
5,000
|
25,000
|
Angola
|
|||||
Jim
Cunningham
|
HSS
|
1982/1995
|
4,600
|
25,000
|
Angola
|
|||||
Sedco
710 (b)
|
HSS
|
1983/2001
|
4,500
|
25,000
|
Brazil
|
|||||
Sovereign
Explorer
|
HSS
|
1984
|
4,500
|
25,000
|
Trinidad
|
|||||
Transocean
Rather
|
HSS
|
1988
|
4,500
|
25,000
|
U.K.
North Sea
|
|||||
Harsh
Environment Floaters
(5)
|
||||||||||
Transocean
Leader
|
HSS
|
1987/1997
|
4,500
|
25,000
|
Norwegian
N. Sea
|
|||||
Henry
Goodrich
|
HSS
|
1985
|
2,000
|
30,000
|
U.S.
Gulf
|
|||||
Paul
B. Loyd, Jr
|
HSS
|
1990
|
2,000
|
25,000
|
U.K.
North Sea
|
|||||
Transocean
Arctic
|
HSS
|
1986
|
1,650
|
25,000
|
Norwegian
N. Sea
|
|||||
Polar
Pioneer
|
HSS
|
1985
|
1,500
|
25,000
|
Norwegian
N. Sea
|
(a)
|
Dates
shown are the original service date and the date of the most recent
upgrade, if any.
|
(b)
|
Dynamically
positioned.
|
(c)
|
Enterprise-class
rig.
|
(d)
|
Dual-activity.
|
(e)
|
Express-class
rig.
|
(f)
|
The
Sedco 702
and
Sedco 706
are
currently being upgraded from Midwater Floaters to Deepwater Floaters. The
water depth and drilling depth capacity information assumes the completion
of the upgrades. The
Sedco 702
and
Sedco 706
are currently expected to complete their upgrades and commence
their contracts in the first quarter and the fourth quarter of 2008,
respectively.
|
Name
|
Type
|
Year
entered service/
upgraded(a)
|
Water
depth capacity
(in
feet)
|
Drilling
depth capacity
(in
feet)
|
Location
|
|||||
Sedco
700
|
OS
|
1973/1997
|
3,600
|
25,000
|
E.
Guinea
|
|||||
Transocean
Amirante
|
OS
|
1978/1997
|
3,500
|
25,000
|
U.S.
Gulf
|
|||||
Transocean
Legend
|
OS
|
1983
|
3,500
|
25,000
|
China
|
|||||
GSF
Arctic I
|
OS
|
1983/1996
|
3,400
|
25,000
|
Brazil
|
|||||
C.
Kirk Rhein, Jr.
|
OS
|
1976/1997
|
3,300
|
25,000
|
India
|
|||||
Transocean
Driller
|
OS
|
1991
|
3,000
|
25,000
|
Brazil
|
|||||
GSF
Rig 135
|
OS
|
1983
|
2,800
|
25,000
|
Congo
|
|||||
Falcon
100
|
OS
|
1974/1999
|
2,400
|
25,000
|
Brazil
|
|||||
GSF
Rig 140
|
OS
|
1983
|
2,400
|
25,000
|
Angola
|
|||||
GSF
Aleutian Key
|
OS
|
1976/2001
|
2,300
|
25,000
|
Angola
|
|||||
Istiglal
(b)
|
OS
|
1995/1998
|
2,300
|
20,000
|
Caspian
Sea
|
|||||
Sedco
703
|
OS
|
1973/1995
|
2,000
|
25,000
|
Australia
|
|||||
GSF
Arctic III
|
OS
|
1984
|
1,800
|
25,000
|
U.K.
North Sea
|
|||||
Sedco
711
|
OS
|
1982
|
1,800
|
25,000
|
U.K.
North Sea
|
|||||
Transocean
John Shaw
|
OS
|
1982
|
1,800
|
25,000
|
U.K.
North Sea
|
|||||
Sedco
712
|
OS
|
1983
|
1,600
|
25,000
|
U.K.
North Sea
|
|||||
Sedco
714
|
OS
|
1983/1997
|
1,600
|
25,000
|
U.K.
North Sea
|
|||||
Actinia
|
OS
|
1982
|
1,500
|
25,000
|
India
|
|||||
Dada
Gorgud (b)
|
OS
|
1978/1998
|
1,500
|
25,000
|
Caspian
Sea
|
|||||
GSF
Arctic IV (c)
|
OS
|
1983/1999
|
1,500
|
25,000
|
U.K.
North Sea
|
|||||
GSF
Grand Banks
|
OS
|
1984
|
1,500
|
25,000
|
East
Canada
|
|||||
Sedco
601
|
OS
|
1983
|
1,500
|
25,000
|
Malaysia
|
|||||
Sedneth
701
|
OS
|
1972/1993
|
1,500
|
25,000
|
Angola
|
|||||
Transocean
Prospect
|
OS
|
1983/1992
|
1,500
|
25,000
|
U.K.
North Sea
|
|||||
Transocean
Searcher
|
OS
|
1983/1988
|
1,500
|
25,000
|
Norwegian
N. Sea
|
|||||
Transocean
Winner
|
OS
|
1983
|
1,500
|
25,000
|
Norwegian
N. Sea
|
|||||
J.
W. McLean
|
OS
|
1974/1996
|
1,250
|
25,000
|
U.K.
North Sea
|
|||||
GSF
Arctic II (c)
|
OS
|
1982
|
1,200
|
25,000
|
U.K.
North Sea
|
|||||
Sedco
704
|
OS
|
1974/1993
|
1,000
|
25,000
|
U.K.
North Sea
|
(a)
|
Dates
shown are the original service date and the date of the most recent
upgrade, if any.
|
(b)
|
Owned
by the State Oil Company of the Azerbaijan
Republic.
|
(c)
|
On
February 15, 2008, we announced our intent to proceed with
divestitures of the
GSF Arctic II
and the
GSF Arctic IV
semisubmersible rigs and the hiring of a third-party advisor. The
divestitures are in furtherance of our previously announced proposed
undertakings to the Office of Fair Trading in the U.K. made in connection
with the Merger. As a result, we classified these rigs as held
for sale.
|
Name
|
Year
entered service/
upgraded(a)
|
Water
depth capacity
(in
feet)
|
Drilling
depth capacity
(in
feet)
|
Location
|
||||
GSF
Constellation I
|
2003
|
400
|
30,000
|
Trinidad
|
||||
GSF
Constellation II
|
2004
|
400
|
30,000
|
Egypt
|
||||
GSF
Galaxy I
|
1991/2001
|
400
|
30,000
|
U.K.
North Sea
|
||||
GSF
Galaxy II
|
1998
|
400
|
30,000
|
U.K.
North Sea
|
||||
GSF
Galaxy III
|
1999
|
400
|
30,000
|
U.K.
North Sea
|
||||
GSF
Baltic
|
1983
|
375
|
25,000
|
Nigeria
|
||||
GSF
Magellan
|
1992
|
350
|
30,000
|
U.K.
North Sea
|
||||
GSF
Monarch
|
1986
|
350
|
30,000
|
U.K.
North Sea
|
||||
GSF
Monitor
|
1989
|
350
|
30,000
|
Trinidad
|
||||
Trident
20
|
2000
|
350
|
25,000
|
Caspian
Sea
|
|
(a)
|
Dates
shown are the original service date and the date of the most recent
upgrades, if any.
|
Name
|
Year
entered service/
upgraded(a)
|
Water
depth capacity
(in
feet)
|
Drilling
depth capacity
(in
feet)
|
Location
|
||||
Trident
IX
|
1982
|
400
|
21,000
|
Vietnam
|
||||
Trident
17
|
1983
|
355
|
25,000
|
Malaysia
|
||||
GSF
Adriatic II
|
1981
|
350
|
25,000
|
Angola
|
||||
GSF
Adriatic III (b)
|
1982
|
350
|
25,000
|
U.S.
Gulf
|
||||
GSF
Adriatic IX
|
1981
|
350
|
20,000
|
Gabon
|
||||
GSF
Adriatic X
|
1982
|
350
|
25,000
|
Egypt
|
||||
GSF
Key Manhattan
|
1980
|
350
|
25,000
|
Egypt
|
||||
GSF
Key Singapore
|
1982
|
350
|
25,000
|
Egypt
|
||||
GSF
Adriatic VI
|
1981
|
328
|
20,000
|
Nigeria
|
||||
GSF
Adriatic VIII
|
1983
|
328
|
25,000
|
Nigeria
|
||||
C.
E. Thornton
|
1974
|
300
|
25,000
|
India
|
||||
D.
R. Stewart
|
1980
|
300
|
25,000
|
Italy
|
||||
F.
G. McClintock
|
1975
|
300
|
25,000
|
India
|
||||
George
H. Galloway
|
1984
|
300
|
25,000
|
Italy
|
||||
GSF
Adriatic I
|
1981
|
300
|
25,000
|
Angola
|
||||
GSF
Adriatic V
|
1979
|
300
|
20,000
|
Angola
|
||||
GSF
Adriatic XI
|
1983
|
300
|
25,000
|
Vietnam
|
||||
GSF
Compact Driller
|
1992
|
300
|
25,000
|
Thailand
|
||||
GSF
Galveston Key
|
1978
|
300
|
25,000
|
Vietnam
|
||||
GSF
Key Gibraltar
|
1976/1996
|
300
|
25,000
|
Thailand
|
||||
GSF
Key Hawaii
|
1982
|
300
|
25,000
|
Qatar
|
||||
GSF
Labrador
|
1983
|
300
|
25,000
|
U.K.
North Sea
|
||||
GSF
Main Pass I
|
1982
|
300
|
25,000
|
Arabian
Gulf
|
||||
GSF
Main Pass IV
|
1982
|
300
|
25,000
|
Arabian
Gulf
|
||||
GSF
Parameswara
|
1983
|
300
|
25,000
|
Indonesia
|
||||
GSF
Rig 134
|
1982
|
300
|
20,000
|
Malaysia
|
||||
GSF
Rig 136
|
1982
|
300
|
25,000
|
Indonesia
|
||||
Harvey
H. Ward
|
1981
|
300
|
25,000
|
Malaysia
|
||||
J.
T. Angel
|
1982
|
300
|
25,000
|
India
|
||||
Randolph
Yost
|
1979
|
300
|
25,000
|
India
|
||||
Roger
W. Mowell
|
1982
|
300
|
25,000
|
Malaysia
|
||||
Ron
Tappmeyer
|
1978
|
300
|
25,000
|
India
|
||||
Shelf
Explorer
|
1982
|
300
|
25,000
|
Vietnam
|
||||
Interocean III
|
1978/1993
|
300
|
20,000
|
Egypt
|
||||
Transocean
Nordic
|
1984
|
300
|
25,000
|
Sakhalin
Island
|
||||
Trident
II
|
1977/1985
|
300
|
25,000
|
India
|
||||
Trident
IV
|
1980/1999
|
300
|
25,000
|
Nigeria
|
||||
Trident
VIII
|
1981
|
300
|
21,000
|
Nigeria
|
||||
Trident
XII
|
1982/1992
|
300
|
25,000
|
India
|
||||
Trident
XIV
|
1982/1994
|
300
|
20,000
|
Angola
|
||||
Trident
15
|
1982
|
300
|
25,000
|
Thailand
|
||||
Trident
16
|
1982
|
300
|
25,000
|
Thailand
|
||||
GSF
High Island II
|
1979
|
270
|
20,000
|
Arabian
Gulf
|
||||
GSF
High Island IV
|
1980/2001
|
270
|
20,000
|
Arabian
Gulf
|
||||
GSF
High Island V
|
1981
|
270
|
20,000
|
Gabon
|
||||
GSF
High Island VII
|
1982
|
250
|
20,000
|
Cameroon
|
||||
GSF
High Island VIII (b)
|
1981
|
250
|
20,000
|
U.S.
Gulf
|
||||
GSF
High Island IX
|
1983
|
250
|
20,000
|
Nigeria
|
||||
GSF
Rig 103
|
1974
|
250
|
20,000
|
U.A.E.
|
||||
GSF
Rig 105
|
1975
|
250
|
20,000
|
Egypt
|
||||
GSF
Rig 124
|
1980
|
250
|
20,000
|
Egypt
|
||||
GSF
Rig 127
|
1981
|
250
|
20,000
|
Qatar
|
||||
GSF
Rig 141
|
1982
|
250
|
20,000
|
Egypt
|
||||
Transocean
Comet
|
1980
|
250
|
20,000
|
Egypt
|
||||
Transocean
Mercury
|
1969/1998
|
250
|
20,000
|
Egypt
|
||||
GSF
Britannia
|
1968
|
230
|
20,000
|
U.K.
North Sea
|
||||
Trident
VI
|
1981
|
220
|
21,000
|
Vietnam
|
(a)
|
Dates
shown are the original service date and the date of the most recent
upgrade, if any.
|
(b)
|
On
February 15, 2008, we entered into a definitive agreement with
Hercules Offshore, Inc. to sell
GSF Adriatic III
,
GSF High Island I
(see "
––
Warm Stacked and Held for Sale
") and
GSF High Island VIII.
As a result, we classified these rigs as held for
sale.
|
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Operating
revenues
|
||||||||||||
United
States
|
$ | 1,259 | $ | 806 | $ | 648 | ||||||
United
Kingdom
|
848 | 439 | 335 | |||||||||
India
|
761 | 291 | 296 | |||||||||
Nigeria
|
587 | 447 | 218 | |||||||||
Other
countries (a)
|
2,922 | 1,899 | 1,395 | |||||||||
Total
operating revenues
|
$ | 6,377 | $ | 3,882 | $ | 2,892 | ||||||
As
of December 31,
|
||||||||||||
2007
|
2006
|
|||||||||||
Long-lived
assets
|
||||||||||||
United
States
|
$ | 5,856 | $ | 2,504 | ||||||||
United
Kingdom
|
2,301 | 457 | ||||||||||
Nigeria
|
1,902 | 856 | ||||||||||
Other
countries (a)
|
10,871 | 3,509 | ||||||||||
Total
long-lived assets
|
$ | 20,930 | $ | 7,326 |
|
§
|
Audit
Committee Charter;
|
|
§
|
Corporate
Governance Committee Charter;
|
|
§
|
Executive
Compensation Committee Charter;
|
|
§
|
Finance
and Benefits Committee Charter;
|
|
§
|
Mission
Statement;
|
|
§
|
Code
of Business Conduct and Ethics, including our anti-corruption policy;
and
|
|
§
|
Corporate
Governance Guidelines.
|
ITEM
1A.
|
Risk Fa
ctors
|
|
§
|
worldwide
demand for oil and gas including economic activity in the U.S. and other
energy-consuming markets;
|
|
§
|
the
ability of OPEC to set and maintain production levels and
pricing;
|
|
§
|
the
level of production in non-OPEC
countries;
|
|
§
|
the
policies of various governments regarding exploration and development of
their oil and gas reserves;
|
|
§
|
advances
in exploration and development technology;
and
|
|
§
|
the
worldwide military and political environment, including uncertainty or
instability resulting from an escalation or additional outbreak of armed
hostilities or other crises in the Middle East or other geographic areas
or further acts of terrorism in the United States, or
elsewhere.
|
|
§
|
shipyard
unavailability;
|
|
§
|
shortages
of equipment, materials or skilled
labor;
|
|
§
|
unscheduled
delays in the delivery of ordered materials and
equipment;
|
|
§
|
engineering
problems, including those relating to the commissioning of newly designed
equipment;
|
|
§
|
work
stoppages;
|
|
§
|
client
acceptance delays;
|
|
§
|
weather
interference or storm damage;
|
|
§
|
unanticipated
cost increases; and
|
|
§
|
difficulty
in obtaining necessary permits or
approvals.
|
|
§
|
we
may not be able to obtain financing in the future for working capital,
capital expenditures, acquisitions, debt service requirements or other
purposes;
|
|
§
|
we
may not be able to use operating cash flow in other areas of our business
because we must dedicate a substantial portion of these funds to service
the debt;
|
|
§
|
we
could become more vulnerable to general adverse economic and industry
conditions, including increases in interest rates, particularly given our
substantial indebtedness, some of which bears interest at variable
rates;
|
|
§
|
less
levered competitors could have a competitive advantage because they have
lower debt service requirements;
and
|
|
§
|
we
may be less able to take advantage of significant business opportunities
and to react to changes in market or industry conditions than our
competitors.
|
|
§
|
terrorist
acts, war and civil disturbances;
|
|
§
|
expropriation
or nationalization of equipment;
and
|
|
§
|
the
inability to repatriate income or
capital.
|
|
§
|
classify
our board into three classes of directors, each of which serve for
staggered three-year periods;
|
|
§
|
provide
that our board may designate the terms of any new series of preference
shares;
|
|
§
|
provide
that any shareholder who wishes to propose any business or to nominate a
person or persons for election as director at any annual meeting may only
do so if advance notice is given to the Secretary of
Transocean;
|
|
§
|
provide
that the exact number of directors on our board can be set from time to
time by a majority of the whole board of directors and not by our
shareholders, subject to a minimum of two and a maximum of
14;
|
|
§
|
provide
that directors can be removed from office only for cause, as defined in
our articles of association, by the affirmative vote of the holders of the
issued shares generally entitled to
vote;
|
|
§
|
provide
that any vacancy on the board of directors will be filled by the
affirmative vote of the remaining directors and not by the shareholders;
provided, however, that during the period until November 27, 2009, if
the vacancy relates to a director who was a Transocean director prior to
the Merger, then the vacancy will be filled by the other Transocean
directors, and if the vacancy relates to a director who was a
GlobalSantaFe director prior to the Merger, then the vacancy will be
filled by the other GlobalSantaFe
directors;
|
|
§
|
provide
that any action required or permitted to be taken by the holders of
ordinary shares must be taken at a duly called annual or extraordinary
general meeting of shareholders unless taken by written consent of all
holders of ordinary shares;
|
|
§
|
provide
that only a majority of the directors may call extraordinary general
meetings of the shareholders;
|
|
§
|
limit
the ability of our shareholders to amend or repeal some provisions of our
articles of association; and
|
|
§
|
limit
transactions between us and an "interested shareholder," which is
generally defined as a shareholder that, together with its affiliates and
associates, beneficially, directly or indirectly, owns 15 percent or
more of our issued voting shares.
|
ITEM
1B.
|
Unresolved Staff Com
ments
|
ITEM
2.
|
Prope
rties
|
ITEM
3.
|
Legal Procee
dings
|
|
§
|
the
actual responsibility attributed to us and the other PRPs at the
site;
|
|
§
|
appropriate
investigatory and/or remedial actions;
and
|
|
§
|
allocation
of the costs of such activities among the PRPs and other site
users.
|
|
§
|
the
volume and nature of material, if any, contributed to the site for which
we are responsible;
|
|
§
|
the
numbers of other PRPs and their financial viability;
and
|
|
§
|
the
remediation methods and technology to be
used.
|
ITEM
4.
|
Submission of Matters to a
Vote of Security
Holders
|
|
(i)
|
With
respect to the approval of a scheme of arrangement providing for the
Reclassification, the following number of votes were
cast:
|
For
|
Against /
authority
withheld
|
Abstain
|
||
213,967,649
|
938,988
|
2,016,530
|
|
(ii)
|
With
respect to the approval of the issuance of our ordinary shares to
GlobalSantaFe shareholders in the Merger, the following number of votes
were cast:
|
For
|
Against /
authority
withheld
|
Abstain
|
||
213,970,926
|
1,038,212
|
1,914,029
|
|
(iii)
|
With
respect to the approval of the amendment and restatement of our memorandum
of association and articles of association, the following number of
votes were cast:
|
For
|
Against /
authority
withheld
|
Abstain
|
||
213,957,432
|
1,017,437
|
1,948,298
|
Age
as of
|
||
Officer
|
Office
|
February 27,
2008
|
Robert
L. Long
|
Chief
Executive Officer
|
62
|
Jon
A. Marshall
|
President
and Chief Operating Officer
|
56
|
Jean
P. Cahuzac
|
Executive
Vice President, Assets
|
54
|
Steven
L. Newman
|
Executive
Vice President, Performance
|
43
|
Eric
B. Brown
|
Senior
Vice President and General Counsel
|
56
|
Gregory
L. Cauthen
|
Senior
Vice President and Chief Financial Officer
|
50
|
David
J. Mullen
|
Senior
Vice President, Marketing and Planning
|
50
|
Cheryl
D. Richard
|
SeSenior
Vice President, Human Resources and Information Technology
|
51
|
John
H. Briscoe
|
Vice
President and Controller
|
50
|
ITEM
5.
|
Market for Regi
strant
’s Common Equity, Related Shareholder
Matters
and
Issuer Purchases of Equity
Securities
|
Price
|
||||||||
High
|
Low
|
|||||||
2006
|
||||||||
First
quarter (a)
|
$ | 84.29 | $ | 70.05 | ||||
Second
quarter (a)
|
90.16 | 70.75 | ||||||
Third
quarter (a)
|
81.63 | 64.52 | ||||||
Fourth
quarter (a)
|
84.23 | 65.57 | ||||||
2007
|
||||||||
First
quarter (a)
|
$ | 83.20 | $ | 72.47 | ||||
Second
quarter (a)
|
109.20 | 80.50 | ||||||
Third
quarter (a)
|
120.88 | 92.61 | ||||||
Fourth
quarter
|
149.62 | 107.37 |
(a)
|
The
stock prices presented reflect the historical market prices and have not
been restated to reflect the effects of the Reclassification or the
Merger.
|
Issuer
Purchases of Equity Securities
|
||||||||||||||||
Period
|
Total
Number
of
Shares
Purchased
(1)
|
Average
Price
Paid
Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(2)
|
Maximum
Number
(or
Approximate Dollar Value) of Shares that May Yet Be Purchased Under the
Plans or Programs (2)
(in
millions)
|
||||||||||||
October 2007
|
— | $ | — | — | 600 | |||||||||||
November 2007
|
203,333 | 133.82 | — | 600 | ||||||||||||
December 2007
|
1,636 | 136.61 | — | 600 | ||||||||||||
Total
|
204,969 | $ | 133.84 | — | 600 |
(1)
|
Total
number of shares purchased in the fourth quarter of 2007 consists of
shares withheld by us in satisfaction of withholding taxes due upon the
vesting of restricted shares granted to our employees under our Long-Term
Incentive Plan to pay withholding taxes due upon vesting of a restricted
share award.
|
(2)
|
In
May 2006, our board of directors authorized an increase in the amount of
ordinary shares which may be repurchased pursuant to our share repurchase
program to $4.0 billion from $2.0 billion, which was previously
authorized and announced in October 2005. The shares may
be repurchased from time to time in open market or private
transactions. The repurchase program does not have an
established expiration date and may be suspended or discontinued at any
time. Under the program, repurchased shares are retired and
returned to unissued status. From inception through
December 31, 2007, we have repurchased a total of
46.9 million of our ordinary shares at a total cost of
$3.4 billion. We do not currently expect to make any
additional share repurchases under the program in the near
future.
|
ITEM
6.
|
Selected
Financial
Data
|
Years
ended December 31,
|
||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||
(In
millions, except per share data)
|
||||||||||||||||||||
Statement
of operations data
|
||||||||||||||||||||
Operating
revenues
|
$ | 6,377 | $ | 3,882 | $ | 2,892 | $ | 2,614 | $ | 2,434 | ||||||||||
Operating
income
|
3,239 | 1,641 | 720 | 328 | 240 | |||||||||||||||
Net
income (a)
|
3,131 | 1,385 | 716 | 152 | 19 | |||||||||||||||
Earnings
per share
|
||||||||||||||||||||
Basic
|
$ | 14.65 | $ | 6.32 | $ | 3.13 | $ | 0.68 | $ | 0.08 | ||||||||||
Diluted
|
$ | 14.14 | $ | 6.10 | $ | 3.03 | $ | 0.67 | $ | 0.08 | ||||||||||
Balance
sheet data (at end of period)
|
||||||||||||||||||||
Total
assets
|
$ | 34,364 | $ | 11,476 | $ | 10,457 | $ | 10,758 | $ | 11,663 | ||||||||||
Debt
due within one year
|
6,172 | 95 | 400 | 19 | 46 | |||||||||||||||
Long-term
debt
|
11,085 | 3,203 | 1,197 | 2,462 | 3,612 | |||||||||||||||
Total
shareholders’ equity
|
12,566 | 6,836 | 7,982 | 7,393 | 7,193 | |||||||||||||||
Other
financial data
|
||||||||||||||||||||
Cash
provided by operating activities
|
$ | 3,073 | $ | 1,237 | $ | 864 | $ | 600 | $ | 525 | ||||||||||
Cash
provided by (used in) investing activities
|
(5,677 | ) | (415 | ) | 169 | 551 | (445 | ) | ||||||||||||
Cash
provided by (used in) financing activities
|
3,378 | (800 | ) | (1,039 | ) | (1,174 | ) | (820 | ) | |||||||||||
Capital
expenditures
|
1,380 | 876 | 182 | 127 | 494 | |||||||||||||||
Operating
margin
|
51 | % | 42 | % | 25 | % | 13 | % | 10 | % |
(a)
|
In
the year ended December 31, 2003, we recorded a cumulative effect of
an accounting change in the amount of $1 million, with no effect on basic
or diluted earnings per share.
|
ITEM
7.
|
Manag
ement
’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions, except average daily revenue and percentages)
|
||||||||||||
Average
daily revenue
(a)
(b)
|
$ | 211,900 | $ | 142,100 | $ | 69,800 | ||||||
Utilization
(b)
(c)
|
90 | % | 84 | % | n/a | |||||||
Statement
of operations data
|
||||||||||||
Operating
revenues
|
$ | 6,377 | $ | 3,882 | $ | 2,495 | ||||||
Operating
and maintenance expenses
|
2,781 | 2,155 | 626 | |||||||||
Operating
income
|
3,239 | 1,641 | 1,598 | |||||||||
Net
income
|
3,131 | 1,385 | 1,746 | |||||||||
Balance
sheet data (at end of period)
|
||||||||||||
Cash
and cash equivalents
|
1,241 | 467 | 774 | |||||||||
Total
assets
|
34,364 | 11,476 | 22,888 | |||||||||
Total
debt
|
17,257 | 3,298 | 13,959 |
(a)
|
Average
daily revenue is defined as contract drilling revenue earned per revenue
earning day. A revenue earning day is defined as a day for
which a rig earns dayrate after commencement of
operations.
|
(b)
|
Excludes
a drillship engaged in scientific geological coring activities, the
Joides Resolution
,
that is owned by a joint venture in which we have a 50 percent
interest and is accounted for under the equity method of
accounting.
|
(c)
|
Utilization
is the total actual number of revenue earning days as a percentage of
the total number of calendar days in the
period.
|
December
31, 2007
|
December
31, 2006
|
|||||||
(In
millions)
|
||||||||
Contract
backlog
|
||||||||
High-Specification
Floaters
|
$ | 20,708 | $ | 14,354 | ||||
Midwater
Floaters
|
5,728 | 3,770 | ||||||
High-Specification
Jackups
|
768 | 140 | ||||||
Standard
Jackups
|
4,445 | 1,897 | ||||||
Other
Rigs
|
158 | 65 | ||||||
Total
|
$ | 31,807 | $ | 20,226 |
For
the years ending December 31,
|
||||||||||||||||||||||||
Total
|
2008
|
2009
|
2010
|
2011
|
Thereafter
|
|||||||||||||||||||
(In
millions, except average dayrates)
|
||||||||||||||||||||||||
Contract
backlog
|
||||||||||||||||||||||||
High-Specification
Floaters
|
$ | 20,708 | $ | 4,599 | $ | 4,814 | $ | 4,017 | $ | 2,643 | $ | 4,635 | ||||||||||||
Midwater
Floaters
|
5,728 | 2,650 | 1,806 | 869 | 263 | 140 | ||||||||||||||||||
High-Specification
Jackups
|
768 | 478 | 273 | 17 | — | — | ||||||||||||||||||
Standard
Jackups
|
4,445 | 2,322 | 1,229 | 592 | 297 | 5 | ||||||||||||||||||
Other
Rigs
|
158 | 52 | 36 | 26 | 26 | 18 | ||||||||||||||||||
Total
|
$ | 31,807 | $ | 10,101 | $ | 8,158 | $ | 5,521 | $ | 3,229 | $ | 4,798 | ||||||||||||
Average
Dayrates
|
Total
|
2008
|
2009
|
2010
|
2011
|
Thereafter
|
||||||||||||||||||
High-Specification
Floaters
|
$ | 404,000 | $ | 353,000 | $ | 393,000 | $ | 416,000 | $ | 443,000 | $ | 439,000 | ||||||||||||
Midwater
Floaters
|
301,000 | 294,000 | 315,000 | 298,000 | 323,000 | 249,000 | ||||||||||||||||||
High-Specification
Jackups
|
154,000 | 150,000 | 158,000 | 188,000 | — | — | ||||||||||||||||||
Standard
Jackups
|
154,000 | 153,000 | 156,000 | 155,000 | 148,000 | 102,000 | ||||||||||||||||||
Other
Rigs
|
60,000 | 50,000 | 56,000 | 68,000 | 68,000 | 65,000 | ||||||||||||||||||
Total
|
$ | 270,000 | $ | 234,000 | $ | 270,000 | $ | 293,000 | $ | 304,000 | $ | 397,000 |
Three
months ended
|
||||||||||||
December
31,
2007
|
September
30,
2007
|
December
31,
2006
|
||||||||||
Average
daily revenue
|
||||||||||||
High-Specification
Floaters
|
||||||||||||
Ultra-Deepwater
Floaters
|
$ | 346,100 | $ | 323,200 | $ | 275,300 | ||||||
Deepwater
Floaters
|
$ | 265,300 | $ | 251,600 | $ | 216,500 | ||||||
Harsh
Environment Floaters
|
$ | 326,300 | $ | 312,300 | $ | 199,400 | ||||||
Total
High-Specification Floaters
|
$ | 311,600 | $ | 291,900 | $ | 237,800 | ||||||
Midwater
Floaters
|
$ | 274,600 | $ | 254,000 | $ | 184,600 | ||||||
High-Specification
Jackups
|
$ | 173,400 | $ | 131,600 | $ | 133,300 | ||||||
Standard
Jackups
|
$ | 130,800 | $ | 120,000 | $ | 95,300 | ||||||
Other
Rigs
|
$ | 48,600 | $ | 54,900 | $ | 48,200 | ||||||
Total
fleet average daily revenue
|
$ | 224,000 | $ | 219,700 | $ | 171,700 | ||||||
Utilization
|
||||||||||||
High-Specification
Floaters
|
||||||||||||
Ultra-Deepwater
Floaters
|
97 | % | 99 | % | 92 | % | ||||||
Deepwater
Floaters
|
75 | % | 76 | % | 78 | % | ||||||
Harsh
Environment Floaters
|
80 | % | 85 | % | 97 | % | ||||||
Total
High-Specification Floaters
|
85 | % | 86 | % | 86 | % | ||||||
Midwater
Floaters
|
95 | % | 92 | % | 90 | % | ||||||
High-Specification
Jackups
|
100 | % | 100 | % | 100 | % | ||||||
Standard
Jackups
|
91 | % | 89 | % | 89 | % | ||||||
Other
Rigs
|
97 | % | 98 | % | 99 | % | ||||||
Total
fleet average utilization
|
90 | % | 89 | % | 89 | % |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from operating activities
|
||||||||||||
Net
income
|
$ | 3,131 | $ | 1,385 | $ | 1,746 | ||||||
Depreciation,
depletion and amortization
|
411 | 401 | 10 | |||||||||
Other
non-cash items
|
(231 | ) | (480 | ) | 249 | |||||||
Working
capital changes
|
(238 | ) | (69 | ) | (169 | ) | ||||||
$ | 3,073 | $ | 1,237 | $ | 1,836 |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from investing activities
|
||||||||||||
Capital
expenditures
|
$ | (1,380 | ) | $ | (876 | ) | $ | (504 | ) | |||
Consideration
paid to GlobalSantaFe shareholders
|
(5,129 | ) | — | (5,129 | ) | |||||||
Cash
balances acquired in connection with the Merger
|
695 | — | 695 | |||||||||
Proceeds
from disposal of assets, net
|
379 | 461 | (82 | ) | ||||||||
Joint
ventures and other investments, net
|
(242 | ) | — | (242 | ) | |||||||
$ | (5,677 | ) | $ | (415 | ) | $ | (5,262 | ) |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from financing activities
|
||||||||||||
Borrowings
under 364-Day Revolving Credit Facility
|
$ | 1,500 | $ | — | $ | 1,500 | ||||||
Borrowings
under other credit facilities
|
15,000 | 1,000 | 14,000 | |||||||||
Repayments
under other credit facilities
|
(12,030 | ) | (300 | ) | (11,730 | ) | ||||||
Proceeds
from issuance of debt
|
9,095 | 1,000 | 8,095 | |||||||||
Repayments
of debt
|
(3 | ) | — | (3 | ) | |||||||
Financing
costs
|
(106 | ) | (5 | ) | (101 | ) | ||||||
Payment
to shareholders for Reclassification of ordinary shares
|
(9,859 | ) | — | (9,859 | ) | |||||||
Proceeds
from issuance of ordinary shares upon exercise of warrants
|
40 | — | 40 | |||||||||
Proceeds
from issuance of ordinary shares under share-based compensation plans,
net
|
72 | 69 | 3 | |||||||||
Repurchase
of ordinary shares
|
(400 | ) | (2,601 | ) | 2,201 | |||||||
Tax
benefit from issuance of ordinary shares under share-based compensation
plans
|
70 | 7 | 63 | |||||||||
Other,
net
|
(1 | ) | 30 | (31 | ) | |||||||
$ | 3,378 | $ | (800 | ) | $ | 4,178 |
Total
costs through December 31, 2007
|
Expected
costs for the year ending December 31, 2008
|
Estimated
costs
thereafter
|
Total
estimated cost at
completion
|
|||||||||||||
Discoverer
Clear Leader
|
$ | 409 | $ | 210 | $ | 30 | $ | 649 | ||||||||
Sedco
700-series upgrades
|
396 | 200 | — | 596 | ||||||||||||
GSF
Development Driller III (a)
|
369 | 170 | 50 | 589 | ||||||||||||
Discoverer
Americas
|
301 | 190 | 130 | 621 | ||||||||||||
Deepwater Pacific 1
(b)
|
279 | 130 | 270 | 679 | ||||||||||||
Discoverer
Inspiration
|
248 | 190 | 230 | 668 | ||||||||||||
Deepwater Pacific 2
(b)
|
179 | 190 | 290 | 659 | ||||||||||||
GSF
Newbuild (a)
|
109 | 120 | 510 | 739 | ||||||||||||
Discoverer
Luanda
|
107 | 230 | 300 | 637 | ||||||||||||
Capitalized
Interest
|
92 | 130 | 150 | 372 | ||||||||||||
Total
|
$ | 2,489 | $ | 1,760 | $ | 1,960 | $ | 6,209 |
(a)
|
These
costs include our initial investments in the
GSF Development Driller III
and GSF Newbuild of $356 million and $109 million,
respectively, representing the estimated fair values of the rigs at the
time of the Merger.
|
(b)
|
The
costs for
Deepwater Pacific 1
and
Deepwater Pacific 2
represent 100 percent of expenditures incurred prior to our
investment in the joint venture ($277 million and $178 million,
respectively), 100 percent of expenditures incurred since our
investment in the joint venture and 100 percent of expenditures to be
incurred. However, Pacific Drilling shares 50 percent of
these costs.
|
For
the years ending December 31,
|
||||||||||||||||||||
Total
|
2008
|
2009-2010 | 2011-2012 |
Thereafter
|
||||||||||||||||
(In millions)
|
||||||||||||||||||||
Contractual
obligations
|
||||||||||||||||||||
Debt
|
$ | 17,230 | $ | 6,170 | $ | 2,200 | $ | 4,566 | $ | 4,294 | ||||||||||
Interest
on debt
|
5,651 | 686 | 782 | 659 | 3,524 | |||||||||||||||
Operating
leases
|
110 | 30 | 40 | 19 | 21 | |||||||||||||||
Capital
lease
|
32 | 2 | 4 | 4 | 22 | |||||||||||||||
Stock
warrant consideration payable
|
48 | — | 48 | — | — | |||||||||||||||
Purchase
obligations
|
2,589 | 1,164 | 1,425 | — | — | |||||||||||||||
Defined
benefit pension plans
|
13 | 8 | 5 | — | — | |||||||||||||||
Total
|
$ | 25,673 | $ | 8,060 | $ | 4,504 | $ | 5,248 | $ | 7,861 |
For
the years ending December 31,
|
||||||||||||||||||||
Total
|
2008
|
2009-2010 | 2011-2012 |
Thereafter
|
||||||||||||||||
(In millions)
|
||||||||||||||||||||
Other
commercial commitments
|
||||||||||||||||||||
Standby
letters of credit
|
$ | 532 | $ | 389 | $ | 102 | $ | 31 | $ | 10 | ||||||||||
Surety
bonds
|
24 | 23 | 1 | — | — | |||||||||||||||
Total
|
$ | 556 | $ | 412 | $ | 103 | $ | 31 | $ | 10 |
Years
ended
|
||||||||||||||||
December
31,
|
||||||||||||||||
2007
|
2006
|
Change
|
%
Change
|
|||||||||||||
(In
millions, except day amounts and percentages)
|
||||||||||||||||
Revenue
earning days
|
28,074 | 26,361 | 1,713 | 6 | % | |||||||||||
Utilization
|
90 | % | 84 | % | n/a | 6 | % | |||||||||
Average
daily revenue
|
$ | 211,900 | $ | 142,100 | $ | 69,800 | 49 | % | ||||||||
Contract
drilling revenues
|
$ | 5,948 | $ | 3,745 | $ | 2,203 | 59 | % | ||||||||
Contract
intangible revenues
|
88 | — | 88 | 100 | % | |||||||||||
Other
revenues
|
341 | 137 | 204 | n/m | ||||||||||||
6,377 | 3,882 | 2,495 | 64 | % | ||||||||||||
Operating
and maintenance expense
|
(2,781 | ) | (2,155 | ) | (626 | ) | 29 | % | ||||||||
Depreciation,
depletion and amortization
|
(499 | ) | (401 | ) | (98 | ) | 24 | % | ||||||||
General
and administrative expense
|
(142 | ) | (90 | ) | (52 | ) | 58 | % | ||||||||
Gain
from disposal of assets, net
|
284 | 405 | (121 | ) | 30 | % | ||||||||||
Operating
income
|
3,239 | 1,641 | 1,598 | 97 | % | |||||||||||
Other
income (expense), net
|
||||||||||||||||
Interest
income
|
30 | 21 | 9 | 43 | % | |||||||||||
Interest
expense, net of amounts capitalized
|
(172 | ) | (115 | ) | (57 | ) | 50 | % | ||||||||
Loss
on retirement of debt
|
(8 | ) | — | (8 | ) | (100 | )% | |||||||||
Other,
net
|
295 | 60 | 235 | n/m | ||||||||||||
Income
tax expense
|
(253 | ) | (222 | ) | (31 | ) | 14 | % | ||||||||
Net
income
|
$ | 3,131 | $ | 1,385 | $ | 1,746 | n/m |
Value
of Transocean shares issued to GlobalSantaFe shareholders
|
$ | 12,229 | ||
Cash
consideration to GlobalSantaFe shareholders
|
5,094 | |||
Fair
value of converted GlobalSantaFe stock options and stock appreciation
rights
|
157 | |||
Transocean
transaction costs
|
35 | |||
Total
purchase price
|
$ | 17,515 |
Historical
net book value of GlobalSantaFe
|
$ | 5,776 | ||
Fair
value adjustment of property and equipment—contract drilling services,
net
|
7,385 | |||
Fair
value adjustment of property and equipment—oil and gas properties,
net
|
55 | |||
Fair
value adjustment of materials and supplies, net
|
138 | |||
Fair
value adjustment of defined benefit plans, net
|
31 | |||
Elimination
of historical deferred revenues associated with contract drilling
services
|
107 | |||
Elimination
of historical deferred expenses associated with contract drilling
services
|
(34 | ) | ||
Adjustment
to deferred income taxes resulting from various pro forma adjustments,
net
|
(530 | ) | ||
Severance
costs for legacy GlobalSantaFe affected employees.
|
(25 | ) | ||
Adjustment
to goodwill—contract drilling services
|
5,400 | |||
Adjustment
to goodwill—drilling management services
|
260 | |||
Adjustment
to goodwill— oil and gas properties
|
23 | |||
Drilling
contract intangibles, net
|
(1,303 | ) | ||
Other
intangible items, net
|
239 | |||
Other,
net
|
(7 | ) | ||
Total
purchase price
|
$ | 17,515 |
Years
ended
|
||||||||||||||||
December
31,
|
||||||||||||||||
2006
|
2005
|
Change
|
%
Change
|
|||||||||||||
(In
millions, except day amounts and percentages)
|
||||||||||||||||
Revenue
earning days
|
26,361 | 26,224 | 137 | 1 | % | |||||||||||
Utilization
|
84 | % | 79 | % | n/a | 5 | % | |||||||||
Average
daily revenue
|
$ | 142,100 | $ | 105,100 | $ | 37,000 | 35 | % | ||||||||
Contract
drilling revenues
|
$ | 3,745 | $ | 2,757 | $ | 988 | 36 | % | ||||||||
Other
revenues
|
137 | 135 | 2 | 1 | % | |||||||||||
3,882 | 2,892 | 990 | 34 | % | ||||||||||||
Operating
and maintenance expense
|
(2,155 | ) | (1,720 | ) | (435 | ) | 25 | % | ||||||||
Depreciation
|
(401 | ) | (406 | ) | 5 | (1 | )% | |||||||||
General
and administrative expense
|
(90 | ) | (75 | ) | (15 | ) | 20 | % | ||||||||
Gain
from disposal of assets, net
|
405 | 29 | 376 | n/m | ||||||||||||
Operating
income
|
1,641 | 720 | 921 | n/m | ||||||||||||
Other
income (expense), net
|
||||||||||||||||
Interest
income
|
21 | 19 | 2 | 11 | % | |||||||||||
Interest
expense, net of capitalized interest
|
(115 | ) | (111 | ) | (4 | ) | 4 | % | ||||||||
Gain
from TODCO stock sales
|
— | 165 | (165 | ) | (100 | )% | ||||||||||
Loss
on retirement of debt
|
— | (7 | ) | 7 | (100 | )% | ||||||||||
Other,
net
|
60 | 17 | 43 | n/m | ||||||||||||
Income
tax expense
|
(222 | ) | (87 | ) | (135 | ) | n/m | |||||||||
Net
income
|
$ | 1,385 | $ | 716 | $ | 669 | 93 | % |
At
December 31, 2006
|
||||||||||||
Prior
to adopting SFAS 158
|
Effect
of adopting SFAS 158
|
As
reported
|
||||||||||
Other
assets
|
$ | 322 | $ | (23 | ) | $ | 299 | |||||
Other
current liabilities
|
366 | 3 | 369 | |||||||||
Deferred
income taxes, net
|
60 | (6 | ) | 54 | ||||||||
Other
long-term liabilities
|
337 | 6 | 343 | |||||||||
Accumulated
other comprehensive loss
|
(4 | ) | (26 | ) | (30 | ) |
U.S. Plans
|
Norway Plans
|
Other Non- U.S. Plans
|
Assumed U.S. Pension Plans
|
Assumed U.K. Pension Plans
|
Total Transocean Plans
|
||||||||||||||||||||
Accumulated
Benefit Obligation
|
|||||||||||||||||||||||||
At
December 31, 2007
|
$ | 265 | $ | 58 | $ | 5 | $ | 404 | $ | 207 | $ | 939 | |||||||||||||
At
December 31, 2006
|
243 | 43 | 4 | — | — | 290 | |||||||||||||||||||
Projected
Benefit Obligation
|
|||||||||||||||||||||||||
At
December 31, 2007
|
$ | 313 | $ | 71 | $ | 9 | $ | 444 | $ | 228 | $ | 1,065 | |||||||||||||
At
December 31, 2006
|
276 | 69 | 6 | — | — | 351 | |||||||||||||||||||
Fair
Value of Plan Assets
|
|||||||||||||||||||||||||
At
December 31, 2007
|
$ | 235 | $ | 60 | $ | — | $ | 397 | $ | 247 | $ | 939 | |||||||||||||
At
December 31, 2006
|
223 | 50 | — | — | — | 273 | |||||||||||||||||||
Funded
Status
|
|||||||||||||||||||||||||
At
December 31, 2007
|
$ | (78 | ) | $ | (11 | ) | $ | (9 | ) | $ | (47 | ) | $ | 19 | $ | (126 | ) | ||||||||
At
December 31, 2006
|
(53 | ) | (19 | ) | (6 | ) | — | — | (78 | ) | |||||||||||||||
Net
Periodic Benefit Cost
|
|||||||||||||||||||||||||
Year
ended December 31, 2007
|
$ | 16 | $ | 8 | $ | 2 | $ | — | $ |
1
|
$ | 27 |
(a)
|
||||||||||||
Year
ended December 31, 2006
|
18 | 6 | 2 | — | — | 26 |
(a)
|
||||||||||||||||||
Change
in Accumulated Other Comprehensive Income
|
|||||||||||||||||||||||||
Year
ended December 31, 2007
|
$ | 23 | $ | (9 | ) | $ | — | $ | (2 | ) | $ | — | $ | 12 | |||||||||||
Year
ended December 31, 2006
|
(4 | ) | 11 | (1 | ) | — | — | 6 | |||||||||||||||||
Employer
Contributions
|
|||||||||||||||||||||||||
Year
ended December 31, 2007
|
$ | 14 | $ | 6 | $ | 1 | $ | — | $ | 1 | $ | 22 | |||||||||||||
Year
ended December 31, 2006
|
5 | 9 | 1 | — | — | 15 | |||||||||||||||||||
Weighted-Average
Assumptions – Benefit Obligations
|
|||||||||||||||||||||||||
Discount
rate
|
|||||||||||||||||||||||||
At
December 31, 2007
|
6.02 | % | 5.30 | % | 12.90 | % | 6.19 | % | 5.90 | % | 6.07 | % |
(b)
|
||||||||||||
At
December 31, 2006
|
5.79 | % | 4.80 | % | 12.21 | % | — | — | 5.72 | % |
(b)
|
||||||||||||||
Rate
of compensation increase
|
|||||||||||||||||||||||||
At
December 31, 2007
|
4.18 | % | 4.50 | % | 11.17 | % | 4.74 | % | 4.40 | % | 4.57 | % |
(b)
|
||||||||||||
At
December 31, 2006
|
4.19 | % | 4.00 | % | 10.29 | % | — | — | 4.27 | % |
(b)
|
U.S.
Plans
|
Norway
Plans
|
Other
Non- U.S. Plans
|
Assumed
U.S. Pension Plans
|
Assumed
U.K. Pension Plans
|
Total
Transocean Plans
|
||||||||||||||||||||
Weighted-Average
Assumptions – Net Periodic Benefit Cost
|
|||||||||||||||||||||||||
Discount
rate
|
|||||||||||||||||||||||||
Year
ended December 31, 2007
|
5.79 | % | 4.80 | % | 13.27 | % | 6.06 | % | 5.90 | % | 5.90 | % |
(b)
|
||||||||||||
Year
ended December 31, 2006
|
5.58 | % | 5.50 | % | 13.00 | % | — | — | 5.69 | % |
(b)
|
||||||||||||||
Expected
long-term rate of return on plan assets
|
|||||||||||||||||||||||||
Year
ended December 31, 2007
|
9.00 | % | 5.40 | % | — | 9.00 | % | 7.50 | % | 8.40 | % |
(c)
|
|||||||||||||
Year
ended December 31, 2006
|
9.00 | % | 6.00 | % | — | — | — | 8.49 | % |
(c)
|
|||||||||||||||
Rate
of compensation increase
|
|||||||||||||||||||||||||
Year
ended December 31, 2007
|
4.18 | % | 4.00 | % | 11.17 | % | 4.75 | % | 4.40 | % | 4.59 | % |
(b)
|
||||||||||||
Year
ended December 31, 2006
|
4.71 | % | 3.50 | % | 10.29 | % | — | — | 4.54 | % |
(b)
|
(a)
|
Pension
costs were reduced by expected returns on plan assets of $26 million
and $20 million for the years ended December 31, 2007 and 2006,
respectively.
|
(b)
|
Weighted-average based on
relative average projected benefit obligation for the
year.
|
(c)
|
Weighted-average based on
relative average fair value of plan assets for the
year.
|
Years
ended December 31,
|
||||||||
2007
|
2006
|
|||||||
Components
of Net Periodic Benefit Cost (a)
|
||||||||
Service
cost
|
$ | 22 | $ | 20 | ||||
Interest
cost
|
24 | 19 | ||||||
Expected
return on plan assets
|
(26 | ) | (20 | ) | ||||
Recognized
net actuarial losses
|
5 | 5 | ||||||
Amortization
of prior service cost
|
1 | 1 | ||||||
Amortization
of net transition obligation
|
1 | 1 | ||||||
SFAS 88
settlements/curtailments
|
– | – | ||||||
Benefit
cost
|
$ | 27 | $ | 26 |
Years ending December
31,
|
||||
2008
|
$ | 2 | ||
2009
|
2 | |||
2010
|
2 | |||
2011
|
2 | |||
2012
|
2 | |||
2013-2017
|
11 |
ITEM
7A.
|
Quantitative and Q
ualita
tive Disclosures About Market
Risk
|
Scheduled
Maturity Date (a) (b)
|
Fair
Value
|
|||||||||||||||||||||||||||||||
2008
|
2009
|
2010
|
2011
|
2012
|
Thereafter
|
Total
|
12/31/07
|
|||||||||||||||||||||||||
Total
debt
|
||||||||||||||||||||||||||||||||
Fixed
rate
|
$ | 2 | $ | — | $ | 2,200 | $ | 2,366 | $ | 2,201 | $ | 4,067 | $ | 10,836 | $ | 11,524 | ||||||||||||||||
Average
interest rate
|
9.8 | % | 9.8 | % | 1.6 | % | 1.9 | % | 1.5 | % | 6.5 | % | 3.5 | % | ||||||||||||||||||
Variable
rate
|
$ | 6,170 | $ | — | $ | — | $ | — | $ | — | $ | 238 | $ | 6,408 | $ | 6,408 | ||||||||||||||||
Average
interest rate
|
5.4 | % | — | % | — | % | — | % | — | % | 6.6 | % | 5.4 | % |
(a)
|
Maturity
dates of the face value of our debt assume the put options on the Series A
Notes, the Series B Notes and the Series C Notes will be exercised in
December 2010, December 2011 and December 2012,
respectively.
|
(b)
|
Expected
maturity amounts are based on the face value of
debt.
|
ITEM
8.
|
Financial
Statements and
Supplementary
Data
|
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Operating
revenues
|
||||||||||||
Contract
drilling revenues
|
$ | 5,948 | $ | 3,745 | $ | 2,757 | ||||||
Contract
intangible revenues
|
88 | − | − | |||||||||
Other
revenues
|
341 | 137 | 135 | |||||||||
6,377 | 3,882 | 2,892 | ||||||||||
Costs
and expenses
|
||||||||||||
Operating
and maintenance
|
2,781 | 2,155 | 1,720 | |||||||||
Depreciation,
depletion and amortization
|
499 | 401 | 406 | |||||||||
General
and administrative
|
142 | 90 | 75 | |||||||||
3,422 | 2,646 | 2,201 | ||||||||||
Gain
from disposal of assets, net
|
284 | 405 | 29 | |||||||||
Operating
income
|
3,239 | 1,641 | 720 | |||||||||
Other
income (expense), net
|
||||||||||||
Interest
income
|
30 | 21 | 19 | |||||||||
Interest
expense, net of amounts capitalized
|
(172 | ) | (115 | ) | (111 | ) | ||||||
Gain
from TODCO stock sales
|
− | − | 165 | |||||||||
Loss
on retirement of debt
|
(8 | ) | − | (7 | ) | |||||||
Other,
net
|
295 | 60 | 17 | |||||||||
145 | (34 | ) | 83 | |||||||||
Income
before income tax expense
|
3,384 | 1,607 | 803 | |||||||||
Income
tax expense
|
253 | 222 | 87 | |||||||||
Net
income
|
$ | 3,131 | $ | 1,385 | $ | 716 | ||||||
Earnings
per share
|
||||||||||||
Basic
|
$ | 14.65 | $ | 6.32 | $ | 3.13 | ||||||
Diluted
|
$ | 14.14 | $ | 6.10 | $ | 3.03 | ||||||
Weighted
average shares outstanding
|
||||||||||||
Basic
|
214 | 219 | 229 | |||||||||
Diluted
|
222 | 228 | 238 |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Net
income
|
$ | 3,131 | $ | 1,385 | $ | 716 | ||||||
Other
comprehensive income (loss), net of tax
|
||||||||||||
Minimum
pension liability adjustments (net of tax expense (benefit) of $9 and $2
for the years ended December 31, 2006 and 2005,
respectively)
|
— | 16 | 4 | |||||||||
Amortization
of periodic pension benefit cost
|
4 | — | — | |||||||||
Other
comprehensive income (loss)
|
4 | 16 | 4 | |||||||||
Total
comprehensive income
|
$ | 3,135 | $ | 1,401 | $ | 720 |
Ordinary
shares
|
Additional
paid-in
|
Accumulated
other comprehensive
|
Retained
earnings (accumulated
|
Total
|
||||||||||||||||||||
Shares
|
Amount
|
capital
|
income
(loss)
|
deficit)
|
equity
|
|||||||||||||||||||
Balance
at December 31, 2004
|
225 | $ | 2 | $ | 10,697 | $ | (24 | ) | $ | (3,282 | ) | $ | 7,393 | |||||||||||
Net
income
|
– | - | - | - | 716 | 716 | ||||||||||||||||||
Repurchase
of ordinary shares
|
(4 | ) | - | (400 | ) | - | - | (400 | ) | |||||||||||||||
Issuance
of ordinary shares under
|
||||||||||||||||||||||||
share-based
compensation plans
|
6 | - | 260 | - | - | 260 | ||||||||||||||||||
Minimum
pension liability
|
- | - | - | 4 | - | 4 | ||||||||||||||||||
Other
|
- | - | 9 | - | - | 9 | ||||||||||||||||||
Balance
at December 31, 2005
|
227 | 2 | 10,566 | (20 | ) | (2,566 | ) | 7,982 | ||||||||||||||||
Net
income
|
− | - | - | - | 1,385 | 1,385 | ||||||||||||||||||
Repurchase
of ordinary shares
|
(25 | ) | - | (2,600 | ) | - | - | (2,600 | ) | |||||||||||||||
Issuance
of ordinary shares under
|
||||||||||||||||||||||||
share-based
compensation plans
|
2 | - | 67 | - | - | 67 | ||||||||||||||||||
Minimum
pension liability
|
− | - | - | 16 | - | 16 | ||||||||||||||||||
Adjustment
to initially apply SFAS 158, net of tax
|
- | - | - | (26 | ) | - | (26 | ) | ||||||||||||||||
Other
|
- | - | 12 | - | - | 12 | ||||||||||||||||||
Balance
at December 31, 2006
|
204 | 2 | 8,045 | (30 | ) | (1,181 | ) | 6,836 | ||||||||||||||||
Net
income
|
- | - | - | - | 3,131 | 3,131 | ||||||||||||||||||
Repurchase
of ordinary shares
|
(4 | ) | - | (400 | ) | - | - | (400 | ) | |||||||||||||||
Issuance
of ordinary shares under
|
||||||||||||||||||||||||
share-based
compensation plans
|
4 | - | 191 | - | - | 191 | ||||||||||||||||||
Accelerated
share-based compensation due to the Merger
|
1 | - | 22 | - | - | 22 | ||||||||||||||||||
Amortization
of periodic pension benefit cost
|
- | - | - | 4 | - | 4 | ||||||||||||||||||
Change
in funded status of defined benefit plans
|
- | - | - | (16 | ) | - | (16 | ) | ||||||||||||||||
Issuance
of ordinary shares upon conversion of convertible debentures and
notes
|
4 | - | 414 | - | - | 414 | ||||||||||||||||||
Consideration
paid to GlobalSantaFe shareholders
|
108 | 1 | 12,385 | - | - | 12,386 | ||||||||||||||||||
Payment
to shareholders for Reclassification of ordinary shares
|
- | - | (9,859 | ) | - | - | (9,859 | ) | ||||||||||||||||
Adjustment
to initially apply FIN 48, net of tax
|
- | - | - | - | (144 | ) | (144 | ) | ||||||||||||||||
Other
|
- | - | 1 | - | - | 1 | ||||||||||||||||||
Balance
at December 31, 2007
|
317 | $ | 3 | $ | 10,799 | $ | (42 | ) | $ | 1,806 | $ | 12,566 |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Cash
flows from operating activities
|
||||||||||||
Net
income
|
$ | 3,131 | $ | 1,385 | $ | 716 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Amortization
of drilling contract intangibles
|
(88 | ) | — | — | ||||||||
Depreciation,
depletion and amortization
|
499 | 401 | 406 | |||||||||
Share-based
compensation expense
|
78 | 20 | 16 | |||||||||
Gain
from disposal of assets, net
|
(284 | ) | (405 | ) | (29 | ) | ||||||
Gain
from TODCO stock sales
|
— | — | (165 | ) | ||||||||
Tax
benefit from exercise of stock options to purchase and vesting of ordinary
shares under share-based compensation plans
|
— | (10 | ) | 22 | ||||||||
Deferred
income taxes
|
(40 | ) | (23 | ) | 27 | |||||||
Deferred
revenue, net
|
52 | 52 | (7 | ) | ||||||||
Deferred
expenses, net
|
(55 | ) | (109 | ) | 18 | |||||||
Other,
net
|
18 | (5 | ) | (27 | ) | |||||||
Changes
in operating assets and liabilities
|
(238 | ) | (69 | ) | (113 | ) | ||||||
Net
cash provided by operating activities
|
3,073 | 1,237 | 864 | |||||||||
Cash
flows from investing activities
|
||||||||||||
Capital
expenditures
|
(1,380 | ) | (876 | ) | (182 | ) | ||||||
Consideration
paid to GlobalSantaFe shareholders
|
(5,129 | ) | — | — | ||||||||
Cash
balances acquired in connection with the Merger
|
695 | — | — | |||||||||
Proceeds
from disposal of assets, net
|
379 | 461 | 74 | |||||||||
Proceeds
from TODCO stock sales, net
|
— | — | 272 | |||||||||
Joint
ventures and other investments, net
|
(242 | ) | — | 5 | ||||||||
Net
cash provided by (used in) investing activities
|
(5,677 | ) | (415 | ) | 169 | |||||||
Cash
flows from financing activities
|
||||||||||||
Borrowings
under 364-Day Revolving Credit Facility
|
1,500 | — | — | |||||||||
Borrowings
under other credit facilities
|
15,000 | 1,000 | — | |||||||||
Repayments
under other credit facilities
|
(12,030 | ) | (300 | ) | — | |||||||
Proceeds
from issuance of debt
|
9,095 | 1,000 | — | |||||||||
Repayments
of debt
|
(3 | ) | — | (880 | ) | |||||||
Financing
costs
|
(106 | ) | (5 | ) | (1 | ) | ||||||
Repurchase
of ordinary shares
|
(400 | ) | (2,601 | ) | (400 | ) | ||||||
Proceeds
from issuance of ordinary shares under share-based compensation plans,
net
|
72 | 69 | 219 | |||||||||
Proceeds
from issuance of ordinary shares upon exercise of warrants
|
40 | — | 11 | |||||||||
Payment
to shareholders for Reclassification of ordinary shares
|
(9,859 | ) | — | — | ||||||||
Tax
benefit from issuance of ordinary shares under share-based compensation
plans
|
70 | 7 | — | |||||||||
Other,
net
|
(1 | ) | 30 | 12 | ||||||||
Net
cash provided by (used in) financing activities
|
3,378 | (800 | ) | (1,039 | ) | |||||||
Net
increase (decrease) in cash and cash equivalents
|
774 | 22 | (6 | ) | ||||||||
Cash
and cash equivalents at beginning of period
|
467 | 445 | 451 | |||||||||
Cash
and cash equivalents at end of period
|
$ | 1,241 | $ | 467 | $ | 445 |
Balance
at January 1, 2007
|
Other
(a)
|
Balance
at December 31, 2007
|
||||||||||
Contract
drilling services
|
$ | 2,195 | $ | 5,741 | $ | 7,936 | ||||||
Drilling
management services
|
— | 260 | 260 | |||||||||
Oil
and gas properties
|
— | 23 | 23 | |||||||||
Total
|
$ | 2,195 | $ | 6,024 | $ | 8,219 |
|
(a)
|
Primarily
represents the excess of the purchase price over the estimated fair value
of net assets acquired as a result of the Merger, our investment in TPDI
of $22 million and net adjustments of $14 million recorded
during 2007 related to income tax-related pre-acquisition
contingencies.
|
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Share-based
compensation expense
|
$ | 78 | $ | 20 | $ | 16 | ||||||
Income
tax benefit on share-based compensation expense
|
(9 | ) | (2 | ) | (3 | ) |
Years
ended December 31,
|
|||||
2007
|
2006
|
2005
|
|||
Dividend
yield
|
—
|
—
|
—
|
||
Expected
price volatility
|
31%
|
33%-37%
|
26%-38%
|
||
Risk-free
interest rate
|
4.88%-5.09%
|
4.52%-5.00%
|
2.86%-4.57%
|
||
Expected
life of options
|
3.2
years
|
4.7
years
|
4.4
years
|
||
Weighted-average
fair value of options granted
|
$40.69
|
$31.30
|
$21.92
|
Years
ended December 31,
|
|||||
2007
|
2006
|
2005
|
|||
Dividend
yield
|
–
|
–
|
–
|
||
Expected
price volatility
|
33%
|
33%
|
28%
|
||
Risk-free
interest rate
|
4.91%
|
4.42%
|
2.81%
|
||
Expected
life of options
|
1.0
year
|
1.0
year
|
1.0
year
|
||
Weighted-average
fair value of options granted
|
$23.01
|
$21.48
|
$7.10
|
Gain
on terminated
interest
rate
swaps
|
Minimum
pension
liability
|
SFAS
158 pension adjustment
|
Total
other
comprehensive
income
(loss)
|
|||||||||||||
Balance
at December 31, 2004
|
$ | 3 | $ | (27 | ) | $ | — | $ | (24 | ) | ||||||
Other
comprehensive income (loss)
|
— | 4 | — | 4 | ||||||||||||
Balance
at December 31, 2005
|
3 | (23 | ) | — | (20 | ) | ||||||||||
Other
comprehensive income (loss)
|
— | 16 | — | 16 | ||||||||||||
Adjustment
to initially apply SFAS 158, net of tax
|
— | 7 | (a) | (33 | ) (a) | (26 | ) | |||||||||
Balance
at December 31, 2006
|
3 | — | (33 | ) | (30 | ) | ||||||||||
Other
comprehensive income
|
— | — | 4 | 4 | ||||||||||||
Change
in funded status of deferred benefit plans
|
— | — | (16 | ) | (16 | ) | ||||||||||
Balance
at December 31, 2007
|
$ | 3 | $ | — | $ | (45 | ) | $ | (42 | ) |
Value
of Transocean shares issued to GlobalSantaFe shareholders
|
$ | 12,229 | ||
Cash
consideration to GlobalSantaFe shareholders
|
5,094 | |||
Fair
value of converted GlobalSantaFe stock options and stock appreciation
rights
|
157 | |||
Transocean
transaction costs
|
35 | |||
Total
purchase price
|
$ | 17,515 |
Historical
net book value of GlobalSantaFe (a)
|
$ | 5,776 | ||
Fair
value adjustment of property and equipment—contract drilling services,
net
|
7,385 | |||
Fair
value adjustment of property and equipment—oil and gas properties,
net
|
55 | |||
Fair
value adjustment of materials and supplies, net
|
138 | |||
Fair
value adjustment of defined benefit plans, net
|
31 | |||
Elimination
of historical deferred revenues associated with contract drilling
services
|
107 | |||
Elimination
of historical deferred expenses associated with contract drilling
services
|
(34 | ) | ||
Adjustment
to deferred income taxes resulting from various pro forma adjustments,
net
|
(530 | ) | ||
Adjustment
to goodwill – contract drilling services
|
5,400 | |||
Adjustment
to goodwill – drilling management services
|
260 | |||
Adjustment
to goodwill – oil and gas properties
|
23 | |||
Adjustment
to drilling contract intangibles, net
|
(1,303 | ) | ||
Adjustment
to other intangible items, net
|
239 | |||
Severance
costs for legacy GlobalSantaFe affected employees
|
(25 | ) | ||
Other,
net
|
(7 | ) | ||
Total
purchase price
|
$ | 17,515 |
(a)
|
Historical
net book value of GlobalSantaFe includes goodwill of $333 million
associated with prior business combinations, which was eliminated in the
purchase price allocation.
|
2007
|
2006
|
|||||||
Operating
revenues
|
$ | 11,022 | $ | 7,934 | ||||
Operating
income
|
4,967 | 2,845 | ||||||
Income
from continuing operations
|
3,756 | 1,614 | ||||||
Earnings
per share
|
||||||||
Basic
|
$ | 17.55 | $ | 4.85 | ||||
Diluted
|
$ | 16.95 | $ | 4.69 |
Year
ended
December
31, 2007
|
Year
ended
December
31, 2006
|
Total
Costs
|
||||||||||
GSF
Development Driller III (a)
|
$ | 369 | $ | — | $ | 369 | ||||||
Deepwater Pacific 1
(b)
|
279 | — | 279 | |||||||||
Sedco
700-series upgrades
|
250 | 146 | 396 | |||||||||
Discoverer
Clear Leader
|
195 | 214 | 409 | |||||||||
Discoverer
Americas
|
195 | 106 | 301 | |||||||||
Deepwater Pacific 2
(b)
|
179 | — | 179 | |||||||||
Discoverer
Inspiration
|
120 | 128 | 248 | |||||||||
GSF
Newbuild (a)
|
109 | — | 109 | |||||||||
Discoverer
Luanda
|
107 | — | 107 | |||||||||
Capitalized
Interest
|
76 | 16 | 92 | |||||||||
Total
|
$ | 1,879 | $ | 610 | $ | 2,489 |
|
(a)
|
These
costs include our initial investments in the
GSF Development Driller III
and GSF Newbuild of $356 million and $109 million,
respectively, representing the estimated fair values of the rigs at the
time of the Merger.
|
|
(b)
|
The
costs for
Deepwater Pacific 1
and
Deepwater Pacific 2
represent 100 percent of expenditures incurred prior to our
investment in the joint venture ($277 million and $178 million,
respectively) and 100 percent of expenditures incurred since our
investment in the joint venture. However, Pacific Drilling
shares 50 percent of these
costs.
|
December
31,
|
||||||||
2007
|
2006
|
|||||||
Term
Credit Facility due August 2008
|
$ | – | $ | 700 | ||||
Floating
Rate Notes due September 2008 (a)
|
1,000 | 1,000 | ||||||
Bridge
Loan Facility due November 2008 (a)
|
3,670 | – | ||||||
364-Day
Revolving Credit Facility due December 2008 (a)
|
1,500 | – | ||||||
6.625%
Notes due April 2011
|
177 | 180 | ||||||
5%
Notes due February 2013
|
246 | – | ||||||
5.25%
Senior Notes due March 2013
|
499 | – | ||||||
6.00%
Senior Notes due March 2018
|
997 | – | ||||||
7.375%
Senior Notes due April 2018
|
247 | 247 | ||||||
Zero
Coupon Convertible Debentures due May 2020
|
– | 18 | ||||||
1.5%
Convertible Debentures due May 2021
|
– | 400 | ||||||
Capital
lease obligation due July 2026 (b)
|
17 | – | ||||||
8%
Debentures due April 2027
|
57 | 57 | ||||||
7.45%
Notes due April 2027 (c)
|
95 | 95 | ||||||
7%
Senior Notes due June 2028
|
314 | – | ||||||
7.5%
Notes due April 2031
|
598 | 598 | ||||||
1.625%
Series A Convertible Senior Notes due December 2037
|
2,200 | – | ||||||
1.50%
Series B Convertible Senior Notes due December 2037
|
2,200 | – | ||||||
1.50%
Series C Convertible Senior Notes due December 2037
|
2,200 | – | ||||||
6.80%
Senior Notes due March 2038
|
999 | – | ||||||
Debt
to affiliates
|
241 | 3 | ||||||
Total
debt
|
17,257 | 3,298 | ||||||
Less
debt due within one year (a)(b)(c)
|
6,172 | 95 | ||||||
Total
long-term debt
|
$ | 11,085 | $ | 3,203 |
(a)
|
The
Floating Rate Notes, Bridge Loan Facility and 364-Day Revolving Credit
Facility were classified as debt due within one year at December 31,
2007.
|
(b)
|
The
capital lease obligation had $2 million classified as debt due within
one year at December 31, 2007.
|
(c)
|
The
7.45% Notes were classified as debt due within one year at
December 31, 2006 since the holders had the option to require us to
repurchase the notes in April 2007. At March 31, 2007, we
reclassified these notes as long-term debt, as no holders had notified us
of their intent to exercise their option by the required notification date
of March 15, 2007.
|
Years
ending December 31
,
|
||||
2008
|
$ | 6,172 | ||
2009
|
– | |||
2010
|
2,200 | |||
2011
|
2,366 | |||
2012
|
2,201 | |||
Thereafter
|
4,308 | |||
Total
|
$ | 17,247 |
December
31, 2007
|
December
31, 2006
|
|||||||||||||||
Carrying
amount
|
Fair
value
|
Carrying
amount
|
Fair
value
|
|||||||||||||
(in
millions)
|
(in
millions)
|
|||||||||||||||
Debt
|
$ | 17,257 | $ | 17,935 | $ | 3,298 | $ | 3,476 |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Accrued
payroll and employee benefits
|
$ | 447 | $ | 150 | ||||
Deferred
revenue
|
116 | 77 | ||||||
Accrued
taxes, other than income
|
100 | 30 | ||||||
Accrued
interest
|
62 | 24 | ||||||
Stock
warrant consideration payable
|
48 | — | ||||||
Unearned
income
|
12 | 67 | ||||||
Other
|
41 | 21 | ||||||
Total
other current liabilities
|
$ | 826 | $ | 369 |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Drilling
contract intangibles
|
$ | 1,394 | $ | — | ||||
Long-term
income taxes payable
|
410 | 141 | ||||||
Accrued
pension liabilities
|
133 | 84 | ||||||
Accrued
retiree life insurance and medical benefits
|
52 | 35 | ||||||
Deferred
revenue
|
39 | 28 | ||||||
Other
|
97 | 52 | ||||||
Total
other long-term liabilities
|
$ | 2,125 | $ | 340 |
December 31,
|
||||||||
2007
|
2006
|
|||||||
Value
of shares
|
$ | 400 | $ | 2,600 | ||||
Number
of shares
|
5.2 | 35.7 | ||||||
Average
purchase price per share
|
$ | 77.39 | $ | 72.78 |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(Increase)
in accounts receivable
|
$ | (274 | ) | $ | (347 | ) | $ | (150 | ) | |||
(Increase)
in other current assets
|
(43 | ) | (32 | ) | (22 | ) | ||||||
Increase
in accounts payable and other current liabilities
|
73 | 168 | 87 | |||||||||
Increase
in other long-term liabilities
|
8 | 18 | 23 | |||||||||
Change
in income taxes receivable / payable, net
|
(2 | ) | 124 | (51 | ) | |||||||
$ | (238 | ) | $ | (69 | ) | $ | (113 | ) |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Non-cash
activities
|
||||||||||||
Capital
expenditures, accrued at end of period (a)
|
$ | 233 | $ | 186 | $ | 31 | ||||||
Merger
with GlobalSantaFe (b)
|
12,386
|
— | — | |||||||||
Joint
ventures and other investments (c)
|
238 | — | — | |||||||||
Cash
payments for interest
|
208 | 125 | 129 | |||||||||
Cash
payments for income taxes
|
225 | 125 | 107 |
|
(a)
|
These
amounts represent additions to property and equipment for which we had
accrued a corresponding liability in accounts
payable.
|
|
(b)
|
In
connection with the Merger, we issued $12.4 billion of our ordinary
shares to GlobalSantaFe shareholders, acquired $20.6 billion in
assets and assumed $575 million of debt and $2.5 billion of other
liabilities. See Note 4—Merger with GlobalSantaFe
Corporation.
|
|
(c)
|
In
connection with our investment in and consolidation of TPDI, we recorded
additions to property and equipment of $457 million, of
which $238 million was in exchange for a note payable to
Pacific Drilling. See Note 1—Nature of Business and Principles
of Consolidation and Note 7—Debt.
|
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Current
provision
|
$ | 293 | $ | 245 | $ | 60 | ||||||
Deferred
provision (benefit)
|
(40 | ) | (23 | ) | 27 | |||||||
Income
tax provision
|
$ | 253 | $ | 222 | $ | 87 | ||||||
Effective
tax rate
|
7.5 | % | 13.8 | % | 10.8 | % |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Deferred
tax assets
|
||||||||
Drilling
contract intangibles
|
$ | 303 | $ | — | ||||
Net
operating loss carryforwards
|
102 | 56 | ||||||
Tax
credit carryforwards
|
100 | 118 | ||||||
Accrued
payroll expenses not currently deductible
|
85 | 38 | ||||||
Deferred
income
|
50 | (1 | ) | |||||
Other
|
83 | 37 | ||||||
Valuation
allowance
|
(29 | ) | (59 | ) | ||||
Total
deferred tax assets
|
694 | 189 | ||||||
Deferred
tax liabilities
|
||||||||
Depreciation
and amortization
|
(1,155 | ) | (218 | ) | ||||
Drilling
management services intangibles
|
(83 | ) | — | |||||
Other
|
(18 | ) | (9 | ) | ||||
Total
deferred tax liabilities
|
(1,256 | ) | (227 | ) | ||||
Net
deferred tax liabilities
|
$ | (562 | ) | $ | (38 | ) |
Unrecognized
tax benefits
|
||||
Balance
at January 1, 2007
|
$ | 219 | ||
Unrecognized
tax benefits assumed in connection with the Merger
|
42 | |||
Additions
for current year tax positions
|
48 | |||
Additions
for prior year tax positions
|
22 | |||
Reductions
for prior year tax positions
|
(6 | ) | ||
Settlements
|
(26 | ) | ||
Reductions
related to statute of limitation expirations
|
― | |||
Balance
at December 31, 2007
|
$ | 299 |
Years ending December
31,
|
Capital
Lease
|
Operating
Leases
|
||||||
2008
|
$ | 2 | $ | 30 | ||||
2009
|
2 | 25 | ||||||
2010
|
2 | 15 | ||||||
2011
|
2 | 10 | ||||||
2012
|
2 | 9 | ||||||
Thereafter
|
24 | 21 | ||||||
Total
future minimum rental payments
|
$ | 34 | $ | 110 | ||||
Less
amount representing imputed interest
|
(17 | ) | ||||||
Present
value of future minimum rental payments under capital
leases
|
17 | |||||||
Less
current portion included in accrued liabilities
|
(2 | ) | ||||||
Long-term
capital lease obligation
|
$ | 15 |
|
§
|
the
actual responsibility attributed to us and the other PRPs at the
site;
|
|
§
|
appropriate
investigatory and/or remedial actions;
and
|
|
§
|
allocation
of the costs of such activities among the PRPs and other site
users.
|
|
§
|
the
volume and nature of material, if any, contributed to the site for which
we are responsible;
|
|
§
|
the
numbers of other PRPs and their financial viability;
and
|
|
§
|
the
remediation methods and technology to be
used.
|
Number
of
shares under option
|
Weighted-average
exercise price per share
|
Weighted-average
remaining contractual term
(years)
|
Aggregate
intrinsic value
(in
millions)
|
|||||||||||||
Outstanding
at January 1, 2007
|
4,025,915 | $ | 30.22 | |||||||||||||
Granted
|
3,073 | 110.80 | ||||||||||||||
Assumed
in Merger
|
1,264,910 | 47.58 | ||||||||||||||
Exercised
|
(2,112,853 | ) | 37.46 | |||||||||||||
Forfeited
|
(11,642 | ) | 44.11 | |||||||||||||
Outstanding
at December 31, 2007
|
3,169,403 | $ | 34.76 | 3.27 | $ | 344 | ||||||||||
Vested
and exercisable at December 31, 2007
|
3,169,403 | $ | 34.76 | 3.27 | $ | 344 |
Number
of shares
|
Weighted-average
grant-date fair value per share
|
|||||||
Unvested
at January 1, 2007
|
270,743 | $ | 76.40 | |||||
Granted
|
380,653 | 109.92 | ||||||
Vested
|
(261,330 | ) | 77.12 | |||||
Forfeited
|
(20,140 | ) | 83.73 | |||||
Unvested
at December 31, 2007
|
369,926 | $ | 109.98 |
Number
of units
|
Weighted-average
grant-date fair value per share
|
|||||||
Unvested
at January 1, 2007
|
40,964 | $ | 69.55 | |||||
Granted
|
64,676 | 105.99 | ||||||
Vested
|
(53,086 | ) | 74.48 | |||||
Forfeited
|
(2,432 | ) | 98.20 | |||||
Unvested
at December 31, 2007
|
50,122 | $ | 109.97 |
Number
of
Awards
|
Weighted-average
exercise price per share
|
Weighted-average
remaining contractual term
(years)
|
Aggregate
intrinsic value
(in
millions)
|
|||||||||||||
Assumed
in the Merger at November 27, 2007
|
615,126 | $ | 88.37 | |||||||||||||
Exercised
|
(110,355 | ) | 84.65 | |||||||||||||
Outstanding
at December 31, 2007
|
504,771 | $ | 89.18 | 8.59 | $ | 27 | ||||||||||
Vested
and exercisable at December 31, 2007
|
504,771 | $ | 89.18 | 8.59 | $ | 27 |
Number
of
shares under option
|
Weighted-average
exercise price per share
|
Weighted-average
remaining contractual term
(years)
|
Aggregate
intrinsic value
(in
millions)
|
|||||||||||||
Outstanding
at January 1, 2007
|
1,206,366 | $ | 50.51 | |||||||||||||
Granted
|
― | ― | ||||||||||||||
Exercised
|
(661,988 | ) | 43.77 | |||||||||||||
Forfeited
|
(152,276 | ) | 59.78 | |||||||||||||
Outstanding
at December 31, 2007
|
392,102 | $ | 58.29 | 8.15 | $ | 33 | ||||||||||
Vested
and exercisable at December 31, 2007
|
392,102 | $ | 58.29 | 8.15 | $ | 33 |
Number
of shares
|
Weighted-average
grant-date fair value per share
|
|||||||
Unvested
at January 1, 2007
|
478,154 | $ | 44.53 | |||||
Granted
|
― | ― | ||||||
Vested
|
(357,544 | ) | 38.57 | |||||
Forfeited
|
(120,610 | ) | 62.21 | |||||
Unvested
at December 31, 2007
|
― | $ | ― |
Number
of
units
|
Weighted-average
grant-date fair value per share
|
|||||||
Unvested
at January 1, 2007
|
218,640 | $ | 55.00 | |||||
Granted
|
― | ― | ||||||
Vested
|
(150,762 | ) | 48.94 | |||||
Forfeited
|
(67,878 | ) | 68.44 | |||||
Unvested
at December 31, 2007
|
― | $ | ― |
At
December 31, 2006
|
||||||||||||
Prior
to adopting SFAS 158
|
Effect
of adopting SFAS 158
|
As
reported
|
||||||||||
Other
assets
|
$ | 322 | $ | (23 | ) | $ | 299 | |||||
Total
assets
|
11,499 | (23 | ) | 11,476 | ||||||||
Other
current liabilities
|
366 | 3 | 369 | |||||||||
Total
current liabilities
|
1,036 | 3 | 1,039 | |||||||||
Deferred
income taxes, net
|
60 | (6 | ) | 54 | ||||||||
Other
long-term liabilities
|
337 | 6 | 343 | |||||||||
Total
long-term liabilities
|
3,597 | — | 3,597 | |||||||||
Accumulated
other comprehensive loss
|
(4 | ) | (26 | ) | (30 | ) | ||||||
Total
shareholders’ equity
|
6,862 | (26 | ) | 6,836 | ||||||||
Total
liabilities and shareholders’ equity
|
$ | 11,499 | $ | (23 | ) | $ | 11,476 |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Change
in projected benefit obligation
|
||||||||
Projected
benefit obligation at beginning of year
|
$ | 351 | $ | 338 | ||||
Assumed
Pension Plans’ projected benefit obligations at Merger
date
|
686 | — | ||||||
Service
cost
|
22 | 20 | ||||||
Interest
cost
|
24 | 19 | ||||||
Foreign
currency exchange rate changes
|
— | 5 | ||||||
Benefits
paid
|
(17 | ) | (15 | ) | ||||
Actuarial
gains
|
(1 | ) | (16 | ) | ||||
Projected
benefit obligation at end of year
|
$ | 1,065 | $ | 351 | ||||
Change
in plan assets
|
||||||||
Fair
value of plan assets at beginning of year
|
$ | 273 | $ | 242 | ||||
Assumed
Pension Plans’ fair value of plan assets at Merger date
|
655 | — | ||||||
Actual
return on plan assets
|
9 | 28 | ||||||
Employer
contributions
|
22 | 15 | ||||||
Foreign
currency exchange rate changes
|
(3 | ) | 3 | |||||
Benefits
paid
|
(17 | ) | (15 | ) | ||||
Fair
value of plan assets at end of year
|
$ | 939 | $ | 273 | ||||
Funded
status
|
$ | (126 | ) | $ | (78 | ) | ||
Amounts
recognized in the consolidated balance sheets consist of:
|
||||||||
Pension
asset, non-current
|
$ | 32 | $ | 5 | ||||
Accrued
pension liability, current
|
31 | 1 | ||||||
Accrued
pension liability, non-current
|
127 | 82 | ||||||
Accumulated
other comprehensive income
(a)
|
(55 | ) | (42 | ) |
|
(a)
|
Amounts
are before income tax effect of $12 million and $9 million for
December 31, 2007 and 2006,
respectively.
|
December
31,
|
||||||||
2007
|
2006
|
|||||||
Projected
benefit obligation
|
$ | 419 | $ | 273 | ||||
Fair
value of plan assets
|
261 | 190 |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Accumulated
benefit obligation
|
$ | 256 | $ | 189 | ||||
Fair
value of plan assets
|
165 | 154 |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Components
of net periodic benefit cost (a)
|
||||||||||||
Service
cost
|
$ | 22 | $ | 20 | $ | 18 | ||||||
Interest
cost
|
24 | 19 | 18 | |||||||||
Expected
return on plan assets
|
(26 | ) | (20 | ) | (21 | ) | ||||||
Recognized
net actuarial losses
|
5 | 5 | 4 | |||||||||
Amortization
of prior service cost
|
1 | 1 | 1 | |||||||||
Amortization
of net transition obligation
|
1 | 1 | — | |||||||||
SFAS 88
settlements/curtailments
|
— | — | 2 | |||||||||
Net
periodic benefit cost
|
$ | 27 | $ | 26 | $ | 22 | ||||||
Increase
(decrease) in minimum pension liability included in other comprehensive
income
|
$ | (b | ) | $ | (25 | ) | $ | (6 | ) |
(a)
|
Amounts
are before income tax effect.
|
(b)
|
Disclosure
is not applicable for December 31, 2007 due to adoption of
SFAS 158.
|
December
31,
|
December
31,
|
|||||||
2007
(a), (b)
|
2006
(a), (b)
|
|||||||
Net
loss
|
$ | 57 | $ | 42 | ||||
Net
prior service credit
|
(3 | ) | (1 | ) | ||||
Net
transition obligation
|
1 | 1 | ||||||
Total
unrecognized accumulated other comprehensive income
|
$ | 55 | $ | 42 |
|
(a)
|
Disclosure
is not applicable for December 31,
2005.
|
|
(b)
|
Amounts
are before income tax effect.
|
Year
ending December 31,
|
||||
2008
|
||||
Net
loss
|
$ | 2 | ||
Net
prior service cost
|
1 | |||
Net
transition obligation
|
1 | |||
Total
amount in accumulated other comprehensive income expected to be recognized
next year
|
$ | 4 |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Discount
rate
|
6.07 | % | 5.72 | % | ||||
Rate
of compensation increase
|
4.57 | % | 4.27 | % |
December
31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Discount
rate
|
5.90 | % | 5.69 | % | 5.63 | % | ||||||
Expected
long-term rate of return on plan assets
|
8.40 | % | 8.49 | % | 8.70 | % | ||||||
Rate
of compensation increase
|
4.59 | % | 4.54 | % | 4.52 | % |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Equity
securities
|
64.9 | % | 60.3 | % | ||||
Debt
securities
|
28.4 | % | 29.2 | % | ||||
Other
|
6.7 | % | 10.5 | % | ||||
Total
|
100.0 | % | 100.0 | % |
Years ending December
31,
|
||||
2008
|
$ | 64 | ||
2009
|
38 | |||
2010
|
39 | |||
2011
|
42 | |||
2012
|
44 | |||
2013-2017
|
285 |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Change
in benefit obligation
|
||||||||
Benefit
obligation at beginning of year
|
$ | 36 | $ | 41 | ||||
Assumed
OPEB Plan’s projected benefit obligations at Merger date
|
21 | — | ||||||
Service
cost
|
1 | 1 | ||||||
Interest
cost
|
2 | 2 | ||||||
Actuarial
gains
|
(3 | ) | (6 | ) | ||||
Participants’
contributions
|
1 | 1 | ||||||
Benefits
paid
|
(3 | ) | (3 | ) | ||||
Benefit
obligation at end of year
|
$ | 55 | $ | 36 | ||||
Change
in plan assets
|
||||||||
Fair
value of plan assets at beginning of year
|
$ | — | $ | — | ||||
Employer
contributions
|
2 | 2 | ||||||
Participants’
contributions
|
1 | 1 | ||||||
Benefits
paid
|
(3 | ) | (3 | ) | ||||
Fair
value of plan assets at end of year
|
$ | — | $ | — | ||||
Funded
status
|
$ | (55 | ) | $ | (36 | ) | ||
Amounts
recognized in the consolidated balance sheets consist of:
|
||||||||
Accrued
postretirement benefit liability, current
|
$ | 3 | $ | 1 | ||||
Accrued
postretirement benefit liability, non-current
|
52 | 35 | ||||||
Accumulated
other comprehensive income
|
(2 | ) | — |
December
31,
|
December
31,
|
|||||||
2007(a)
|
2006(a)
|
|||||||
Net
prior service credit
|
$ | (15 | ) | $ | (17 | ) | ||
Net
loss
|
13 | 17 | ||||||
Net
transition obligation
|
— | — | ||||||
Total
unrecognized accumulated other comprehensive income
|
$ | (2 | ) | $ | — |
(a)
|
Amounts
are before income tax effect.
|
December
31,
|
||||||||
2007
|
2006
|
|||||||
Health
care cost trend rate assumed for next year
|
9.73 | % | 10.25 | % | ||||
Rate
to which the cost trend rate is assumed to decline (the ultimate trend
rate)
|
5 | % | 5 | % | ||||
Year
that the rate reaches the ultimate trend rate
|
2014
|
2014
|
Years ending December
31,
|
||||
2008
|
$ | 2 | ||
2009
|
2 | |||
2010
|
2 | |||
2011
|
2 | |||
2012
|
2 | |||
2013-2017
|
11 |
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Operating
revenues
|
||||||||||||
United
States
|
$ | 1,259 | $ | 806 | $ | 648 | ||||||
United
Kingdom
|
848 | 439 | 335 | |||||||||
India
|
761 | 291 | 296 | |||||||||
Nigeria
|
587 | 447 | 218 | |||||||||
Other
countries (a)
|
2,922 | 1,899 | 1,395 | |||||||||
Total
operating revenues
|
$ | 6,377 | $ | 3,882 | $ | 2,892 |
As
of December 31,
|
||||||||
2007
|
2006
|
|||||||
Long-lived
assets
|
||||||||
United
States
|
$ | 5,856 | $ | 2,504 | ||||
United
Kingdom
|
2,301 | 457 | ||||||
Nigeria
|
1,902 | 856 | ||||||
Other
countries (a)
|
10,871 | 3,509 | ||||||
Total
long-lived assets
|
$ | 20,930 | $ | 7,326 |
(a)
|
Other
countries represents countries in which we operate that individually had
operating revenues or long-lived assets representing less than
10 percent of total operating revenues earned or total long-lived
assets.
|
Years
ended December 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Numerator
for earnings per share:
|
||||||||||||
Net
income for basic earnings per share
|
$ | 3,131 | $ | 1,385 | $ | 716 | ||||||
Add
back interest expense on the 1.5% Convertible
Debentures
|
6 | 6 | 6 | |||||||||
Net
income for diluted earnings per share
|
$ | 3,137 | $ | 1,391 | $ | 722 | ||||||
Denominator
for earnings per share:
|
||||||||||||
Weighted-average
shares outstanding for basic earnings per share
|
214 | 219 | 229 | |||||||||
Effect
of dilutive securities:
|
||||||||||||
Employee
stock options and unvested stock grants
|
3 | 4 | 4 | |||||||||
Warrants
to purchase ordinary shares
|
2 | 2 | 2 | |||||||||
1.5%
Convertible Debentures
|
3 | 3 | 3 | |||||||||
Adjusted
weighted-average shares and assumed conversions for diluted earnings per
share
|
222 | 228 | 238 | |||||||||
Earnings
per share
|
||||||||||||
Basic
|
$ | 14.65 | $ | 6.32 | $ | 3.13 | ||||||
Diluted
|
$ | 14.14 | $ | 6.10 | $ | 3.03 |
Three
months ended
|
||||||||||||||||
March
31,
|
June
30,
|
September
30,
|
December
31,
|
|||||||||||||
(in
millions, except per share data)
|
||||||||||||||||
2007
|
||||||||||||||||
Operating
revenues
|
$ | 1,328 | $ | 1,434 | $ | 1,538 | $ | 2,077 | ||||||||
Operating
income (a)
|
657 | 676 | 753 | 1,153 | ||||||||||||
Net
income (a)(b)
|
553 | 549 | 973 | 1,056 | ||||||||||||
Earnings
per share (c)
|
||||||||||||||||
Basic
|
$ | 2.72 | $ | 2.73 | $ | 4.80 | $ | 4.27 | ||||||||
Diluted
|
$ | 2.62 | $ | 2.63 | $ | 4.63 | $ | 4.17 | ||||||||
Weighted
average shares outstanding (c)
|
||||||||||||||||
Basic
|
203 | 202 | 203 | 247 | ||||||||||||
Diluted
|
212 | 210 | 210 | 254 | ||||||||||||
2006
|
||||||||||||||||
Operating
revenues
|
$ | 817 | $ | 854 | $ | 1,025 | $ | 1,186 | ||||||||
Operating
income (d)
|
284 | 289 | 390 | 678 | ||||||||||||
Net
income (d)
|
206 | 249 | 309 | 621 | ||||||||||||
Earnings
per share (c)
|
||||||||||||||||
Basic
|
$ | 0.90 | $ | 1.10 | $ | 1.42 | $ | 3.04 | ||||||||
Diluted
|
$ | 0.87 | $ | 1.07 | $ | 1.37 | $ | 2.92 | ||||||||
Weighted
average shares outstanding (c)
|
||||||||||||||||
Basic
|
228 | 226 | 218 | 204 | ||||||||||||
Diluted
|
238 | 235 | 227 | 213 |
(a)
|
First
quarter included gain from disposal of assets of
$23 million. Third quarter included gain from disposal of
assets of $8 million. Fourth quarter included gain from
disposal of assets of $233 million. See Note 6—Asset
Dispositions.
|
(b)
|
Third
quarter included other income of $276 million recognized in
connection with the TODCO tax sharing agreement
and
a tax benefit of $52 million from various discrete tax
items.
Fourth quarter included loss on retirement of
debt of $8 million.
|
(c)
|
All
earnings per share amounts and weighted average shares outstanding have
been restated for the effect of the Reclassification. The
restatement adjusts shares outstanding in a manner similar to a reverse
stock split in the ratio of 0.6996 for each share
outstanding.
|
(d)
|
First
quarter included gain from disposal of assets of
$65 million. Second quarter included gain from disposal of
assets of $111 million. Third quarter included gain from
disposal of assets of $45 million. Fourth quarter included
gain from disposal of assets of $191 million. See Note
6—Asset Dispositions.
|
ITEM
9.
|
Changes in and
Disagreements
with Accountants on Accounting and Financial
Disclosure
|
ITEM
9A.
|
Controls and Proced
ures
|
ITEM
9B.
|
Other Inform
ation
|
ITEM
10.
|
Directors, E
xecut
ive Officers and Corporate
Governance
|
ITEM
11.
|
Executive Compen
sation
|
ITEM
12.
|
Security
Ownership of Certain
Beneficial Owners and
Management
and
Related Shareholder Matters
|
ITEM
13.
|
Certain
Relationships,
Related Transactions
, and Director
Independence
|
ITEM
14.
|
Principal Acco
untant
Fees and
Services
|
ITEM
15.
|
Exhibits and F
inancial
Statement Schedules
|
|
(a)
|
Index
to Financial Statements, Financial Statement Schedules and
Exhibits
|
Page
|
|
Included
in Part II of this report:
|
|
Management’s
Report on Internal Control Over Financial Reporting
|
61
|
Report
of Independent Registered Public Accounting Firm on
|
|
Internal
Control over Financial Reporting
|
62
|
Report
of Independent Registered Public Accounting Firm
|
63
|
Consolidated
Statements of Operations
|
64
|
Consolidated
Statements of Comprehensive Income
|
65
|
Consolidated
Balance Sheets
|
66
|
Consolidated
Statements of Equity
|
67
|
Consolidated
Statements of Cash Flows
|
68
|
Notes
to Consolidated Financial Statements
|
69
|
|
Financial
statements of unconsolidated subsidiaries are not presented herein because
such subsidiaries do not meet the significance
test.
|
Additions
|
||||||||||||||||||||||
Balance
at Beginning of Period
|
Charged to
Costs and Expenses
|
Charged to
Other Accounts Describe
|
Deductions Describe
|
Balance
at End of Period
|
||||||||||||||||||
Year
ended December 31, 2005
|
||||||||||||||||||||||
Reserves
and allowances deducted from asset accounts:
|
||||||||||||||||||||||
Allowance
for doubtful accounts receivable
|
$ | 17 | $ | 15 | $ | - | $ | 17 |
(a)(b)
|
$ | 15 | |||||||||||
Allowance
for obsolete materials and supplies
|
20 | 1 | - | 2 |
(b)(c)
|
19 | ||||||||||||||||
Valuation
allowance on deferred tax assets
|
115 | - | - | 67 |
(d)
|
48 | ||||||||||||||||
Year
ended December 31, 2006
|
||||||||||||||||||||||
Reserves
and allowances deducted from asset accounts:
|
||||||||||||||||||||||
Allowance
for doubtful accounts receivable
|
15 | 32 | - | 21 |
(a)
|
26 | ||||||||||||||||
Allowance
for obsolete materials and supplies
|
19 | 3 | - | 3 |
(e)
|
19 | ||||||||||||||||
Valuation
allowance on deferred tax assets
|
48 | 11 | - | - | 59 | |||||||||||||||||
Year
ended December 31, 2007
|
||||||||||||||||||||||
Reserves
and allowances deducted from asset accounts:
|
||||||||||||||||||||||
Allowance
for doubtful accounts receivable
|
26 | 57 | - | 33 |
(a)
|
50 | ||||||||||||||||
Allowance
for obsolete materials and supplies
|
19 | 4 | - | 1 |
(f)
|
22 | ||||||||||||||||
Valuation
allowance on deferred tax assets
|
$ | 59 | $ | - | $ | 28 |
(g)
|
$ | 58 |
(h)
|
$ | 29 |
(a)
|
Uncollectible
accounts receivable written off, net of
recoveries.
|
(b)
|
Amount
includes $1 related to adjustments to the
provision.
|
(c)
|
Obsolete
materials and supplies written off, net of
scrap.
|
(d)
|
Amount
represents the utilization of the underlying deferred tax assets to offset
current year income.
|
(e)
|
Amount
represents $3 related to sale of
rigs/inventory.
|
(f)
|
Amount
represents $1 related to sale of
rigs/inventory.
|
(g)
|
Amount
represents the valuation allowances established in connection with
the
tax assets acquired and the liabilities assumed during the
Merger.
|
(h)
|
Amount
represents a change in estimate related to the expected utilization of our
U.S. foreign tax credits.
|
Number
|
Description
|
2.1
|
Agreement
and Plan of Merger dated as of August 19, 2000 by and among
Transocean Inc., Transocean Holdings Inc., TSF
Delaware Inc. and R&B Falcon Corporation (incorporated by
reference to Annex A to the Joint Proxy Statement/Prospectus dated
October 30, 2000 included in a 424(b)(3) prospectus filed by the
Company on November 1, 2000)
|
2.2
|
Agreement
and Plan of Merger dated as of July 12, 1999 among Schlumberger Limited,
Sedco Forex Holdings Limited, Transocean Offshore Inc. and
Transocean SF Limited (incorporated by reference to Annex A to the Joint
Proxy Statement/Prospectus dated October 27, included in a 424(b)(3)
prospectus filed by the Company on November 1,
2000)
|
2.3
|
Distribution
Agreement dated as of July 12, 1999 between Schlumberger Limited and
Sedco Forex Holdings Limited (incorporated by reference to Annex B to
the Joint Proxy Statement/Prospectus dated October 27, included in a
424(b)(3) prospectus filed by the Company on November 1,
2000)
|
2.4
|
Agreement
and Plan of Merger and Conversion dated as of March 12, 1999 between
Transocean Offshore Inc. and Transocean Offshore (Texas) Inc.
(incorporated by reference to Exhibit 2.1 to the Registration
Statement on Form S-4 of Transocean Offshore (Texas) Inc. filed
on April 8, 1999 (Registration No. 333-75899))
|
2.5
|
Agreement
and Plan of Merger, dated as of July 21, 2007, among Transocean Inc.,
GlobalSantaFe Corporation and Transocean Worldwide Inc. (incorporated
by reference to Exhibit 2.1 to the Company’s Current Report on
Form 8-K filed on July 23, 2007)
|
3.1
|
Certificate
of Incorporation on Change of Name to Transocean Inc. (incorporated
by reference to Exhibit 3.3 to the Company’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2002)
|
3.2
|
Transocean
Amended and Restated Memorandum of Association (incorporated by reference
to Annex E to the Joint Proxy Statement of Transocean and GlobalSantaFe
filed on October 3, 2007)
|
3.3
|
Transocean
Amended and Restated Articles of Association (incorporated by reference to
Annex F to the Joint Proxy Statement of Transocean and GlobalSantaFe filed
on October 3, 2007)
|
4.1
|
Indenture
dated as of April 15, 1997 between the Company and Texas Commerce Bank
National Association, as trustee (incorporated by reference to
Exhibit 4.1 to the Company’s Current Report on Form 8-K dated
April 29, 1997)
|
4.2
|
First
Supplemental Indenture dated as of April 15, 1997 between the Company and
Texas Commerce Bank National Association, as trustee, supplementing the
Indenture dated as of April 15, 1997 (incorporated by reference to
Exhibit 4.2 to the Company’s Current Report on Form 8-K dated
April 29, 1997)
|
4.3
|
Second
Supplemental Indenture dated as of May 14, 1999 between the Company and
Chase Bank of Texas, National Association, as trustee (incorporated by
reference to Exhibit 4.5 to the Company’s Post-Effective Amendment
No. 1 to Registration Statement on Form S-3 (Registration
No. 333-59001-99))
|
4.4
|
Third
Supplemental Indenture dated as of May 24, 2000 between the Company and
Chase Bank of Texas, National Association, as trustee (incorporated by
reference to Exhibit 4.1 to the Company’s Current Report on
Form 8-K filed on May 24, 2000)
|
4.5
|
Fourth
Supplemental Indenture dated as of May 11, 2001 between the Company and
The Chase Manhattan Bank (incorporated by reference to Exhibit 4.3 to
the Company’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2001)
|
4.6
|
Form
of 7.45% Notes due April 15, 2027 (incorporated by reference to
Exhibit 4.3 to the Company’s Current Report on Form 8-K dated
April 29, 1997)
|
4.7
|
Form
of 8.00% Debentures due April 15, 2027 (incorporated by reference to
Exhibit 4.4 to the Company’s Current Report on Form 8-K dated
April 19, 1997)
|
4.8
|
Form
of Zero Coupon Convertible Debenture due May 24, 2020 between the Company
and Chase Bank of Texas, National Association, as trustee (incorporated by
reference to Exhibit 4.1 to the Company’s Current Report on
Form 8-K filed on May 24, 2000)
|
4.9
|
Form
of 1.5% Convertible Debenture due May 15, 2021 (incorporated by
reference to Exhibit 4.2 to the Company’s Current Report on
Form 8-K dated May 8, 2001)
|
4.10
|
Form
of 6.625% Note due April 15, 2011 (incorporated by reference to
Exhibit 4.3 to the Company’s Current Report on Form 8-K dated
March 30, 2001)
|
4.11
|
Form
of 7.5% Note due April 15, 2031 (incorporated by reference to
Exhibit 4.3 to the Company’s Current Report on Form 8-K dated
March 30, 2001)
|
4.12
|
Officers’
Certificate establishing the terms of the 6.50% Notes due 2003,
6.75% Notes due 2005, 6.95% Notes due 2008, 7.375% Notes
due 2018, 9.125% Notes due 2003 and 9.50% Notes due 2008
(incorporated by reference to Exhibit 4.13 to the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31,
2001)
|
4.13
|
Officers’
Certificate establishing the terms of the 7.375% Notes due 2018
(incorporated by reference to Exhibit 4.14 to the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31,
2001)
|
4.14
|
Warrant
Agreement, including form of Warrant, dated April 22, 1999 between R&B
Falcon and American Stock Transfer & Trust Company (incorporated by
reference to Exhibit 4.1 to R&B Falcon’s Registration Statement
No. 333-81181 on Form S-3 dated June 21,
1999)
|
4.15
|
Supplement
to Warrant Agreement dated January 31, 2001 among Transocean
Sedco Forex Inc., R&B Falcon Corporation and American Stock
Transfer & Trust Company (incorporated by reference to
Exhibit 4.28 to the Company’s Annual Report on Form 10-K for the
year ended December 31, 2000)
|
4.16
|
Supplement
to Warrant Agreement dated September 14, 2005 between Transocean Inc.
and The Bank of New York (incorporated by reference to Exhibit 4.3 to
the Company’s Post-Effective Amendment No. 3 on Form S-3 to
Form S-4 filed on November 18, 2005)
|
4.17
|
Amendment
to Warrant Agreement dated November 27, 2007 between
Transocean Inc. and The Bank of New York (incorporated by reference
to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed
on December 3, 2007)
|
4.18
|
Registration
Rights Agreement dated April 22, 1999 between R&B Falcon and American
Stock Transfer & Trust Company (incorporated by reference to
Exhibit 4.2 to R&B Falcons Registration Statement
No. 333-81181 on Form S-3 dated June 21,
1999)
|
4.19
|
Supplement
to Registration Rights Agreement dated January 31, 2001 between
Transocean Sedco Forex Inc. and R&B Falcon Corporation
(incorporated by reference to Exhibit 4.30 to the Company’s Annual
Report on Form 10-K for the year ended December 31,
2000)
|
4.20
|
Revolving
Credit Agreement, dated as of July 8, 2005, among Transocean Inc.,
the lenders from time to time party thereto, Citibank, N.A., Bank of
America, N.A., JPMorgan Chase Bank, N.A., The Royal Bank of Scotland plc
and SunTrust Bank (incorporated by reference to Exhibit 4.1 to the
Company’s Current Report on Form 8-K filed on July 13,
2005)
|
4.21
|
Amendment
No.1 to Revolving Credit Agreement, dated as of May 12, 2006, among
Transocean Inc., the lenders from time to time parties thereto,
Citibank., N.A., Bank of America, N.A., JP Morgan Chase Bank, N.A., the
Royal Bank of Scotland plc and SunTrust Bank (incorporated by reference to
Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on
May 12, 2006)
|
4.22
|
Amendment
No. 2 to Revolving Credit Agreement, dated as of June 1, 2007, among
Transocean Inc., the lenders from time to time parties thereto,
Citibank, N.A., Bank of America, N.A., JPMorgan Chase Bank, N.A., The
Royal Bank of Scotland plc and SunTrust Bank (incorporated by reference to
Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on
June 4, 2007)
|
4.23
|
Term
Credit Agreement dated August 30, 2006 among Transocean Inc., the
lenders party thereto and JPMorgan Chase Bank, N.A. as Administrative
Agent, Citibank, N.A. as Syndication Agent, and The Bank of
Tokyo-Mitsubishi UFJ, Ltd., Calyon New York Branch and The Royal Bank of
Scotland plc (incorporated by reference to Exhibit 4.1 to the
Company’s Current Report on Form 8-K filed on August 31,
2006)
|
4.24
|
Form
of Officers’ Certificate of Transocean Inc. establishing the form and
terms of the Floating Rate Notes due 2008 (incorporated by reference to
Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on
September 1, 2006)
|
4.25
|
Credit
Agreement dated as of September 28, 2007 among Transocean Inc., the
lenders party thereto and Goldman Sachs Credit Partners, L.P. as
Administrative Agent, Lehman Commercial Paper Inc. as Syndication
Agent, Citibank, N.A., Calyon Corporate and Investment Bank and JPMorgan
Chase Bank, N.A., as Co-Documentation Agents, and Goldman Sachs Credit
Partners, L.P. and Lehman Brothers Inc. as Joint Lead Arrangers and
Joint Bookrunners (incorporated by reference to Exhibit 4.1 to the
Company’s Current Report on Form 8-K filed on October 1,
2007)
|
4.26
|
Amendment
No. 1, dated November 21, 2007, to Credit Agreement dated as of
September 28, 2007 among Transocean Inc., the lenders party thereto
and Goldman Sachs Credit Partners, L.P. as Administrative Agent, Lehman
Commercial Paper Inc. as Syndication Agent, Citibank, N.A., Calyon
Corporate and Investment Bank and JPMorgan Chase Bank, N.A., as
Co-Documentation Agents, and Goldman Sachs Credit Partners, L.P. and
Lehman Brothers Inc. as Joint Lead Arrangers and Joint Bookrunners
(incorporated by reference to Exhibit 4.11 to the Company’s Current
Report on Form 8-K filed on December 3, 2007)
|
4.27
|
Five-Year
Revolving Credit Agreement dated November 27, 2007 among
Transocean Inc., as borrower, the lenders from time to time parties
thereto, JPMorgan Chase Bank, N.A., as administrative agent for the
lenders and as issuing bank of letters of credit, Citibank, N.A., as
syndication agent for the lenders and as an issuing bank of letters of
credit, Calyon Corporate and Investment Bank, as co-syndication agent, and
Credit Suisse, Cayman Islands Branch and The Bank of Tokyo-Mitsubishi UFJ,
Ltd., as co-documentation agents for the lenders (incorporated by
reference to Exhibit 4.1 to the Company’s Current Report on
Form 8-K filed on December 3, 2007)
|
4.28
|
Indenture
dated as of February 1, 2003, between GlobalSantaFe Corporation and
Wilmington Trust Company, as trustee, relating to debt securities of
GlobalSantaFe Corporation (incorporated by reference to Exhibit 4.9
to GlobalSantaFe Corporation’s Annual Report on Form 10-K for the
year ended December 31, 2002)
|
4.29
|
Supplemental
Indenture dated November 27, 2007 among Transocean
Worldwide Inc., GlobalSantaFe Corporation and Wilmington Trust
Company, as trustee, to the Indenture dated as of February 1, 2003 between
GlobalSantaFe Corporation and Wilmington Trust Company (incorporated by
reference to Exhibit 4.4 to the Company’s Current Report on
Form 8-K filed on December 3, 2007)
|
4.30
|
Form
of 7% Note Due 2028 (incorporated by reference to Exhibit 4.2 of
Global Marine Inc.’s Current Report on Form 8-K (Commission File
No. 1-5471) dated May 20, 1998)
|
4.31
|
Terms
of 7% Note Due 2028 (incorporated by reference to Exhibit 4.1 of
Global Marine Inc.’s Current Report on Form 8-K (Commission File
No. 1-5471) dated May 20, 1998)
|
4.32
|
Indenture
dated as of September 1, 1997, between Global Marine Inc. and
Wilmington Trust Company, as Trustee, relating to Debt Securities of
Global Marine Inc. (incorporated by reference to Exhibit 4.1 of
Global Marine Inc.’s Registration Statement on Form S-4
(No. 333-39033) filed with the Commission on October 30, 1997);
First Supplemental Indenture dated as of June 23, 2000 (incorporated by
reference to Exhibit 4.2 of Global Marine Inc.’s Quarterly
Report on Form 10-Q (Commission File No. 1-5471) for the quarter
ended June 30, 2000); Second Supplemental Indenture dated as of
November 20, 2001 (incorporated by reference to Exhibit 4.2 to
GlobalSantaFe Corporation’s Annual Report on Form 10-K for the year
ended December 31, 2004)
|
4.33
|
Form
of 5% Note due 2013 (incorporated by reference to Exhibit 4.10
to GlobalSantaFe Corporation’s Annual Report on Form 10-K for the
year ended December 31, 2002)
|
4.34
|
Terms
of 5% Note due 2013 (incorporated by reference to Exhibit 4.11
to GlobalSantaFe Corporation’s Annual Report on Form 10-K for the
year ended December 31, 2002)
|
4.35
|
364-Day
Revolving Credit Agreement dated December 3, 2007 among
Transocean Inc. and the lenders from time to time parties thereto,
JPMorgan Chase Bank, N.A., as administrative agent for the lenders,
Citibank, N.A., as syndication agent for the lenders, Calyon New York
Branch, as co-syndication agent, and Credit Suisse, Cayman Islands Branch
and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents for
the lenders (incorporated by reference to Exhibit 4.1 to the
Company’s Current Report on Form 8-K filed on December 5,
2007)
|
†
4.36
|
Senior
Indenture, dated as of December 11, 2007, between the Company and
Wells Fargo Bank, National Association
|
†
4.37
|
First
Supplemental Indenture, dated as of December 11, 2007, between the
Company and Wells Fargo Bank, National Association
|
†
4.38
|
Second
Supplemental Indenture, dated as of December 11, 2007, between the
Company and Wells Fargo Bank, National Association
|
10.1
|
Tax
Sharing Agreement between Sonat Inc. and Sonat Offshore
Drilling Inc. dated June 3, 1993 (incorporated by reference to
Exhibit 10-(3) to the Company’s Form 10-Q for the quarter ended
June 30, 1993)
|
*10.2
|
Performance
Award and Cash Bonus Plan of Sonat Offshore Drilling Inc.
(incorporated by reference to Exhibit 10-(5) to the Company’s
Quarterly Report on Form 10-Q for the quarter ended June 30,
1993)
|
*10.3
|
Form
of Sonat Offshore Drilling Inc. Executive Life Insurance Program
Split Dollar Agreement and Collateral Assignment Agreement (incorporated
by reference to Exhibit 10-(9) to the Company’s Annual Report on
Form 10-K for the year ended December 31,
1993)
|
*10.4
|
Amended
and Restated Employee Stock Purchase Plan of Transocean Inc.
(incorporated by reference to Exhibit 10.1 to the Company’s Current
Report on Form 8-K dated May 16, 2005)
|
*10.5
|
Amended
and Restated Long-Term Incentive Plan of Transocean Inc.
(incorporated by reference to Appendix B to the Company’s Proxy Statement
dated March 19, 2004)
|
*10.6
|
Amendment
to Amended and Restated Long-Term Incentive Plan of Transocean Inc.
(incorporated by reference to Exhibit 10.2 to the Company’s Current
Report on Form 8-K filed on July 23, 2007)
|
*10.7
|
Deferred
Compensation Plan of Transocean Offshore Inc., as amended and
restated effective January 1, 2000 (incorporated by reference to
Exhibit 10.10 to the Company’s Annual Report on Form 10-K for
the year ended December 31, 1999)
|
*10.8
|
Amendment
to Transocean Inc. Deferred Compensation Plan (incorporate by
reference to Exhibit 10.1 to the Company’s Current Report on
Form 8-K filed on December 29, 2005)
|
*10.9
|
Sedco Forex
Employees Option Plan of Transocean Sedco Forex Inc. effective
December 31, 1999 (incorporated by reference to Exhibit 4.5 to
the Company’s Registration Statement on Form S-8 (Registration
No. 333-94569) filed January 12, 2000)
|
*10.10
|
1992
Long-Term Incentive Plan of Reading & Bates Corporation (incorporated
by reference to Exhibit B to Reading & Bates’ Proxy Statement
dated April 27, 1992)
|
*10.11
|
1995
Long-Term Incentive Plan of Reading & Bates Corporation (incorporated
by reference to Exhibit 99.A to Reading & Bates’ Proxy Statement
dated March 29, 1995)
|
*10.12
|
1995
Director Stock Option Plan of Reading & Bates Corporation
(incorporated by reference to Exhibit 99.B to Reading & Bates’
Proxy Statement dated March 29, 1995)
|
*10.13
|
1997
Long-Term Incentive Plan of Reading & Bates Corporation (incorporated
by reference to Exhibit 99.A to Reading & Bates’ Proxy Statement
dated March 18, 1997)
|
*10.14
|
1998
Employee Long-Term Incentive Plan of R&B Falcon Corporation
(incorporated by reference to Exhibit 99.A to R&B Falcon’s Proxy
Statement dated April 23, 1998)
|
*10.33
|
Form
of Severance Agreement with GlobalSantaFe Corporation Executive Officers
(incorporated by reference to Exhibit 10.1 to GlobalSantaFe
Corporation’s Current Report on Form 8 K/A filed on July 26,
2005)
|
*10.34
|
Transocean
Special Transition Severance Plan for Shore-Based Employees (incorporated
by reference to Exhibit 10.3 to the Company’s Current Report on
Form 8-K filed on December 3, 2007)
|
*10.35
|
Global
Marine Inc. 1989 Stock Option and Incentive Plan (incorporated by
reference to Exhibit 10.6 of Global Marine Inc.’s Annual Report
on Form 10-K (Commission File No. 1-5471) for the year ended
December 31, 1988); First Amendment (incorporated by reference to
Exhibit 10.6 of Global Marine Inc.’s Annual Report on
Form 10-K (Commission File No. 1-5471) for the year ended
December 31, 1990); Second Amendment (incorporated by reference to
Exhibit 10.7 of Global Marine Inc.’s Annual Report on
Form 10-K (Commission File No. 1-5471) for the year ended
December 31, 1991); Third Amendment (incorporated by reference to
Exhibit 10.19 of Global Marine Inc.’s Annual Report on
Form 10-K (Commission File No. 1-5471) for the year ended
December 31, 1993); Fourth Amendment (incorporated by reference to
Exhibit 10.16 of Global Marine Inc.’s Annual Report on
Form 10-K (Commission File No. 1-5471) for the year ended
December 31, 1994); Fifth Amendment (incorporated by reference to
Exhibit 10.1 of Global Marine Inc.’s Quarterly Report on
Form 10-Q (Commission File No. 1-5471) for the quarter ended
June 30, 1996); Sixth Amendment (incorporated by reference to
Exhibit 10.18 of Global Marine Inc.’s Annual Report on
Form 10-K (Commission File No. 1-5471) for the year ended
December 31, 1996)
|
*10.36
|
Global
Marine Inc. 1990 Non-Employee Director Stock Option Plan
(incorporated by reference to Exhibit 10.18 of Global
Marine Inc.’s Annual Report on Form 10-K (Commission File
No. 1-5471) for the year ended December 31, 1991); First
Amendment (incorporated by reference to Exhibit 10.1 of Global
Marine Inc.’s Quarterly Report on Form 10-Q (Commission File
No. 1-5471) for the quarter ended June 30, 1995); Second Amendment
(incorporated by reference to Exhibit 10.37 of Global
Marine Inc.’s Annual Report on Form 10-K (Commission File
No. 1-5471) for the year ended December 31,
1996)
|
*10.37
|
1997
Long-Term Incentive Plan (incorporated by reference to GlobalSantaFe
Corporation’s Registration Statement on Form S-8 (No. 333-7070) filed
June 13, 1997); Amendment to 1997 Long Term Incentive Plan (incorporated
by reference to GlobalSantaFe Corporation’s Annual Report on Form 20-F for
the calendar year ended December 31, 1998); Amendment to 1997 Long
Term Incentive Plan dated December 1, 1999 (incorporated by reference
to GlobalSantaFe Corporation’s Annual Report on Form 20-F for the calendar
year ended December 31, 1999)
|
*10.38
|
GlobalSantaFe
Corporation 1998 Stock Option and Incentive Plan (incorporated by
reference to Exhibit 10.1 of Global Marine Inc.’s Quarterly
Report on Form 10-Q (Commission File No. 1-5471) for the quarter
ended March 31, 1998); First Amendment (incorporated by reference to
Exhibit 10.2 of Global Marine Inc.’s Quarterly Report on
Form 10-Q (Commission File No. 1-5471) for the quarter ended
June 30, 2000)
|
*10.39
|
GlobalSantaFe
Corporation 2001 Non-Employee Director Stock Option and Incentive Plan
(incorporated by reference to GlobalSantaFe Corporation’s Registration
Statement on Form S-8 (No. 333-73878) filed November 21,
2001)
|
*10.40
|
GlobalSantaFe
Corporation 2001 Long-Term Incentive Plan (incorporated by reference to
Exhibit 10.1 to GlobalSantaFe Corporation’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2001)
|
*10.41
|
GlobalSantaFe
2003 Long-Term Incentive Plan (as Amended and Restated Effective June 7,
2005) (incorporated by reference to Exhibit 10.4 to GlobalSantaFe
Corporation’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2005)
|
*10.42
|
GlobalSantaFe
Pension Equalization Plan, as amended and restated, effective
November 27, 2007 (incorporated by reference to Exhibit 10.12 to
the Company’s Current Report on Form 8-K filed on December 3,
2007)
|
*10.43
|
Transocean
U.S. Supplemental Retirement Benefit Plan, as amended and restated,
effective as of November 27, 2007 (incorporated by reference to
Exhibit 10.11 to the Company’s Current Report on Form 8-K filed
on December 3, 2007)
|
10.44
|
Commercial
Paper Dealer Agreement between Transocean Inc. and Lehman
Brothers Inc., dated as of December 20, 2007 (incorporated by
reference to Exhibit 10.1 to the Company’s Current Report on
Form 8-K filed on December 21, 2007)
|
TRANSOCEAN
INC.
|
|||
By
|
/s/ Gregory L. Cauthen
|
||
Gregory
L. Cauthen
|
|||
Senior
Vice President and Chief Financial Officer
|
Signature
|
Title
|
|
*
|
Chairman
of the Board of Directors
|
|
Robert
E. Rose
|
||
/s/ Robert L. Long
|
Chief
Executive Officer
|
|
Robert
L. Long
|
(Principal
Executive Officer)
|
|
/s/ Gregory L. Cauthen
|
Senior
Vice President and Chief Financial Officer
|
|
Gregory
L. Cauthen
|
(Principal
Financial Officer)
|
|
/s/ John H. Briscoe
|
Vice
President and Controller
|
|
John
H. Briscoe
|
(Principal
Accounting Officer)
|
|
*
|
President,
Chief Operating Officer and
|
|
Jon
A. Marshall
|
Director
|
|
*
|
Director
|
|
W.
Richard Anderson
|
||
*
|
Director
|
|
Thomas
W. Cason
|
||
*
|
Director
|
|
Richard
L. George
|
||
*
|
Director
|
|
Victor
E. Grijalva
|
||
*
|
Director
|
|
Martin
B. McNamara
|
||
*
|
Director
|
|
Edward
R. Muller
|
Signature
|
Title
|
||
*
|
|||
Kristian
Siem
|
Director
|
||
*
|
|||
Robert
M. Sprague
|
Director
|
||
*
|
|||
Ian
C. Strachan
|
Director
|
||
*
|
|||
J.
Michael Talbert
|
Director
|
||
*
|
|||
John
L. Whitmire
|
Director
|
||
By
|
/s/ Chipman Earle
|
||
Chipman
Earle
|
|||
(Attorney-in-Fact)
|
Section
of
|
||
Trust
Indenture
|
Section(s)
of
|
|
Act of 1939
|
Indenture
|
|
§
310
|
(a)(1)
|
7.10
|
(a)(2)
|
7.10
|
|
(a)(3)
|
Not
Applicable
|
|
(a)(4)
|
Not
Applicable
|
|
(a)(5)
|
7.10
|
|
(b)
|
7.08,
7.10
|
|
§
311
|
(a)
|
7.11
|
(b)
|
7.11
|
|
(c)
|
Not
Applicable
|
|
§
312
|
(a)
|
2.07
|
(b)
|
10.03
|
|
(c)
|
10.03
|
|
§
313
|
(a)
|
7.06
|
(b)
|
7.06
|
|
(c)
|
7.06
|
|
(d)
|
7.06
|
|
§
314
|
(a)
|
4.03,
4.04
|
(b)
|
Not
Applicable
|
|
(c)(1)
|
10.04
|
|
(c)(2)
|
10.04
|
|
(c)(3)
|
Not
Applicable
|
|
(d)
|
Not
Applicable
|
|
(e)
|
10.05
|
|
§
315
|
(a)
|
7.01(b)
|
(b)
|
7.05
|
|
(c)
|
7.01(a)
|
|
(d)
|
7.01(c)
|
|
(d)(1)
|
7.01(c)(1)
|
|
(d)(2)
|
7.01(c)(2)
|
|
(d)(3)
|
7.01(c)(3)
|
|
(e)
|
6.11
|
|
§
316
|
(a)(1)(A)
|
6.05
|
(a)(1)(B)
|
6.04
|
|
(a)(2)
|
Not
Applicable
|
|
(a)(last
sentence)
|
2.11
|
|
(b)
|
6.07
|
|
§
317
|
(a)(1)
|
6.08
|
(a)(2)
|
6.09
|
|
(b)
|
2.06
|
|
§
318
|
(a)
|
10.01
|
Note:
|
This
reconciliation and tie shall not, for any purpose, be deemed to be a part
of the Indenture.
|
Page
|
||
ARTICLE
I
DEFINITIONS AND
INCORPORATION BY REFERENCE
|
1
|
|
SECTION
1.01
|
Definitions.
|
1
|
SECTION
1.02
|
Other
Definitions.
|
5
|
SECTION
1.03
|
Incorporation
by Reference of Trust Indenture Act.
|
5
|
SECTION
1.04
|
Rules
of Construction.
|
6
|
ARTICLE
II
THE
SECURITIES
|
6
|
|
SECTION
2.01
|
Amount
Unlimited; Issuable in Series.
|
6
|
SECTION
2.02
|
Denominations.
|
9
|
SECTION
2.03
|
Forms
Generally.
|
9
|
SECTION
2.04
|
Execution,
Authentication, Delivery and Dating.
|
10
|
SECTION
2.05
|
Registrar
and Paying Agent.
|
11
|
SECTION
2.06
|
Paying
Agent to Hold Money in Trust.
|
12
|
SECTION
2.07
|
Holder
Lists.
|
12
|
SECTION
2.08
|
Transfer
and Exchange.
|
12
|
SECTION
2.09
|
Replacement
Securities.
|
13
|
SECTION
2.10
|
Outstanding
Securities.
|
13
|
SECTION
2.11
|
Original
Issue Discount, Foreign-Currency Denominated and Treasury
Securities.
|
14
|
SECTION
2.12
|
Temporary
Securities.
|
14
|
SECTION
2.13
|
Cancellation.
|
14
|
SECTION
2.14
|
Payments;
Defaulted Interest.
|
15
|
SECTION
2.15
|
Persons
Deemed Owners.
|
15
|
SECTION
2.16
|
Computation
of Interest.
|
15
|
SECTION
2.17
|
Global
Securities; Book-Entry Provisions.
|
15
|
ARTICLE
III
REDEMPTION
|
18
|
|
SECTION
3.01
|
Applicability
of Article.
|
18
|
SECTION
3.02
|
Notice
to the Trustee.
|
18
|
SECTION
3.03
|
Selection
of Securities To Be Redeemed.
|
18
|
SECTION
3.04
|
Notice
of Redemption.
|
18
|
SECTION
3.05
|
Effect
of Notice of Redemption.
|
19
|
SECTION
3.06
|
Deposit
of Redemption Price.
|
20
|
SECTION
3.07
|
Securities
Redeemed or Purchased in Part.
|
20
|
SECTION
3.08
|
Purchase
of Securities.
|
20
|
SECTION
3.09
|
Mandatory
and Optional Sinking Funds.
|
20
|
SECTION
3.10
|
Satisfaction
of Sinking Fund Payments with Securities.
|
21
|
SECTION
3.11
|
Redemption
of Securities for Sinking Fund.
|
21
|
ARTICLE
IV
COVENANTS
|
22
|
|
SECTION
4.01
|
Payment
of Securities.
|
22
|
SECTION
4.02
|
Maintenance
of Office or Agency.
|
22
|
SECTION
4.03
|
SEC
Reports; Financial Statements.
|
23
|
SECTION
4.04
|
Compliance
Certificate.
|
23
|
SECTION
4.05
|
Corporate
Existence.
|
23
|
SECTION
4.06
|
Waiver
of Stay, Extension or Usury Laws.
|
24
|
SECTION
4.07
|
Additional
Amounts.
|
24
|
ARTICLE
V
SUCCESSORS
|
24
|
|
SECTION
5.01
|
Limitations
on Mergers and Consolidations.
|
24
|
SECTION
5.02
|
Successor
Person Substituted.
|
25
|
ARTICLE
VI
DEFAULTS AND
REMEDIES
|
25
|
|
SECTION
6.01
|
Events
of Default.
|
25
|
SECTION
6.02
|
Acceleration.
|
27
|
SECTION
6.03
|
Other
Remedies.
|
28
|
SECTION
6.04
|
Waiver
of Defaults.
|
28
|
SECTION
6.05
|
Control
by Majority.
|
28
|
SECTION
6.06
|
Limitations
on Suits.
|
29
|
SECTION
6.07
|
Rights
of Holders to Receive Payment.
|
29
|
SECTION
6.08
|
Collection
Suit by Trustee.
|
29
|
SECTION
6.09
|
Trustee
May File Proofs of Claim.
|
29
|
SECTION
6.10
|
Priorities.
|
30
|
SECTION
6.11
|
Undertaking
for Costs.
|
31
|
ARTICLE
VII
TRUSTEE
|
31
|
|
SECTION
7.01
|
Duties
of Trustee.
|
31
|
SECTION
7.02
|
Rights
of Trustee.
|
32
|
SECTION
7.03
|
May
Hold Securities.
|
33
|
SECTION
7.04
|
Trustee’s
Disclaimer.
|
33
|
SECTION
7.05
|
Notice
of Defaults.
|
33
|
SECTION
7.06
|
Reports
by Trustee to Holders.
|
33
|
SECTION
7.07
|
Compensation
and Indemnity.
|
33
|
SECTION
7.08
|
Replacement
of Trustee.
|
34
|
SECTION
7.09
|
Successor
Trustee by Merger, etc.
|
36
|
SECTION
7.10
|
Eligibility;
Disqualification.
|
36
|
SECTION
7.11
|
Preferential
Collection of Claims Against the Company.
|
36
|
ARTICLE
VIII
DISCHARGE OF
INDENTURE
|
37
|
|
SECTION
8.01
|
Termination
of the Company’s Obligations.
|
37
|
SECTION
8.02
|
Application
of Trust Money.
|
40
|
SECTION
8.03
|
Repayment
to Company.
|
40
|
SECTION
8.04
|
Reinstatement.
|
41
|
ARTICLE
IX
SUPPLEMENTAL
INDENTURES AND AMENDMENTS
|
41
|
|
SECTION
9.01
|
Without
Consent of Holders.
|
41
|
SECTION
9.02
|
With
Consent of Holders.
|
42
|
SECTION
9.03
|
Compliance
with Trust Indenture Act.
|
44
|
SECTION
9.04
|
Revocation
and Effect of Consents.
|
44
|
SECTION
9.05
|
Notation
on or Exchange of Securities.
|
45
|
SECTION
9.06
|
Trustee
to Sign Amendments, etc.
|
45
|
ARTICLE
X
MISCELLANEOUS
|
45
|
|
SECTION
10.01
|
Trust
Indenture Act Controls.
|
45
|
SECTION
10.02
|
Notices.
|
46
|
SECTION
10.03
|
Communication
by Holders with Other Holders.
|
47
|
SECTION
10.04
|
Certificate
and Opinion as to Conditions Precedent.
|
47
|
SECTION
10.05
|
Statements
Required in Certificate or Opinion.
|
47
|
SECTION
10.06
|
Rules
by Trustee and Agents.
|
48
|
SECTION
10.07
|
Legal
Holidays.
|
48
|
SECTION
10.08
|
No
Recourse Against Others.
|
48
|
SECTION
10.09
|
Governing
Law.
|
48
|
SECTION
10.10
|
No
Adverse Interpretation of Other Agreements.
|
48
|
SECTION
10.11
|
Successors.
|
48
|
SECTION
10.12
|
Severability.
|
48
|
SECTION
10.13
|
Counterpart
Originals.
|
49
|
SECTION
10.14
|
Table
of Contents, Headings, etc.
|
49
|
SECTION
1.01
|
Definitions.
|
SECTION
1.02
|
Other
Definitions
|
|
Defined
|
||
Term
|
|
in Section
|
|
“Agent
Members”
|
2.17
|
||
“Bankruptcy
Custodian”
|
6.01
|
||
“Conversion
Event”
|
6.01
|
||
“covenant
defeasance”
|
8.01
|
||
“Event
of Default”
|
6.01
|
||
“Exchange
Rate”
|
2.11
|
||
“Judgment
Currency”
|
6.10
|
||
“legal
defeasance”
|
8.01
|
||
“mandatory
sinking fund payment”
|
3.09
|
||
“optional
sinking fund payment”
|
3.09
|
||
“Paying
Agent”
|
2.05
|
||
“Registrar”
|
2.05
|
||
“Required
Currency”
|
6.10
|
||
“Successor”
|
5.01
|
SECTION
1.03
|
Incorporation by Reference of
Trust Indenture Act.
|
|
(1)
|
a
term has the meaning assigned to
it;
|
|
(2)
|
an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;
|
|
(3)
|
“or”
is not exclusive;
|
|
(4)
|
words
in the singular include the plural, and in the plural include the
singular;
|
|
(5)
|
provisions
apply to successive events and transactions;
and
|
|
(6)
|
all
references in this instrument to Articles and Sections are references to
the corresponding Articles and Sections in and of this
instrument.
|
SECTION
2.01
|
Amount Unlimited; Issuable in
Series.
|
SECTION
2.02
|
Denominations.
|
SECTION
2.03
|
Forms
Generally.
|
,
|
as
Trustee
|
|||
By:
|
||||
Authorized
Signatory”.
|
SECTION
2.04
|
Execution,
Authentication, Delivery and
Dating.
|
SECTION
2.05
|
Registrar and Paying
Agent.
|
SECTION
2.06
|
Paying Agent to Hold Money in
Trust.
|
SECTION
2.07
|
Holder
Lists.
|
SECTION
2.08
|
Transfer and
Exchange.
|
SECTION
2.09
|
Replacement
Securities.
|
SECTION
2.10
|
Outstanding
Securities.
|
SECTION
2.11
|
Original Issue Discount,
Foreign-Currency Denominated and Treasury
Securities.
|
SECTION
2.12
|
Temporary
Securities.
|
SECTION
2.13
|
Cancellation.
|
SECTION
2.14
|
Payments; Defaulted
Interest.
|
SECTION
2.15
|
Persons Deemed
Owners.
|
SECTION
2.16
|
Computation of
Interest.
|
SECTION
2.17
|
Global Securities; Book-Entry
Provisions.
|
SECTION
3.01
|
Applicability of
Article.
|
SECTION
3.02
|
Notice to the
Trustee.
|
SECTION
3.03
|
Selection of Securities To Be
Redeemed.
|
SECTION
3.04
|
Notice of
Redemption.
|
SECTION
3.05
|
Effect of Notice of
Redemption.
|
SECTION
3.06
|
Deposit of Redemption
Price.
|
SECTION
3.07
|
Securities Redeemed or
Purchased in Part.
|
SECTION
3.08
|
Purchase of
Securities.
|
SECTION
3.09
|
Mandatory and Optional Sinking
Funds.
|
SECTION
3.10
|
Satisfaction of Sinking Fund
Payments with Securities.
|
SECTION
3.11
|
Redemption of Securities for
Sinking Fund.
|
SECTION
4.01
|
Payment of
Securities.
|
SECTION
4.02
|
Maintenance of Office or
Agency.
|
SECTION
4.03
|
SEC Reports; Financial
Statements.
|
SECTION
4.04
|
Compliance
Certificate.
|
SECTION
4.05
|
Corporate
Existence.
|
SECTION
4.06
|
Waiver of Stay, Extension or
Usury Laws.
|
SECTION
4.07
|
Additional
Amounts.
|
SECTION
5.01
|
Limitations on Mergers and
Consolidations.
|
SECTION
5.02
|
Successor Person
Substituted.
|
SECTION
6.01
|
Events of
Default.
|
SECTION
6.02
|
Acceleration.
|
SECTION
6.03
|
Other
Remedies.
|
SECTION
6.04
|
Waiver of
Defaults.
|
SECTION
6.05
|
Control by
Majority.
|
SECTION
6.06
|
Limitations on
Suits.
|
SECTION
6.07
|
Rights of Holders to Receive
Payment.
|
SECTION
6.08
|
Collection Suit by
Trustee.
|
SECTION
6.09
|
Trustee May File Proofs of
Claim.
|
SECTION
6.10
|
Priorities.
|
SECTION
6.11
|
Undertaking for
Costs.
|
SECTION
7.01
|
Duties of
Trustee.
|
SECTION
7.02
|
Rights of
Trustee.
|
SECTION
7.03
|
May Hold
Securities
.
|
SECTION
7.04
|
Trustee’s
Disclaimer.
|
SECTION
7.05
|
Notice of
Defaults.
|
SECTION
7.06
|
Reports by Trustee to
Holders.
|
SECTION
7.07
|
Compensation and
Indemnity.
|
SECTION
7.08
|
Replacement of
Trustee.
|
SECTION
7.09
|
Successor Trustee by Merger,
etc.
|
SECTION
7.10
|
Eligibility;
Disqualification.
|
SECTION
7.11
|
Preferential Collection of
Claims Against the Company.
|
SECTION
8.01
|
Termination of the Company’s
Obligations.
|
|
(i)
|
have
become due and payable, or
|
|
(ii)
|
will
become due and payable at their Stated Maturity within one year,
or
|
|
(iii)
|
are
to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the
Company,
|
SECTION
8.02
|
Application of Trust
Money.
|
SECTION
8.03
|
Repayment to
Company.
|
SECTION
8.04
|
Reinstatement.
|
SECTION
9.01
|
Without Consent of
Holders.
|
SECTION
9.02
|
With Consent of
Holders.
|
SECTION
9.03
|
Compliance with Trust
Indenture Act.
|
SECTION
9.04
|
Revocation and Effect of
Consents.
|
SECTION
9.05
|
Notation on or Exchange of
Securities.
|
SECTION
9.06
|
Trustee to Sign Amendments,
etc.
|
SECTION
10.01
|
Trust Indenture Act
Controls.
|
SECTION
10.02
|
Notices.
|
SECTION
10.03
|
Communication by Holders with
Other Holders.
|
SECTION
10.04
|
Certificate and Opinion as to
Conditions Precedent.
|
SECTION
10.05
|
Statements Required in
Certificate or
Opinion.
|
SECTION
10.06
|
Rules by Trustee and
Agents.
|
SECTION
10.07
|
Legal
Holidays.
|
SECTION
10.08
|
No Recourse Against
Others.
|
SECTION
10.09
|
Governing
Law.
|
SECTION
10.10
|
No Adverse Interpretation of
Other Agreements.
|
SECTION
10.11
|
Successors.
|
SECTION
10.12
|
Severability.
|
SECTION
10.13
|
Counterpart
Originals.
|
SECTION
10.14
|
Table of Contents, Headings,
etc.
|
TRANSOCEAN INC. | ||
By:
|
/s/ Anil
Shah
|
|
|
Name:
Anil Shah
|
|
|
Title:
Vice President and Treasurer
|
|
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee | ||
By:
|
/s/ Patrick T.
Giordano
|
|
|
Name:
Patrick T. Giordano
|
|
|
Title:
Vice President
|
|
2.
|
any
Lien existing on Restricted Property owned or leased by a Person at the
time it becomes a Subsidiary;
|
|
3.
|
any
Lien existing on Restricted Property at the time of the acquisition
thereof by the Company or a
Subsidiary;
|
|
4.
|
any
Lien to secure any debt incurred prior to, at the time of, or within 12
months after the acquisition of Restricted Property for the purpose of
financing all or any part of the purchase price thereof and any Lien to
the extent that it secures debt which is in excess of such purchase price
and for the payment of which recourse may be had only against such
Restricted Property;
|
|
5.
|
any
Lien to secure any debt incurred prior to, at the time of, or within 12
months after the completion of the construction and commencement of
commercial operation, alteration, repair or improvement of Restricted
Property for the purpose of financing all or any part of the cost thereof
and any Lien to the extent that it secures debt which is in excess of such
cost and for the payment of which recourse may be had only against such
Restricted Property;
|
|
6.
|
any
Lien securing debt of a Subsidiary owing to the Company or to another
Subsidiary;
|
|
7.
|
any
Lien in favor of the United States of America or any State thereof or any
other country, or any agency, instrumentality of political subdivision of
any of the foregoing, to secure partial, progress, advance or other
payments or performance pursuant to the provisions of any contract or
statute, or any Liens securing industrial development, pollution control,
or similar revenue bonds;
|
|
8.
|
Liens
imposed by law, such as mechanics’, workmen’s, repairmen’s, materialmen’s,
carriers’, warehousemen’s, vendors’ or other similar Liens arising in the
ordinary course of business, or governmental (federal, state or municipal)
Liens arising out of contracts for the sale of products or services by the
Company or any Subsidiary, or deposits or pledges to obtain the release of
any of the foregoing;
|
|
9.
|
pledges
or deposits under workmen’s compensation laws or similar legislation and
Liens of judgments thereunder which are not currently dischargeable, or
good faith deposits in connection with bids, tenders, contracts (other
than for the payment of money) or leases to which the Company or any
Subsidiary is a party, or deposits to secure public or statutory
obligations of the Company or any Subsidiary, or deposits in connection
with obtaining or maintaining self-insurance or to obtain the benefits of
any law, regulation or arrangement pertaining to unemployment insurance,
old age pensions, social security or similar matters, or deposits of cash
or obligations of the United States of America to secure surety, appeal or
customs bonds to which the Company or any Subsidiary is a party, or
deposits in litigation or other proceedings such as, but not limited to,
interpleader proceedings;
|
|
10.
|
Liens
created by or resulting from any litigation or other proceeding which is
being contested in good faith by appropriate proceedings, including Liens
arising out of judgments or awards against the Company or any Subsidiary
with respect to which the Company or such Subsidiary is in good faith
prosecuting an appeal or proceedings for review; or Liens incurred by the
Company or any Subsidiary for the purpose of obtaining a stay or discharge
in the course of any litigation or other proceeding to which the Company
or such Subsidiary is a party;
|
|
11.
|
Liens
for taxes or assessments or governmental charges or levies not yet due or
delinquent, or which can thereafter be paid without penalty, or which are
being contested in good faith by appropriate
proceedings;
|
|
12.
|
any
extension, renewal or replacement (or successive extensions, renewals or
replacements) in whole or in part of any Lien referred to in clauses (1)
through (11) above, so long as the principal amount of the debt secured
thereby does not exceed the principal amount of debt so secured at the
time of the extension, renewal or replacement (except that, where an
additional principal amount of debt is incurred to provide funds for the
completion of a specific project, the additional principal amount, and any
related financing costs, may be secured by the Lien as well) and the Lien
is limited to the same property subject to the Lien so extended, renewed
or replaced (plus improvements on the property);
and
|
|
13.
|
any
Lien not permitted by clauses (1) through (12) above securing debt that,
together with the aggregate outstanding principal amount of all other debt
of the Company and its Subsidiaries secured by Liens which would otherwise
be prohibited by the foregoing restrictions and the aggregate Value of
existing Sale and Leaseback Transactions which would be subject to the
restrictions of Section 4.09 but for this clause (13), does not at any
time exceed 10% of Consolidated Net Tangible
Assets.
|
|
1.
|
the
Company or such Subsidiary would be entitled to incur debt, in a principal
amount at least equal to the Value of such Sale and Leaseback Transaction,
which is secured by Liens on the property to be leased (without equally
and ratably securing the outstanding Securities) because such Liens would
be of such character that no violation of the provisions of Section 4.08
would result, or
|
|
2.
|
the
Company during the six months immediately following the effective date of
such Sale and Leaseback Transaction causes to be applied to (A) the
acquisition of Restricted Property or (B) the voluntary retirement of
Funded Debt (whether by redemption, defeasance, repurchase, or otherwise)
an amount equal to the Value of such Sale and Leaseback
Transaction.
|
TRANSOCEAN INC. | ||
By:
|
/s/ Anil Shah
|
|
Name: Anil
Shah
|
||
Title: Vice
President and Treasurer
|
||
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee | ||
By:
|
/s/ Patrick T. Giordano
|
|
Name:
Patrick T. Giordano
|
||
Title:
Vice President
|
Issue
Date: December 11, 2007
|
Maturity:
March 15, 2038
|
Principal
Amount: $
|
CUSIP:
893830 AR0
|
ISIN:
US893830AR03
|
|
Registered: No.
R-
|
TRANSOCEAN
INC.
|
||
By:
|
||
Name:
|
||
Title:
|
Attest:
|
||
Assistant
Secretary
|
WELLS
FARGO BANK, NATIONAL ASSOCIATION, as Trustee
|
||
|
||
Authorized
Signatory
|
||
Date
of
Authentication:__________________________________________
|
|
Issue
Date: December 11, 2007
|
Maturity:
March 15, 2018
|
Principal
Amount: $
|
CUSIP:
893830 AS8
|
ISIN:
US893830AS85
|
|
Registered: No.
R-
|
Dated:
|
|||
TRANSOCEAN
INC.
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
Attest:
|
|||
|
|||
Assistant
|
Secretary
|
WELLS
FARGO BANK, NATIONAL ASSOCIATION, as Trustee
|
|
|
|
Authorized
Signatory
|
|
Date
of Authentication: _____________________
|
Issue
Date: December 11, 2007
|
Maturity:
March 15, 2038
|
Principal
Amount: $
|
CUSIP:
893830 AT6
|
ISIN:
US893830AT68
|
|
Registered: No.
R-
|
Dated:
|
|||
TRANSOCEAN
INC.
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
Attest:
|
|||
Assistant
Secretary
|
WELLS
FARGO BANK, NATIONAL ASSOCIATION, as Trustee
|
||
Authorized
Signatory
|
||
Date
of Authentication:____________________________________
|
ARTICLE
ONE
|
THE
2037 NOTES
|
2
|
|
SECTION
101
|
Designation
of 2037 Notes; Establishment of Form.
|
2
|
|
SECTION
102
|
Amount.
|
3
|
|
SECTION
103
|
Interest.
|
3
|
|
SECTION
104
|
Additional
Amounts.
|
3
|
|
SECTION
105
|
Denominations.
|
3
|
|
SECTION
106
|
Place
of Payment.
|
3
|
|
SECTION
107
|
Redemption.
|
4
|
|
SECTION
108
|
Conversion.
|
4
|
|
SECTION
109
|
Maturity.
|
4
|
|
SECTION
110
|
Repurchase.
|
4
|
|
SECTION
111
|
Other
Terms of 2037 Notes.
|
4
|
|
ARTICLE
TWO
|
AMENDMENTS
TO THE INDENTURE
|
5
|
|
SECTION
201
|
Definitions.
|
5
|
|
SECTION
202
|
Mutilated,
Destroyed, Lost and Stolen Securities.
|
10
|
|
SECTION
203
|
Payment
of Interest; Interest Rights Preserved.
|
10
|
|
SECTION
204
|
Unconditional
Right of Holders to Receive Principal and
Interest.
|
11
|
|
SECTION
205
|
Consolidation,
Merger and Sale; Limitation on Mergers and Consolidations.
|
11
|
|
SECTION
206
|
Supplemental
Indentures Without Consent of Holders.
|
11
|
|
SECTION
207
|
Supplemental
Indenture with Consent of Holder.
|
12
|
|
SECTION
208
|
Maintenance
of Office or Agency.
|
12
|
|
SECTION
209
|
Tax
Additional Amounts.
|
12
|
|
SECTION
210
|
Redemption.
|
14
|
|
SECTION
211
|
Conversion,
Repurchase.
|
20
|
|
SECTION
212
|
Amendment
to Events of Default.
|
39
|
|
ARTICLE
THREE
|
MISCELLANEOUS
PROVISIONS
|
40
|
|
SECTION
301
|
Integral
Part.
|
40
|
|
SECTION
302
|
General
Definitions.
|
40
|
|
SECTION
303
|
Adoption,
Ratification and Confirmation.
|
40
|
|
SECTION
304
|
Counterparts.
|
40
|
|
SECTION
305
|
Governing
Law.
|
40
|
(
|
(VWA
Price on such VWAP Trading Day
´
Conversion Rate) – $1,000
|
)
|
VWA
Price on such VWAP Trading Day x 20
|
CR
1
= CR
0
|
x
|
OS
1
|
OS
0
|
CR
0
|
=
|
the Conversion Rate in effect at the
close of business immediately prior to the Ex-dividend
Date
|
CR
1
|
=
|
the Conversion Rate in effect on the
Ex-dividend Date
|
OS
0
|
=
|
the number of Ordinary Shares
outstanding at the close of business immediately prior to the Ex-dividend
Date
|
OS
1
|
=
|
the number of Ordinary Shares
outstanding at the close of business immediately prior to the Ex-dividend
Date, assuming, for this purpose only, the completion of the event
immediately prior to the Ex-dividend
Date
|
CR
1
= CR
0
|
x
|
OS
0
+
X
|
OS
0
+
Y
|
CR
0
|
=
|
the Conversion Rate in effect at the
close of business immediately prior to the Ex-dividend
Date
|
CR
1
|
=
|
the Conversion Rate in effect on the
Ex-dividend Date
|
OS
0
|
=
|
the number of Ordinary Shares
outstanding at the close of business immediately prior to the Ex-dividend
Date
|
X
|
=
|
the total number of Ordinary Shares
issuable pursuant to such rights
|
Y
|
=
|
the
number of Ordinary Shares equal to the
aggregate price payable to exercise such rights divided by the average of
the Last Reported Sale Prices of the Ordinary Shares for the 10
consecutive Trading Days ending on the Busi
ness Day immediately preceding the announcement of
the issuance of such rights
|
x
|
SP
0
|
|
SP
0
–
FMV
|
CR
0
|
=
|
the Conversion Rate in effect at the
close of business immediately prior to the Ex-dividend
Date
|
CR
1
|
=
|
the Conversion Rate in effect on the
Ex-dividend Date
|
SP
0
|
=
|
the Current Market
Price
|
FMV
|
=
|
the fair market value (as determined by
the Board of Directors, whose determination shall be conclusive evidence
of such fair market value and which shall be evidenced by an Officers’
Certificate delivered to the Trustee) of the shares of capital stock,
evidences of indebtedness or other assets distributed with respect to each
outstanding Ordinary Share on the Ex-dividend Date for such
distribution
|
CR
1
= CR
0
|
x
|
FMV
0
+ MP
0
|
MP
0
|
CR
0
|
=
|
the Conversion Rate in effect at the
close of business immediately prior to the end of the Spin-off Valuation
Period
|
CR
1
|
=
|
the Conversion Rate in effect after the
end of the Spin-off Valuation Period
|
FMV
0
|
=
|
the average of the sale prices of the
capital stock or similar equity interest distributed to holders of
Ordinary Shares applicable to one Ordinary Share over the 10 Trading Days
commencing on and including the effective date of the spin-off (the
“Spin-off Valuation Period”); provided that, in the case of any VWAP
Trading Days within a Conversion Period that fall within such ten Trading
Day period, in respect of any such VWAP Trading Day, the Spin-Off
Valuation Period shall be deemed to include only those Trading Days
falling on or between the effective date of such spin-off and such VWAP
Trading Day.
|
MP
0
|
=
|
the average of the Last Reported Sale
Prices of Ordinary Shares over the Spin-off Valuation
Period
|
CR
1
= CR
0
|
x
|
SP
0
|
SP
0
-
C
|
|
CR
0
|
=
|
the
Conversion Rate in effect at the close of business immediately prior to
the Ex-dividend Date
|
|
CR
1
|
=
|
the
Conversion Rate in effect on the Ex-dividend
Date
|
|
SP
0
|
=
|
the
Current Market Price
|
|
C
|
=
|
the
amount in cash per share the Company distributes to holders of Ordinary
Shares (and for which no adjustment has been
made)
|
CR
1
= CR
0
|
x
|
FMV
0
+ (SP
1
x OS
1
)
|
OS
0
x SP
1
|
|
CR
0
|
=
|
the
Conversion Rate in effect on the Expiration
Date
|
|
CR
1
|
=
|
the
Conversion Rate in effect immediately after the Expiration
Date
|
|
FMV
0
|
=
|
the
fair market value (as determined by the Board of Directors, whose
determination shall be conclusive evidence of such fair market value and
which shall be evidenced by an Officers’ Certificate delivered to the
Trustee) of the aggregate value of all cash and/or any other consideration
paid or payable for Ordinary Shares validly tendered or exchanged and not
withdrawn as of the Expiration Date
|
|
OS
0
|
=
|
the
number of Ordinary Shares outstanding immediately prior to the Expiration
Date
|
|
OS
1
|
=
|
the
number of Ordinary Shares outstanding immediately after the Expiration
Date, excluding any purchased
shares
|
|
SP
1
|
=
|
the
average of the Last Reported Sale Price of the Ordinary Shares over the 10
Trading Days beginning on the Trading Day after the Expiration
Date
|
|
·
|
the
issuance of Ordinary Shares pursuant to any present or future plan
providing for the reinvestment of distributions or interest payable on
securities of the Company and the investment of additional
optional amounts in Ordinary Shares under any such
plan;
|
|
·
|
upon
the issuance of Ordinary Shares or options or rights to purchase Ordinary
Shares pursuant to any present or future employee, director or consultant
benefit plan or program of or assumed by the Company or any of its
Subsidiaries;
|
|
·
|
upon
the issuance of Ordinary Shares pursuant to any option, warrant, right or
exercisable, exchangeable or convertible
security;
|
|
·
|
for
a change in the par value (or a change to no par value) of Ordinary
Shares; or
|
|
·
|
for
accumulated and unpaid dividends.
|
TRANSOCEAN
INC.
|
|||
By:
|
/s/ Anil Shah
|
||
Name:
|
Anil
Shah
|
||
Title:
|
Vice
President and Treasurer
|
||
WELLS
FARGO BANK, NATIONAL ASSOCIATION, as Trustee
|
|||
By:
|
/s/ Patrick T. Giordano
|
||
Name:
|
Patrick
T. Giordano
|
||
Title:
|
Vice
President
|
Issue
Date: December 11, 2007
|
Maturity:
December 15, 2037
|
Principal
Amount: $
|
CUSIP:
893830 AU3
|
Registered:
No. R-
|
ISIN:
US893830AU32
|
Dated:
|
||||
TRANSOCEAN
INC.
|
||||
By:
|
||||
Name:
|
||||
Title:
|
||||
Attest:
|
||||
Assistant
Secretary
|
WELLS
FARGO BANK, NATIONAL
ASSOCIATION,
as Trustee
|
|||
Authorized
Signatory
|
|||
Date
of Authentication:
|
*
|
The
signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities
Transfer Agent Medallion Program (STAMP); (ii) the New York Stock Exchange
Medallion Program (MSP); (iii) the Stock Exchange Medallion Program
(SEMP); or (iv) such other guaranty program acceptable to the
Trustee.
|
Issue
Date: December 11, 2007
|
Maturity:
December 15, 2037
|
Principal
Amount: $
|
CUSIP:
893830 AV1
|
Registered:
No. R-
|
ISIN:
US893830AV15
|
TRANSOCEAN
INC.
|
||||
By:
|
||||
Name:
|
||||
Title:
|
||||
Attest:
|
||||
Assistant
Secretary
|
WELLS
FARGO BANK, NATIONAL
ASSOCIATION,
as Trustee
|
|||
Authorized
Signatory
|
|||
Date
of Authentication:
|
*
|
The
signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities
Transfer Agent Medallion Program (STAMP); (ii) the New York Stock Exchange
Medallion Program (MSP); (iii) the Stock Exchange Medallion Program
(SEMP); or (iv) such other guaranty program acceptable to the
Trustee.
|
Issue
Date: December 11, 2007
|
Maturity:
December 15, 2037
|
Principal
Amount: $
|
CUSIP:
893830 AW9
|
Registered:
No. R-
|
ISIN:
US893830AW97
|
TRANSOCEAN
INC.
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
Attest:
|
|||
Assistant
Secretary
|
WELLS
FARGO BANK, NATIONAL
ASSOCIATION,
as Trustee
|
|||
Authorized
Signatory
|
|||
Date
of Authentication:
|
*
|
The
signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities
Transfer Agent Medallion Program (STAMP); (ii) the New York Stock Exchange
Medallion Program (MSP); (iii) the Stock Exchange Medallion Program
(SEMP); or (iv) such other guaranty program acceptable to the
Trustee.
|
Effective
Date
|
$ | 127.25 | $ | 130.00 | $ | 135.00 | $ | 145.00 | $ | 155.00 | $ | 168.61 | $ | 185.00 | $ | 200.00 | $ | 250.00 | $ | 300.00 | $ | 400.00 | $ | 500.00 | ||||||||||||||||||||||||
December
11, 2007
|
1.9275 | 1.8237 | 1.6421 | 1.3371 | 1.0954 | 0.8440 | 0.6276 | 0.4873 | 0.2399 | 0.1435 | 0.0746 | 0.0475 | ||||||||||||||||||||||||||||||||||||
June
15, 2008
|
1.9275 | 1.8192 | 1.6283 | 1.3085 | 1.0566 | 0.7971 | 0.5773 | 0.4379 | 0.2029 | 0.1188 | 0.0628 | 0.0408 | ||||||||||||||||||||||||||||||||||||
December
15, 2008
|
1.9061 | 1.7854 | 1.5855 | 1.2521 | 0.9916 | 0.7268 | 0.5076 | 0.3727 | 0.1598 | 0.0920 | 0.0503 | 0.0333 | ||||||||||||||||||||||||||||||||||||
June
15, 2009
|
1.8697 | 1.7422 | 1.5313 | 1.1809 | 0.9099 | 0.6395 | 0.4231 | 0.2959 | 0.1141 | 0.0657 | 0.0379 | 0.0256 | ||||||||||||||||||||||||||||||||||||
December
15, 2009
|
1.8416 | 1.7043 | 1.4770 | 1.1004 | 0.8125 | 0.5331 | 0.3215 | 0.2067 | 0.0689 | 0.0418 | 0.0260 | 0.0178 | ||||||||||||||||||||||||||||||||||||
June
15, 2010
|
1.8424 | 1.6900 | 1.4358 | 1.0113 | 0.6896 | 0.3916 | 0.1910 | 0.1014 | 0.0296 | 0.0211 | 0.0139 | 0.0096 | ||||||||||||||||||||||||||||||||||||
December
20, 2010
|
1.9275 | 1.7613 | 1.4764 | 0.9656 | 0.5206 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
Effective
Date
|
$ | 127.25 | $ | 130.00 | $ | 135.00 | $ | 145.00 | $ | 155.00 | $ | 168.61 | $ | 185.00 | $ | 200.00 | $ | 250.00 | $ | 300.00 | $ | 400.00 | $ | 500.00 | ||||||||||||||||||||||||
December
11, 2007
|
1.9275 | 1.8326 | 1.6665 | 1.3855 | 1.1601 | 0.9214 | 0.7101 | 0.5684 | 0.3005 | 0.1829 | 0.0902 | 0.0538 | ||||||||||||||||||||||||||||||||||||
June
15, 2008
|
1.9275 | 1.8332 | 1.6602 | 1.3683 | 1.1353 | 0.8900 | 0.6752 | 0.5330 | 0.2711 | 0.1616 | 0.0794 | 0.0480 | ||||||||||||||||||||||||||||||||||||
December
15, 2008
|
1.9141 | 1.8064 | 1.6275 | 1.3269 | 1.0882 | 0.8392 | 0.6240 | 0.4839 | 0.2348 | 0.1368 | 0.0675 | 0.0414 | ||||||||||||||||||||||||||||||||||||
June
15, 2009
|
1.8816 | 1.7698 | 1.5845 | 1.2743 | 1.0298 | 0.7775 | 0.5632 | 0.4267 | 0.1948 | 0.1109 | 0.0555 | 0.0347 | ||||||||||||||||||||||||||||||||||||
December
15, 2009
|
1.8508 | 1.7338 | 1.5400 | 1.2170 | 0.9646 | 0.7078 | 0.4946 | 0.3628 | 0.1528 | 0.0851 | 0.0441 | 0.0282 | ||||||||||||||||||||||||||||||||||||
June
15, 2010
|
1.8271 | 1.7028 | 1.4973 | 1.1560 | 0.8920 | 0.6283 | 0.4163 | 0.2910 | 0.1095 | 0.0605 | 0.0332 | 0.0217 | ||||||||||||||||||||||||||||||||||||
December
15, 2010
|
1.8136 | 1.6788 | 1.4558 | 1.0867 | 0.8045 | 0.5300 | 0.3208 | 0.2063 | 0.0660 | 0.0380 | 0.0227 | 0.0152 | ||||||||||||||||||||||||||||||||||||
June
15, 2011
|
1.8257 | 1.6749 | 1.4238 | 1.0052 | 0.6883 | 0.3940 | 0.1939 | 0.1029 | 0.0276 | 0.0190 | 0.0123 | 0.0083 | ||||||||||||||||||||||||||||||||||||
December
20, 2011
|
1.9275 | 1.7613 | 1.4764 | 0.9656 | 0.5206 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
Effective
Date
|
$ | 127.25 | $ | 130.00 | $ | 135.00 | $ | 145.00 | $ | 155.00 | $ | 168.61 | $ | 185.00 | $ | 200.00 | $ | 250.00 | $ | 300.00 | $ | 400.00 | $ | 500.00 | ||||||||||||||||||||||||
December
11, 2007
|
1.9275 | 1.8396 | 1.6844 | 1.4205 | 1.2071 | 0.9786 | 0.7729 | 0.6322 | 0.3548 | 0.2239 | 0.1124 | 0.0664 | ||||||||||||||||||||||||||||||||||||
June
15, 2008
|
1.9275 | 1.8417 | 1.6810 | 1.4086 | 1.1892 | 0.9553 | 0.7464 | 0.6047 | 0.3306 | 0.2053 | 0.1023 | 0.0608 | ||||||||||||||||||||||||||||||||||||
December
15, 2008
|
1.9173 | 1.8182 | 1.6534 | 1.3748 | 1.1514 | 0.9147 | 0.7053 | 0.5650 | 0.2994 | 0.1827 | 0.0905 | 0.0541 | ||||||||||||||||||||||||||||||||||||
June
15, 2009
|
1.8878 | 1.7860 | 1.6169 | 1.3320 | 1.1048 | 0.8660 | 0.6571 | 0.5189 | 0.2649 | 0.1585 | 0.0783 | 0.0473 | ||||||||||||||||||||||||||||||||||||
December
15, 2009
|
1.8594 | 1.7543 | 1.5798 | 1.2870 | 1.0549 | 0.8132 | 0.6046 | 0.4691 | 0.2284 | 0.1338 | 0.0664 | 0.0407 | ||||||||||||||||||||||||||||||||||||
June
15, 2010
|
1.8357 | 1.7262 | 1.5448 | 1.2413 | 1.0026 | 0.7566 | 0.5480 | 0.4154 | 0.1904 | 0.1089 | 0.0548 | 0.0342 | ||||||||||||||||||||||||||||||||||||
December
15, 2010
|
1.8160 | 1.7007 | 1.5100 | 1.1925 | 0.9447 | 0.6929 | 0.4842 | 0.3554 | 0.1503 | 0.0841 | 0.0436 | 0.0279 | ||||||||||||||||||||||||||||||||||||
June
15, 2011
|
1.8007 | 1.6778 | 1.4748 | 1.1380 | 0.8777 | 0.6181 | 0.4097 | 0.2865 | 0.1083 | 0.0600 | 0.0329 | 0.0215 | ||||||||||||||||||||||||||||||||||||
December
15, 2011
|
1.7951 | 1.6614 | 1.4403 | 1.0745 | 0.7952 | 0.5239 | 0.3174 | 0.2043 | 0.0657 | 0.0378 | 0.0226 | 0.0150 | ||||||||||||||||||||||||||||||||||||
June
15, 2012
|
1.8158 | 1.6656 | 1.4154 | 0.9987 | 0.6835 | 0.3910 | 0.1925 | 0.1023 | 0.0275 | 0.0188 | 0.0121 | 0.0081 | ||||||||||||||||||||||||||||||||||||
December
20, 2012
|
1.9275 | 1.7613 | 1.4764 | 0.9656 | 0.5206 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
Named Executive
Officer
|
Base
Salary
|
Robert
L. Long
Chief
Executive Officer
|
$925,000
|
Jean
P. Cahuzac
Executive
Vice President, Assets
|
$550,000
|
Steven
L. Newman
Executive
Vice President, Performace
|
$465,000
|
Gregory
L. Cauthen
Senior
Vice President and Chief Financial Officer
|
$410,000
|
Eric
B. Brown
Senior
Vice President and General Counsel
|
$390,000
|
Jurisdiction
|
Percent Owned
|
|
15375
Memorial Corporation
|
Delaware
|
100.00%
|
Agua
Profundas Limitada
|
Angola
|
60.00%
|
Applied
Drilling Technology Inc.
|
Texas
|
100.00%
|
Arcade
Drilling AS
|
Norway
|
100.00%
|
Ashgrove
Carriers Ltd.
|
Liberia
|
50.00%
|
Blegra
Asset Holdings Limited
|
Cyprus
|
100.00%
|
Blegra
Asset Management Limited
|
Cyprus
|
100.00%
|
Blegra
Financing Limited
|
Cyprus
|
100.00%
|
Blegra
Holdings Limited
|
Cyprus
|
100.00%
|
Campeche
Drilling Services Inc.
|
Delaware
|
100.00%
|
Caspian
Sea Ventures International Ltd.
|
British
Virgin Islands
|
100.00%
|
Challenger
Minerals (Accra) Inc.
|
Cayman
Islands
|
100.00%
|
Challenger
Minerals (Celtic Sea) Limited
|
British
Virgin Islands
|
100.00%
|
Challenger
Minerals (Nigeria) Limited
|
NIgeria
|
100.00%
|
Challenger
Minerals (North Sea) Limited
|
Scotland
|
100.00%
|
Challenger
Minerals Inc.
|
California
|
100.00%
|
Cliffs
Drilling do Brasil Servicos de Petroleo S/C Ltda.
|
Brazil
|
100.00%
|
Covent
Garden - Serviços e Marketing Sociedade Unipessoal Lda
|
Portugal
|
100.00%
|
Deepwater
Drilling II L.L.C.
|
Delaware
|
100.00%
|
Deepwater
Drilling L.L.C.
|
Delaware
|
100.00%
|
Deepwater
Pacific 1 Inc.
|
British
Virgin Islands
|
50.00%
|
Deepwater
Pacific 2 Inc.
|
British
Virgin Islands
|
50.00%
|
Eaton
Industries of Houston, Inc.
|
Texas
|
100.00%
|
Elder
Trading Co.
|
Liberia
|
50.00%
|
Entities
Holdings, Inc.
|
Delaware
|
100.00%
|
Falcon
Atlantic Ltd.
|
Cayman
Islands
|
100.00%
|
Global
Marine Inc.
|
Delaware
|
100.00%
|
Global
Offshore Drilling Limited
|
Nigeria
|
70.00%
|
GlobalSantaFe
(Africa) Inc.
|
Cayman
Islands
|
100.00%
|
GlobalSantaFe
(Labuan) Inc.
|
Malaysia
|
100.00%
|
GlobalSantaFe
(Norge) AS
|
Norway
|
100.00%
|
GlobalSantaFe
AG
|
Switzerland
|
97.00%
|
GlobalSantaFe
Arctic Ltd.
|
Canada
|
100.00%
|
GlobalSantaFe
B.V.
|
Netherlands
|
100.00%
|
GlobalSantaFe
Beaufort Sea Inc.
|
Delaware
|
100.00%
|
GlobalSantaFe
C.R. Luigs Limited
|
England
|
100.00%
|
GlobalSantaFe
Campeche Holdings LLC
|
Delaware
|
100.00%
|
GlobalSantaFe
Caribbean Inc.
|
California
|
100.00%
|
GlobalSantaFe
Communications, Inc.
|
Delaware
|
100.00%
|
GlobalSantaFe
Corporate Services Inc.
|
Delaware
|
100.00%
|
GlobalSantaFe
de Venezuela Inc.
|
Delaware
|
100.00%
|
GlobalSantaFe
Deepwater Drilling LLC
|
Delaware
|
100.00%
|
GlobalSantaFe
Denmark Holdings ApS
|
Denmark
|
100.00%
|
GlobalSantaFe
Development Inc.
|
California
|
100.00%
|
GlobalSantaFe
do Brasil Ltda.
|
Brazil
|
100.00%
|
GlobalSantaFe
Drilling (N.A.) N.V.
|
Netherlands
Antilles
|
100.00%
|
GlobalSantaFe
Drilling (South Atlantic) Inc.
|
British
Virgin Islands
|
100.00%
|
GlobalSantaFe
Drilling Company
|
Delaware
|
100.00%
|
GlobalSantaFe
Drilling Company (Canada) Limited
|
Nova
Scotia
|
100.00%
|
GlobalSantaFe
Drilling Company (North Sea) Limited
|
England
|
100.00%
|
GlobalSantaFe
Drilling Company (Overseas) Limited
|
England
|
100.00%
|
GlobalSantaFe
Drilling Mexico, S. de R.L. de C.V.
|
Mexico
|
100.00%
|
GlobalSantaFe
Drilling Operations Inc.
|
Cayman
Islands
|
100.00%
|
GlobalSantaFe
Drilling Services (North Sea) Limited
|
England
|
100.00%
|
GlobalSantaFe
Drilling Trinidad LLC
|
Delaware
|
100.00%
|
GlobalSantaFe
Drilling U.K. Limited
|
Scotland
|
100.00%
|
GlobalSantaFe
Drilling Venezuela, C.A.
|
Venezuela
|
100.00%
|
GlobalSantaFe
Financial Services (Luxembourg) S.a.r.l.
|
Luxembourg
|
100.00%
|
GlobalSantaFe
GOM Services Inc.
|
British
Virgin Islands
|
100.00%
|
GlobalSantaFe
Group Financing Limited Liability Company
|
Hungary
|
100.00%
|
GlobalSantaFe
Holding Company (North Sea) Limited
|
England
|
100.00%
|
GlobalSantaFe
Hungary Services Limited Liability Company
|
Hungary
|
100.00%
|
GlobalSantaFe
International (Canada) Drilling Company
|
Nova
Scotia
|
100.00%
|
GlobalSantaFe
International Drilling Corporation
|
Bahamas
|
100.00%
|
GlobalSantaFe
International Drilling Inc.
|
British
Virgin Islands
|
100.00%
|
GlobalSantaFe
International Services Inc.
|
Panama
|
100.00%
|
GlobalSantaFe
Leasing Corporation
|
Bahamas
|
100.00%
|
GlobalSantaFe
Leasing Limited
|
British
Virgin Islands
|
100.00%
|
GlobalSantaFe
Mexico Holdings LLC
|
Delaware
|
100.00%
|
GlobalSantaFe
Nederland B.V.
|
Netherlands
|
100.00%
|
GlobalSantaFe
North Sea Limited
|
Bahamas
|
100.00%
|
GlobalSantaFe
Offshore Services Inc.
|
Cayman
Islands
|
100.00%
|
GlobalSantaFe
Onshore Services Limited
|
Scotland
|
100.00%
|
GlobalSantaFe
Operations (Australia) Pty Ltd
|
Australia
|
100.00%
|
GlobalSantaFe
Operations (BVI) Inc.
|
British
Virgin Islands
|
100.00%
|
GlobalSantaFe
Operations (Mexico) LLC
|
Delaware
|
100.00%
|
GlobalSantaFe
Operations Inc.
|
Cayman
Islands
|
100.00%
|
GlobalSantaFe
Overseas Limited
|
Bahamas
|
100.00%
|
GlobalSantaFe
Saudi Arabia Ltd.
|
British
Virgin Islands
|
100.00%
|
GlobalSantaFe
Services (BVI) Inc.
|
British
Virgin Islands
|
100.00%
|
GlobalSantaFe
Services (Egypt) LLC
|
Egypt
|
100.00%
|
GlobalSantaFe
Services Netherlands B.V.
|
Netherlands
|
100.00%
|
GlobalSantaFe
Servicios de Venezuela, C.A.
|
Venezuela
|
100.00%
|
GlobalSantaFe
South America LLC
|
Delaware
|
100.00%
|
GlobalSantaFe
Southeast Asia Drilling Pte. Ltd.
|
Singapore
|
100.00%
|
GlobalSantaFe
Tampico, S. de R.L. de C.V.
|
Mexico
|
100.00%
|
GlobalSantaFe
Technical Services Egypt LLC
|
Egypt
|
100.00%
|
GlobalSantaFe
Techserv (North Sea) Limited
|
England
|
100.00%
|
GlobalSantaFe
U.S. Drilling Inc.
|
Delaware
|
100.00%
|
GlobalSantaFe
U.S. Holdings Inc.
|
Delaware
|
100.00%
|
GlobalSantaFe
West Africa Drilling Limited
|
Bahamas
|
100.00%
|
GSF
Caymans Holdings Inc.
|
Cayman
Islands
|
100.00%
|
Hellerup
Finance International Ltd.
|
Ireland
|
100.00%
|
Intermarine
Services (International) Limited
|
Bahamas
|
100.00%
|
Intermarine
Services Inc.
|
Texas
|
100.00%
|
Intermarine
Serviços Petroliferos Ltda.
|
Brazil
|
100.00%
|
International
Chandlers, Inc.
|
Texas
|
100.00%
|
Key
Perfuracoes Maritimas Limitada
|
Brazil
|
100.00%
|
MSF
Offshore Services India Private Limited
|
India
|
100.00%
|
NRB
Drilling Services Limited
|
Nigeria
|
60.00%
|
Oilfield
Services, Inc.
|
Cayman
Islands
|
100.00%
|
Overseas
Drilling Ltd.
|
Cayman
Islands
|
50.00%
|
P.T.
Santa Fe Supraco Indonesia
|
Indonesia
|
95.00%
|
Platform
Capital N.V.
|
Netherlands
Antilles
|
100.00%
|
Platform
Financial N.V.
|
Netherlands
Antilles
|
100.00%
|
PT
Hitek Nusantara Offshore Drilling
|
Indonesia
|
80.00%
|
PT
Transocean Indonesia
|
Indonesia
|
100.00%
|
R&B
Falcon (A) Pty Ltd
|
Australia
|
100.00%
|
R&B
Falcon (Caledonia) Ltd.
|
England
|
100.00%
|
R&B
Falcon (Ireland) Limited
|
Ireland
|
100.00%
|
R&B
Falcon (U.K.) Ltd.
|
England
|
100.00%
|
R&B
Falcon B.V.
|
Netherlands
|
100.00%
|
R&B
Falcon Deepwater (UK) Limited
|
England
|
100.00%
|
R&B
Falcon Drilling (International & Deepwater) Inc. LLC
|
Delaware
|
100.00%
|
R&B
Falcon Drilling Co. LLC
|
Oklahoma
|
100.00%
|
R&B
Falcon Drilling Limited, LLC
|
Oklahoma
|
100.00%
|
R&B
Falcon Exploration Co. LLC
|
Oklahoma
|
100.00%
|
R&B
Falcon International Energy Services B.V.
|
Netherlands
|
100.00%
|
R&B
Falcon Offshore Limited, LLC
|
Oklahoma
|
100.00%
|
R&B
Falcon, Inc. LLC
|
Oklahoma
|
100.00%
|
RB
Mediterranean Ltd.
|
Cayman
Islands
|
100.00%
|
RBF
(Nigeria) Limited
|
Nigeria
|
100.00%
|
RBF
Drilling Co. LLC
|
Oklahoma
|
100.00%
|
RBF
Drilling Services, Inc. LLC
|
Oklahoma
|
100.00%
|
RBF
Exploration LLC
|
Delaware
|
100.00%
|
RBF
Finance Co.
|
Delaware
|
100.00%
|
RBF
Rig Corporation, LLC
|
Oklahoma
|
100.00%
|
RBF
Servicos Angola, Limitada
|
Angola
|
100.00%
|
Reading
& Bates Coal Co., LLC
|
Nevada
|
100.00%
|
Reading
& Bates-Demaga Perfuracoes Ltda.
|
Brazil
|
100.00%
|
Resource
Rig Supply Inc.
|
Delaware
|
100.00%
|
Ranger
Insurance Limited
|
Cayman
Islands
|
100.00%
|
Santa
Fe Braun Inc.
|
Delaware
|
100.00%
|
Santa
Fe Construction Company
|
Delaware
|
100.00%
|
Santa
Fe Drilling (Nigeria) Limited
|
Nigeria
|
60.00%
|
Santa
Fe Drilling Company (U.K.) Limited
|
England
|
100.00%
|
Santa
Fe Drilling Company of Venezuela, C.A.
|
California
|
100.00%
|
Santa
Fe Servicos de Perfuracao Limitada
|
Brazil
|
100.00%
|
Saudi
Drilling Company Limited
|
Saudi
Arabia
|
100.00%
|
SDS
Offshore Ltd.
|
U.K.
|
100.00%
|
Sedco
Forex Corporation
|
Delaware
|
100.00%
|
Sedco
Forex Holdings Limited
|
British
Virgin Islands
|
100.00%
|
Sedco
Forex International Drilling, Inc.
|
Panama
|
100.00%
|
Sedco
Forex International Services, S.A.
|
Panama
|
100.00%
|
Sedco
Forex International, Inc.
|
Panama
|
100.00%
|
Sedco
Forex of Nigeria Limited
|
Nigeria
|
60.00%
|
Sedco
Forex Technology, Inc.
|
Panama
|
100.00%
|
Sedneth
Panama S.A.
|
Panama
|
100.00%
|
Sefora
Maritime Ltd.
|
British
Virgin Islands
|
100.00%
|
Services
Petroliers Sedco Forex
|
France
|
100.00%
|
Shore
Services, LLC
|
Texas
|
100.00%
|
Sonat
Brasocean Servicos de Perfuracoes Ltda.
|
Brazil
|
100.00%
|
Sonat
Offshore do Brasil Perfuracoes Maritimos Ltda.
|
Brazil
|
100.00%
|
Sonat
Offshore S.A.
|
Panama
|
100.00%
|
T.I.
Internationa Mexico S. de R.L. de C.V.
|
Mexico
|
100.00%
|
Transocean
(Mediterranean & Red Sea) Drilling Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Alaskan Ventures Inc.
|
Delaware
|
100.00%
|
Transocean
Asie Services Sdn Bhd.
|
Malaysia
|
100.00%
|
Transocean
Benefit Services SRL
|
Barbados
|
100.00%
|
Transocean
Brasil Ltda.
|
Brazil
|
100.00%
|
Transocean
Canada Co.
|
Nova
Scotia
|
100.00%
|
Transocean
Construction Management Ltd.
|
Cayman
Islands
|
100.00%
|
Transocean
Cunningham LLC
|
Delaware
|
100.00%
|
Transocean
Deepwater Frontier Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Deepwater Holdings Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Deepwater Inc.
|
Delaware
|
100.00%
|
Transocean
Deepwater Nautilus Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Deepwater Pathfinder Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Discoverer 534 LLC
|
Delaware
|
100.00%
|
Transocean
Drilling (Nigeria) Ltd.
|
Nigeria
|
100.00%
|
Transocean
Drilling (U.S.A.) Inc.
|
Texas
|
100.00%
|
Transocean
Drilling Ltd.
|
U.K.
|
100.00%
|
Transocean
Drilling Sdn. Bhd.
|
Malaysia
|
100.00%
|
Transocean
Drilling Services Inc.
|
Delaware
|
100.00%
|
Transocean
Eastern Pte Ltd
|
Singapore
|
100.00%
|
Transocean
Enterprise Inc.
|
Delaware
|
100.00%
|
Transocean
Europe Holdings Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Europe Ventures Holdings Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Finance Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Holdings LLC
|
Delaware
|
100.00%
|
Transocean
I AS
|
Norway
|
100.00%
|
Transocean
International Drilling Limited
|
Cayman
Islands
|
100.00%
|
Transocean
International Drilling, Inc.
|
Delaware
|
100.00%
|
Transocean
International Resources Limited
|
British
Virgin Islands
|
100.00%
|
Transocean
Investimentos Ltda.
|
Brazil
|
100.00%
|
Transocean
Investments S.a.r.l.
|
Luxembourg
|
100.00%
|
Transocean
Jupiter LLC
|
Delaware
|
100.00%
|
Transocean
LR34 LLC
|
Delaware
|
100.00%
|
Transocean
Management Inc.
|
Delaware
|
100.00%
|
Transocean
Mediterranean LLC
|
Delaware
|
100.00%
|
Transocean
Nautilus Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore (Cayman) Inc.
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore (North Sea) Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore (U.K.) Inc.
|
Delaware
|
100.00%
|
Transocean
Offshore Canada Services Ltd.
|
Alberta
|
100.00%
|
Transocean
Offshore Caribbean Sea, L.L.C.
|
Delaware
|
100.00%
|
Transocean
Offshore D.V. Inc
|
Delaware
|
100.00%
|
Transocean
Offshore Deepwater Drilling Inc.
|
Delaware
|
100.00%
|
Transocean
Offshore Deepwater Holdings Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore Drilling Limited
|
U.K.
|
100.00%
|
Transocean
Offshore Drilling Services, LLC
|
Delaware
|
100.00%
|
Transocean
Offshore Europe Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore Holdings Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore International Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore International Ventures Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore Nigeria Ltd.
|
Nigeria
|
100.00%
|
Transocean
Offshore Norway Inc.
|
Delaware
|
100.00%
|
Transocean
Offshore Services Ltd.
|
Cayman
Islands
|
100.00%
|
Transocean
Offshore USA Inc.
|
Delaware
|
100.00%
|
Transocean
Offshore Ventures Inc.
|
Delaware
|
100.00%
|
Transocean
Pacific Drilling Holdings Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Pacific Drilling Inc.
|
British
Virgin Islands
|
50.00%
|
Transocean
Payroll Services SRL
|
Barbados
|
100.00%
|
Transocean
Perfuracoes Ltda.
|
Brazil
|
100.00%
|
Transocean
Richardson LLC
|
Delaware
|
100.00%
|
Transocean
Sedco Forex Ventures Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Services AS
|
Norway
|
100.00%
|
Transocean
Services UK Ltd.
|
U.K.
|
100.00%
|
Transocean
Seven Seas LLC
|
Delaware
|
100.00%
|
Transocean
Support Services Limited
|
Cayman
Islands
|
100.00%
|
Transocean
Support Services Nigeria Ltd.
|
Nigeria
|
100.00%
|
Transocean
Support Services Pvt. Ltd.
|
India
|
100.00%
|
Transocean
Technical Services Inc.
|
Panama
|
100.00%
|
Transocean
Treasury Services SRL
|
Barbados
|
100.00%
|
Transocean
UK Limited
|
U.K.
|
100.00%
|
Transocean
Worldwide Inc.
|
Cayman
Islands
|
100.00%
|
Triton
Asset Limited
|
Cayman
Islands
|
100.00%
|
Triton
Asset Management Limited
|
Cayman
Islands
|
100.00%
|
Triton
Drilling Limited
|
Cayman
Islands
|
100.00%
|
Triton
Drilling Mexico LLC
|
Delaware
|
100.00%
|
Triton
Financing Kft.
|
Hungary
|
100.00%
|
Triton
Holdings Limited
|
British
Virgin Islands
|
100.00%
|
Triton
Hungary Asset Management Kft.
|
Hungary
|
100.00%
|
Triton
Hungary Investments 1 Kft.
|
Hungary
|
100.00%
|
Triton
Hungary Investments 2 Kft.
|
Hungary
|
100.00%
|
Triton
Industries, Inc.
|
Panama
|
100.00%
|
Triton
Management Services Kft.
|
Hungary
|
100.00%
|
Triton
Nautilus Asset Management Kft.
|
Hungary
|
100.00%
|
Triton
Offshore Leasing Services Limited
|
Labuan,
Malaysia
|
100.00%
|
Triton
Pacific Limited
|
U.K.
|
100.00%
|
Turnkey
Ventures de Mexico Inc.
|
Delaware
|
100.00%
|
Wilrig
Drilling (Canada) Inc.
|
Canada
|
100.00%
|
Wilrig
Offshore (UK) Ltd.
|
U.K.
|
100.00%
|
(1)
|
Registration
Statement (Form S-3 No. 333-58604),
|
|
(2)
|
Registration
Statement (Form S-4 No. 333-46374 as amended by Post- Effective Amendments
on Form S-8 and Form S-3),
|
|
(3)
|
Registration
Statement (Form S-4 No. 333-54668 as amended by Post-Effective Amendments
on Form S-8 and Form S-3),
|
|
(4)
|
Registration
Statement (Form S-8 No. 033-64776),
|
|
(5)
|
Registration
Statement (Form S-8 No. 033-66036),
|
|
(6)
|
Registration
Statement (Form S-8 No. 333-12475),
|
|
(7)
|
Registration
Statement (Form S-8 No. 333-58211),
|
|
(8)
|
Registration
Statement (Form S-8 No. 333-58203),
|
|
(9)
|
Registration
Statement (Form S-8 No. 333-94543),
|
|
(10)
|
Registration
Statement (Form S-8 No. 333-94569),
|
|
(11)
|
Registration
Statement (Form S-8 No. 333-94551),
|
|
(12)
|
Registration
Statement (Form S-8 No. 333-75532),
|
|
(13)
|
Registration
Statement (Form S-8 No. 333-75540),
|
|
(14)
|
Registration
Statement (Form S-8 No. 333-106026),
|
|
(15)
|
Registration
Statement (Form S-8 No. 333-115456),
|
|
(16)
|
Registration
Statement (Form S-8 No. 333-130282),
|
|
(17)
|
Registration
Statement (Form S-8 No. 333-147669),
|
|
(18)
|
Registration
Statement (Form S-8 No. 333-147670), and
|
|
(19)
|
Registration
Statement (Form S-3 No.
333-147785);
|
/s/
Ernst & Young LLP
|
|
Houston,
Texas
|
|
February
27, 2008
|
By:
|
/s/ W. Richard Anderson
|
|
Name:
W. RICHARD
ANDERSON
|
By:
|
/s/ J. Michael Talbert
|
|
Name:
J. MICHAEL
TALBERT
|
By:
|
/s/ Thomas W. Cason
|
|
Name:
THOMAS W.
CASON
|
By:
|
/s/ Richard L. George
|
|
Name:
RICHARD L.
GEORGE
|
By:
|
/s/ Victor E. Grijalva
|
|
Name:
VICTOR E.
GRIJALVA
|
By:
|
/s/ Jon A. Marshall
|
|
Name:
JON A.
MARSHALL
|
By:
|
/s/ Martin B. McNamara
|
|
Name:
MARTIN B.
MCNAMARA
|
By:
|
/s/ Edward R. Muller
|
|
Name:
EDWARD R.
MULLER
|
By:
|
/s/ Robert E. Rose
|
|
Name:
ROBERT E.
ROSE
|
By:
|
/s/ Kristian Siem
|
|
Name:
KRISTIAN
SIEM
|
By:
|
/s/ Robert M. Sprague
|
|
Name:
ROBERT M.
SPRAGUE
|
By:
|
/s/ Ian C. Strachan
|
|
Name:
IAN C.
STRACHAN
|
By:
|
/s/ John L. Whitmire
|
|
Name:
JOHN L.
WHITMIRE
|
1.
|
I
have reviewed this report on Form 10-K of Transocean
Inc.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and we
have:
|
|
a)
|
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
and
|
|
c)
|
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d)
|
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of registrant’s board of
directors (or persons performing the equivalent
function):
|
|
a)
|
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
b)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date: February 27,
2008
|
/s/ Robert L. Long
|
||
Robert
L. Long
|
|||
Chief
Executive Officer
|
1.
|
I
have reviewed this report on Form 10-K of Transocean
Inc.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by
this report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and we
have:
|
a)
|
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
and
|
c)
|
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation;
and
|
d)
|
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of registrant’s board of
directors (or persons performing the equivalent
function):
|
|
a)
|
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
b)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date: February 27,
2008
|
/s/ Gregory L. Cauthen
|
||
Gregory
L. Cauthen
|
|||
Senior
Vice President and Chief Financial Officer
|
|
(1)
|
the
Company’s Annual Report on Form 10-K for the year ended
December 31, 2007 (the “Report”) fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
and
|
|
(2)
|
information
contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the
Company.
|
Dated:
February 27, 2008
|
/s/ Robert L. Long
|
|||
Name:
|
Robert
L. Long
|
|||
Chief
Executive Officer
|
|
(1)
|
the
Company’s Annual Report on Form 10-K for the year ended
December 31, 2007 (the “Report”) fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
and
|
|
(2)
|
information
contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the
Company.
|
Dated:February 27,
2008
|
/s/ Gregory L. Cauthen
|
|||
Name:
|
Gregory
L. Cauthen
|
|||
Senior
Vice President and
|
||||
Chief
Financial Officer
|