Diamond Offshore Announces New Semisubmersible Rig Order and Three-Year Drilling Contract

  Diamond Offshore Announces New Semisubmersible Rig Order and Three-Year
  Drilling Contract

Business Wire

HOUSTON -- May 29, 2013

Diamond Offshore Drilling, Inc. (NYSE: DO) today announced an agreement with
Hyundai Heavy Industries Co., Ltd. to build a new Moss CS60E design harsh
environment semisubmersible drilling rig. The 10,000’ dynamically positioned
rig is expected to be delivered after November 2015. Projected capital cost of
the unit including spares, commissioning and shipyard supervision is
approximately $755 million.

The Company also announced that a three-year drilling contract has been
entered into with a subsidiary of BP plc (NYSE: BP) to utilize the rig for
initial operations off the coast of South Australia. The initial operating
dayrate under the drilling contract is $585,000 per day and is subject to
upward adjustment for certain increased operating costs and equipment
modifications.

“We are pleased to have been selected by BP for this important work,”
commented Larry Dickerson, Diamond Offshore’s CEO. “Our Company, and its
predecessors, have been continuously active in Australia since 1982, drilling
over 600 wells; far more than any other drilling contractor. We believe that
this market-leading experience should enable Diamond Offshore to play a key
role in our customer’s exploration efforts and we look forward to this
opportunity.”

ABOUT DIAMOND OFFSHORE

Diamond Offshore provides contract drilling services to the energy industry
and is a leader in deepwater drilling. Diamond Offshore’s fleet of offshore
drilling rigs consists of 30 semisubmersibles, seven jack-ups and one
drillship, in addition to four ultra-deepwater drillships and three deepwater
semisubmersibles currently under construction. Additional information about
the Company and access to the Company’s SEC filings is available on the
Internet at www.diamondoffshore.com. Diamond Offshore is owned 50.4% by Loews
Corporation (NYSE: L).

FORWARD-LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are
“forward-looking statements” within the meaning of the federal securities
laws. Such statements include, but are not limited to, statements concerning
future performance under contract awards, future operations and dayrates,
future rig construction and upgrades and expected expenditures therefor, the
expected delivery date, projected capital costs, and future contracting
opportunities. Forward-looking statements are inherently uncertain and subject
to a variety of assumptions, risks and uncertainties that could cause actual
results to differ materially from those anticipated or expected by management
of the Company.

A discussion of the important risk factors and other considerations that could
materially impact these matters as well as the Company’s overall business and
financial performance can be found in the Company’s reports filed with the
Securities and Exchange Commission and readers of this press release are urged
to review those reports carefully when considering these forward-looking
statements. Copies of these reports are available through the Company’s
website at www.diamondoffshore.com. These factors include, among others,
general economic and business conditions, contract cancellations, customer
bankruptcy, operating risks, casualty losses, industry fleet capacity, changes
in foreign and domestic oil and gas exploration and production activity,
competition, changes in foreign, political, social and economic conditions,
regulatory initiatives and compliance with governmental regulations, customer
preferences and various other matters, many of which are beyond the Company’s
control.

Given these risk factors, investors and analysts should not place undue
reliance on forward-looking statements. Each forward-looking statement speaks
only as of the date of this press release. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward-looking statement to reflect any change in the Company’s expectations
with regard thereto or any change in events, conditions or circumstances on
which any forward-looking statement is based.

Contact:

Diamond Offshore Drilling, Inc.
Darren Daugherty, (281) 492-5370
Director, Investor Relations
 
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