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					                                                                            MORGAN            STANLEY              RESEARCH
                                                                            NORTH          AMERICA


                                                                            Morgan Stanley & Co. Incorporated   Ole Slorer
                                                                                                                Ole.Slorer@morganstanley.com
                                                                                                                +1 212 761 6198

                                                                                                                Igor Levi
                                                                                                                Igor.Levi@morganstanley.com
                                                                                                                +1 212 761 3232


                December 16, 2010


Stock Rating    Transocean
Equal-weight

Industry View
                Strong Outperformance
Attractive
                Leaves Limited Upside                                       Key Ratios and Statistics
                                                                            Reuters: RIG.N Bloomberg: RIG US
                                                                            Oil Services, Drilling & Equipment / United States of America
                What's Changed                                              Price target                                                       $80.00
                Rating                         Overweight to Equal-weight   Shr price, close (Dec 15, 2010)                                    $71.89
                                                                            Mkt cap, curr (mm)                                                $22,934
                                                                            52-Week Range                                                $94.88-41.88
                We are lowering RIG to Equal-weight following strong
                relative performance over the last six months, while a      Fiscal Year ending                     12/09    12/10e    12/11e       12/12e

                wave of newbuild orders is likely to drag out recovery in   ModelWare EPS ($)                     11.38       6.41      6.60        7.80
                older jackups and floaters, which represent a substantial   Consensus EPS ($)§                    11.39       6.21      7.19        7.39
                                                                            P/E                                     7.3       11.2      10.9          9.2
                percentage of RIG’s fleet value. We additionally see
                                                                            EV/EBITDA                               5.9        6.6        6.1         5.5
                increased uncertainty following the lawsuit filed by the
                                                                            EBITDA ($mm)                          6,305      4,656     4,704       4,858
                US Department of Justice.                                   Capex ($mm)                           3,052      1,404       928         928
                                                                            FCFfY ($mm)                           2,917      3,048     2,859       3,084
                Recent share outperformance leaves just 10%                 Net debt ($mm)                       10,549      7,954     6,929       4,857
                upside to our price target. Shares have rallied 60%         FCF yld ratio (%)                      10.9       15.3      12.2        13.6
                                                                            Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare
                over the last six months outperforming its peers by about   framework (please see explanation later in this note).
                20%. This leaves just 10% upside to our price target        § = Consensus data is provided by FactSet Estimates.
                                                                            e = Morgan Stanley Research estimates
                compared to ~50% for our Overweight-rated stocks.
                                                                            Quarterly ModelWare EPS
                The recent surge in newbuild orders is likely to
                delay recovery in RIG’s older jackups and floaters,                                               2010e     2010e     2011e        2011e
                                                                            Quarter                     2009       Prior Current        Prior Current
                providing downside to our below-consensus estimate for
                2011. The company’s older jackups and floaters              Q1                           3.74           -    2.22a             -    1.52
                                                                            Q2                           2.79           -    1.66a             -    1.55
                comprise over 50% of its gross rig value. RIG’s jackups
                                                                            Q3                           2.65           -    1.28a             -    1.76
                and floaters have an average age of about 25 years and
                                                                            Q4                           2.21           -     1.24             -    1.78
                20 years, respectively. We see increased risk to our        e = Morgan Stanley Research estimates, a = Actual company reported data
                2011 earnings estimate, which is ~10% below
                consensus, if the recovery for older rigs is meaningfully
                delayed.

                The US Department of Justice has filed
                long-awaited lawsuits over violations in the Deepwater
                Horizon incident against RIG and a number of other
                defendants. This marks the start of a potentially
                prolonged period of increased uncertainty. While we         Morgan Stanley does and seeks to do business with
                maintain our view that RIG’s contract requires              companies covered in Morgan Stanley Research. As
                indemnification and that gross negligence would be very     a result, investors should be aware that the firm may
                difficult to prove, the market’s heightened concern         have a conflict of interest that could affect the
                                                                            objectivity of Morgan Stanley Research. Investors
                around such an outcome could act as a headwind for the      should consider Morgan Stanley Research as only a
                stock.                                                      single factor in making their investment decision.
                                                                            For analyst certification and other important
                                                                            disclosures, refer to the Disclosure Section,
                                                                            located at the end of this report.
                                                                                                           MORGAN              STANLEY   RESEARCH

                                                                                                           December 16, 2010
                                                                                                           Transocean




Risk-Reward Snapshot: Transocean (RIG, PT $80, Equal-weight)
Litigation risks provides headwinds on a 12-month view
                                                                                                                                    Why Equal-weight?
    $ 120

                                                                                                                 $110 (+53%)        • RIG has outperformed its peers by
     100
                                                                                                                                      20% over the last six months, leaving
                                                                                                                                      just 10% upside to our price target
                                                                                                                                      compared to ~50% for our Overweight
      80                                                                           $ 71.89                    $80.00 (+11% )
                                                                                                                                      rated stocks.
                                                                                                                                    • Recent surge in newbuild orders is
      60
                                                                                                                                      likely to delay recovery for RIG’s older
                                                                                                                                      jackups and floaters, which represent
      40                                                                                                                              over 50% of the company’s gross fleet
                                                                                                                                      value.
                                                                                                                  $25 (-65%)
      20                                                                                                                            • This provides downside to our 2011
                                                                                                                                      estimate, which is already 10% below
         0                                                                                                                            consensus.
         Dec-08              Jun-09        Dec-09            Jun-10                Dec-10               Jun-11            Dec-11    • There is risk around litigation and
              Price Target (Dec-11)            Historical Stock Performance                       Current Stock Price
                                                                                                                                      emergence of new evidence following
Source: FactSet, Morgan Stanley Research                                                                                              recent suit filed by the US Department
                                                                                                                                      of Justice.
 Price Target, $80                    Based on ~150% of our 2011 NAV estimate of just over $50/sh, in
                                                                                                                                    • We may therefore be in for a period of
                                      line with previous downturns, and above its peers due to higher
                                      than average return of 15% on our 2011 rig value estimates.                                     uncertainty, not likely to go away over
                                                                                                                                      the near-term.
 Bull                 150% of         Drilling permit issuance resumes, favorable outcome in court:
 Case                 $75 2011e       The pace of permit issuance in the GoM picks up near historical                               Potential Catalysts
 $110                 NAV             levels while the mid-water market picks up in 2H11.
                                                                                                                                    • Permits to drill in the GoM begin to be
 Base                 150% of         Rates for older jackups and floaters do not see a recovery for                                  issued at a normal pace.
 Case                 $52 2011e       2 years: Ultra-deepwater rates continue to strengthen and RIG                                 • Positive outcome in court, as the
 $80                  NAV             continues to high-grade its older jackup fleet.                                                 company is indemnified for liabilities
 Bear                 100% of         Pressure on asset values as rates collapse to 2003/04 levels:
                                                                                                                                      related to the spill.
 Case                 $30 NAV         Long-lasting oversupply of rigs, coupled with a commodity slump                               • Operators moving rigs internationally,
 $25                  estimate +      brings asset values to 2003/04 levels RIG found liable in several                               without declaring force majeure.
                      liability       jurisdictions with indemnification loopholes.                                                 • News around the dividend dispute.
                                                                                                                                    • Shift in leading-edge rates.

RIG: NAV, Stock Price & 12-Month Target                                                                                             Where We Could Be Wrong
 $180
              Stock Price                                                                                                           • Liable of gross negligence in a variety
 $160                                                                                                                                 of jurisdictions with indemnification
              NAV per share
 $140                                                                                                                                 loopholes.
                                                                                                      MS Price Target
 $120                                                                                                                               • Dividend never issued
                                                                                                                                    • Delays to long-term deepwater drilling
 $100
                                                                                                                                      programs put an end to the recovery
   $80
                                                                                                                                      in ultra-deepwater rates.
   $60
   $40

   $20

    $-
         01          02        03     04      05        06        07          08             09       10         11       12

Source: FactSet, Morgan Stanley Research




                                                                                                                                                                           2
                                                                                              MORGAN         STANLEY             RESEARCH

                                                                                              December 16, 2010
                                                                                              Transocean




Exhibit 1
RIG Income Statement
($ in Millions)                                       2002       2003       2004      2005        2006       2007        2008        2009      2010E        2011E       2012E
INCOME STATEMENT
REVENUES:
Contract Drilling                                  2,673.9    2,346.3    2,467.6   2,757.1     3,745.3    5,948.0    10,756.0    10,607.0    9,179.9      9,762.2    10,287.0
Other Revenues                                         -          5.3       79.4      49.8        53.1      298.0     1,714.0       756.0      474.6        497.0       623.7
TOTAL REVENUES                                     2,673.9    2,434.3    2,613.9   2,891.7     3,914.7    6,377.0    12,674.0    11,556.0    9,810.5     10,411.2    11,062.6

OPERATING INCOME (EBITDA):
  Contract Drilling & Other                        1,179.7     840.9      894.7    1,167.4     1,759.5    3,655.0     7,363.0     6,534.0    4,856.7      4,937.6     5,096.0
  Net Reimbursables                                    -         -          -          -           -          -           -           -          -            -           -
  General & Administrative                           (65.6)    (57.3)     (67.0)     (74.8)      (90.3)    (119.0)     (196.0)     (203.0)    (239.6)      (241.4)     (246.2)
EBITDA                                             1,114.1     783.6      827.7    1,092.6     1,669.2    3,536.0     7,167.0     6,331.0    4,617.1      4,696.2     4,849.7

Depreciation & Amortization                         (500.3)   (508.2)    (524.6)   (405.8)      (400.8)    (499.0)   (1,390.0)   (1,464.0)   (1,594.5)   (1,619.3)   (1,619.3)
EBIT                                                 613.8     275.4      303.1     686.8      1,268.4    3,037.0     5,777.0     4,867.0     3,022.6     3,077.0     3,230.5

Interest Income                                       25.6      18.8        9.3       19.6        20.8       30.0        32.0         5.0       28.2        257.4       211.5
Interest (Expense)                                  (212.0)   (202.0)    (171.7)    (111.2)     (114.5)    (172.0)     (469.0)     (484.0)    (556.9)      (707.1)     (594.7)
Equity in Affiliates                                   7.8       5.1        9.2       10.1         7.5        -           -           -          -            -           -
Other, Net                                             3.4       2.8       11.2        3.1         1.2      (29.7)        4.0       (26.0)      39.0          8.0         8.0
EBT                                                  438.6     100.1      161.1      608.4     1,183.4    2,865.3     5,344.0     4,362.0    2,532.9      2,635.2     2,855.2

Income Taxes                                         (71.1)     (30.3)    (60.3)    (79.0)      (208.9)    (286.4)     (727.5)     (699.0)    (449.5)      (551.9)     (428.3)
Minority Interest                                     (2.4)      (0.2)      3.2       -            -          -           2.0        11.0      (23.0)         -           -
Net Income (Operating)                               365.1       69.6     104.0     529.4        974.5    2,578.9     4,618.6     3,674.0    2,060.5      2,083.3     2,426.9

Reconciliation to (GAAP) Reported Income:
Discontinued Operations                                -          -         -         -            -          -           -           -          -            -           -
Unusual Charges                                      149.6      (24.6)     48.7     186.2          -          -           -           -          -            -           -
Asset Impairments                                     (0.7)     (26.6)      -         -            -          -        (306.0)     (334.0)     (17.0)         -           -
Goodw ill Impairments                             (4,245.9)       -         -         -            -          -           -           -          -            -           -
Extraordinary Items                                    -          0.8       -         -          443.1      555.5      (110.6)     (159.0)     114.1          -           -
Reported (GAAP) Net Income                        (3,731.9)      19.2     152.7     715.6      1,417.6    3,134.4     4,202.0     3,181.0    2,157.6      2,083.3     2,426.9

Reported (GAAP) EPS                                 (11.70)     0.06       0.47       2.13        4.36     10.35       13.10        9.85        6.71        6.60        7.80
Diluted EPS (Operating)                               1.14      0.22       0.32       1.57        3.00      8.52       14.40       11.38        6.41        6.60        7.80
Diluted CEPS (Operating)                              2.71      1.80       1.93       2.78        4.23     10.17       18.73       15.94       11.39       11.75       13.02

Effective Tax Rate                                   16.2%     30.3%      37.4%     13.0%        17.6%     10.0%       13.6%       16.0%       17.7%       20.9%       15.0%
Earnings Allocated to Unvested Shares (diluted)        -         -          -         -            -         -           -          17.0        10.0         8.0         8.0
Convertible Interest                                   -         -          -         -            -         5.3        88.0       217.4       171.9       118.8       217.4
Diluted Shares Outstanding                           319.1     321.4      325.2     336.5        325.1     302.8       320.8       321.3       320.0       314.4       310.1
Source: Company data, Morgan Stanley Research estimates




                                                                                                                                                                             3
                                                                                                MORGAN            STANLEY             RESEARCH

                                                                                                December 16, 2010
                                                                                                Transocean




Exhibit 2
RIG Cash Flow Statement
CASH FLOW FROM OPERATIONS:                            2002       2003        2004      2005          2006         2007       2008        2009       2010E       2011E       2012E
   Net Income                                     (3,731.9)      19.2       152.7     715.6       1,417.6      3,134.4    4,202.0     3,170.0     2,180.6     2,083.3     2,426.9
   Depreciation                                      500.3      508.2       524.6     405.8         400.8        499.0    1,436.0     1,464.0     1,594.5     1,619.3     1,619.3
   Deferred Tax                                     (224.4)     (98.5)       18.1      34.7         (23.0)       (40.0)       8.0        13.0       (11.7)       21.1        21.1
   Equity in Earnings of JV                           (7.8)      (5.1)       (9.2)    (10.1)         (5.0)         -          -           -           -           -           -
   Amortization of OID                                 6.2      (24.3)      (21.2)     (6.6)         (0.7)         -          -           -           -           -           -
Δ in Working Capital:
   Δ in Receivables                                  179.4        19.8      (29.3)    (149.8)      (347.0)      (320.0)        -           -         (30.4)    (210.6)     (150.9)
   Δ in Payables & Other                             (78.8)        6.5        6.3       94.7        168.0         65.0         -           -          65.4      354.4       261.0
   Δ in Taxes Receiv/Payable                           8.9        27.8        1.2      (50.6)       124.0         32.0         -           -           -          -           -
   Δ in Other Assets                                  11.5         7.5       (5.3)     (21.9)       (32.0)       (33.0)     (439.0)      441.0        34.4     (138.6)     (170.7)
Other, Net                                         2,271.2    (1,938.3)     (33.8)    (142.6)      (434.0)      (280.0)     (248.0)      731.0        18.3       57.8         5.3
Cash From Operations (CFO)                           936.6       525.8      604.1      869.2      1,268.7      3,057.4     4,959.0     5,819.0     3,851.1    3,786.7     4,012.0
Capital Expenditures                                (141.0)     (113.1)    (127.0)    (181.9)      (876.0)    (1,380.0)   (2,208.0)   (3,052.0)   (1,404.0)    (927.6)     (928.3)
FREE CASH FLOW (FCF)                                 795.6       412.7      477.1      687.3        392.7      1,677.4     2,751.0     2,767.0     2,447.1    2,859.1     3,083.7

Acquisitions                                           -        (346.1)        -         -            -       (4,434.0)        -           -          -            -           -
Asset Sales                                           88.3         8.4        50.4      76.6        461.0        379.0       352.0        10.0       51.0          -           -
Joint Venture & Other Investments                      7.4         3.3        10.4       4.5          3.6       (242.0)       54.0       119.0       14.0          -           -
Proceeds from TODCO IPO/Secondary                      -           -         683.6     271.9          -            -           -           -          -            -           -
Dividends                                            (19.1)        -           -         -            -       (9,859.0)        -           -          -         (730.5)     (964.5)
Equity Issues                                          -           -           -        64.7         69.0        135.0        27.0         -          -            -           -
Stock Options                                         10.2        12.8        30.4     165.4         21.6          -           -           -          -            -           -
Purchase of Treasury Shares                            -           -           -      (400.0)    (2,601.0)      (400.0)        -           -       (242.0)    (1,000.0)        -
Other                                                 (5.9)      169.3       (67.6)     11.4        (25.3)       (44.4)     (393.0)       10.0      559.0          -           -
Net Change in Liquidity                              876.5       260.4     1,184.3     881.8     (1,678.4)   (12,788.0)    2,791.0     2,906.0    2,829.1      1,128.6     2,119.3
Net Change in Debt                                  (515.7)   (1,000.6)   (1,207.0)   (887.7)     1,700.0     13,562.0    (3,069.0)   (2,739.0)     952.3     (1,855.9)   (2,121.5)
Increase (Decrease) in Cash                          360.8      (740.2)      (22.7)     (5.9)        21.6        774.0      (278.0)      167.0    3,781.4       (727.3)       (2.2)
Source: Company data, Morgan Stanley Research estimates




                                                                                                                                                                                 4
                                                                                              MORGAN          STANLEY           RESEARCH

                                                                                              December 16, 2010
                                                                                              Transocean




Exhibit 3
RIG Balance Sheet
CURRENT ASSETS:                                       2002       2003       2004       2005        2006       2007       2008       2009      2010E      2011E      2012E
  Cash & Cash Equivalents                          1,214.2      474.0      451.3      445.4       467.0    1,241.0      963.0    1,130.0    4,911.4    4,184.1    4,181.8
  Short-term Investments                               -          -          -          -           -          -        333.0       38.0        -          -          -
  Accounts Receivable                                499.3      480.3      442.0      599.7       946.0    2,370.0    2,864.0    2,385.0    2,329.4    2,540.0    2,690.9
  Rig Inventory & Supplies                           155.8      152.0      144.7      156.2       160.0      333.0      432.0      462.0      486.8      543.5      581.3
  Deferred Income Taxes                               21.9       41.0       19.0       23.4        16.0      119.0       63.0      104.0      100.0      100.0      100.0
  Other Current Assets                                20.5       31.6       52.1       54.4        67.0      233.0      694.0      357.0      401.8      483.6      616.5
TOTAL CURRENT ASSETS                               1,911.7    1,178.9    1,109.1    1,279.1     1,656.0    4,296.0    5,349.0    4,476.0    8,229.3    7,851.2    8,170.6

Net PP&E                                           8,029.8    8,009.6    7,005.2    6,748.2     7,326.0   20,930.0   20,827.0   23,018.0   22,434.5   21,742.9   21,051.9
Net Goodw ill                                      2,218.2    2,230.8    2,251.9    2,208.9     2,195.0    8,219.0    8,128.0    8,134.0    8,132.0    8,132.0    8,132.0
Investments in Affiliates                            108.5        5.5      109.2        8.1         9.1        -          -          -          -          -          -
Deferred Income Taxes                                 26.2       28.2       43.8        -           -          -          -          -          -          -          -
Other Assets                                         370.7      209.6      239.1      212.9       289.9      919.0      867.0      808.0    1,015.0    1,015.0    1,015.0
TOTAL ASSETS                                      12,665.1   11,662.6   10,758.3   10,457.2    11,476.0   34,364.0   35,171.0   36,436.0   39,810.9   38,741.1   38,369.5

CURRENT LIABILITIES:
  Current Debt                                     1,048.1      45.8       19.4      400.0         95.0    6,172.0      664.0    1,868.0    1,635.0    1,635.0    1,635.0
  Accounts Payable                                   134.1     146.1      180.8      254.0        477.0      805.0      914.0      780.0      818.7      937.5    1,061.7
  Accrued Income Taxes                                59.5      57.2       17.1       27.5         98.0       99.0      317.0      240.0      226.0      226.0      226.0
  Deferred Income Taxes                                -         -          -          -            -          -          -          -          -          -          -
  Other Current Liabilities                          262.2     262.0      213.0      242.1        369.0      826.0      806.0      730.0    2,067.7    2,303.3    2,440.1
TOTAL CURRENT LIABILITIES                          1,503.9     511.1      430.3      923.6      1,039.0    7,902.0    2,701.0    3,618.0    4,747.4    5,101.8    5,362.8

LT Debt                                            3,629.9    3,612.3    2,462.1    1,197.1     3,200.0   11,085.0   13,522.0    9,849.0   11,230.6    9,477.6    7,403.4
Deferred Tax Liability                               107.2       42.8      124.1       65.0        54.0      681.0      666.0      726.0      657.3      678.3      699.4
Other Liabilities                                    282.7      303.8      345.2      286.2       343.0    2,125.0    1,755.0    1,684.0    1,739.0    1,694.0    1,652.0
Minority Interest                                      -          -          4.0        3.6         4.0        5.0        3.0        7.0        3.0        3.0        3.0
Shareholders'Equity                                7,141.4    7,192.6    7,392.6    7,981.7     6,836.0   12,566.0   16,524.0   20,552.0   21,433.6   21,786.4   23,248.9
TOTAL LIABILITIES & EQUITY                        12,665.1   11,662.6   10,758.3   10,457.2    11,476.0   34,364.0   35,171.0   36,436.0   39,810.9   38,741.1   38,369.5


Total Capital                                     11,819.4   10,850.7    9,874.1    9,578.8    10,131.0   29,823.0   30,710.0   32,269.0   34,299.2   32,899.0   32,287.3
Total Debt                                         4,678.0    3,658.1    2,481.5    1,597.1     3,295.0   17,257.0   14,186.0   11,717.0   12,865.6   11,112.6    9,038.4
Net Debt                                           3,463.8    3,184.1    2,030.2    1,151.7     2,828.0   16,016.0   12,890.0   10,549.0    7,954.3    6,928.5    4,856.6
Debt / Capital                                       39.6%      33.7%      25.1%      16.7%       32.5%      57.9%      46.2%      36.3%      37.5%      33.8%      28.0%
Net Debt / Capital                                   29.3%      29.3%      20.6%      12.0%       27.9%      53.7%      42.0%      32.7%      23.2%      21.1%      15.0%
Source: Company data, Morgan Stanley Research estimates




                                                                                                                                                                        5
                                                                                                                                 MORGAN                  STANLEY                   RESEARCH

                                                                                                                                 December 16, 2010
                                                                                                                                 Transocean




Exhibit 4
RIG Floater Dayrates (cells highlighted in yellow indicate fixed contracts)
                                Depth (ft.)   Type          Area       Term      1Q09    2Q09    3Q09    4Q09    1Q10    2Q10    3Q10    4Q10    1Q11    2Q11    3Q11    4Q11    1Q12    2Q12    3Q12    4Q12
5th Generation Floaters:
1   Discoverer Deep Seas          10,000      Ship           GoM   Feb-13 o      417.0   499.0   512.0   512.0   512.0   512.0   517.0   517.0   483.5   450.0   450.0   450.0   450.0   450.0   450.0   450.0
2   Discoverer Enterprise         10,000      Ship           GoM    Jul-12 o     520.0   523.0   523.0   523.0   523.0   523.0   523.0   523.0   479.0   435.0   435.0   435.0   435.0   435.0   435.0   505.0
3   Discoverer Spirit             10,000      Ship           GoM   Feb-14 o      500.0   500.0   505.0   505.0   505.0   505.0   507.0   513.5   520.0   520.0   520.0   520.0   520.0   520.0   520.0   520.0
4   Deepw ater Discovery          10,000      Ship         Nigeria Jan-14Af      463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0   463.0
5   Deepw ater Frontier           10,000      Ship           India Jan-14 d      477.0   477.0   477.0   477.0   477.0   477.0   477.0   477.0   477.0   477.0   477.0   475.0   475.0   475.0   475.0   475.0
6   Deepw ater Millennium         10,000      Ship          Brazil Jun-13m       459.0   493.0   493.0   493.0   495.0   531.5   550.0   541.0   541.0   541.0   561.0   561.0   561.0   561.0   561.0   561.0
7   Deepw ater Pathfinder         10,000      Ship           GoM   Apr-15Af      395.0   395.0   565.8   600.0   630.0   616.7   650.0   650.0   650.0   650.0   650.0   650.0   650.0   650.0   650.0   650.0
8   Deepw ater Expedition         10,000      Ship           India Nov-13 d      375.0   375.0   375.0   375.0   375.0   375.0   375.0   640.0   640.0   640.0   640.0   640.0   640.0   640.0   640.0   640.0
9   Deepw ater Horizon            10,000       5G            GoM Total loss o    484.8   506.7   510.2   510.2   511.2
10 Cajun Express                   8,500       5G           Brazil Jun-13 o      478.0   490.0   490.0   490.0   490.0   510.0   534.0   534.0   534.0   534.0   534.0   534.0   534.0   534.0   534.0   534.0
11 Deepw ater Nautilus             8,000       5G            GoM   Mar-12 o      535.0   535.0   538.0   538.0   542.0   542.0   544.0   145.0   145.0   145.0   544.0   544.0   365.0   385.0   405.0   425.0
12 Sedco Energy                    7,500       5G          Nigeria Jan-11Af      476.0   484.0   487.0   487.0   485.0   485.0   485.0   485.0   485.0   485.0   485.0   485.0   365.0   385.0   405.0   425.0
13 Sedco Express                   7,500       5G           Israel Dec-11Af      188.0   188.0   188.0   188.0   188.0   188.0           530.0   530.0   530.0   530.0   530.0   405.0   425.0   445.0   465.0
14 Discoverer Clear Leader        12,000      Ship           GoM    Jul-14 o       -       -     469.0   469.0   469.0   500.0   500.0   500.0   500.0   500.0   500.0   500.0   500.0   500.0   500.0   500.0
15 Discoverer Americas            12,000      Ship          Egypt  Feb-14          -       -       -     475.0   475.0   482.0   486.0   486.0   486.0   486.0   486.0   486.0   486.0   486.0   486.0   486.0
16 Discoverer Inspiration         12,000      Ship           GoM   Feb-15          -       -       -       -       -     472.3   494.0   494.0   494.0   494.0   494.0   494.0   494.0   494.0   494.0   494.0
17 Petrobras 10000                10,000      Ship         Angola  Dec-19Af        -       -       -     459.2   459.2   459.2   459.2   464.8   464.8   464.8   464.8   464.8   464.8   464.8   464.8   464.8
18 Discoverer Luanda              12,000      Ship        Constr.  Nov-17          -       -       -       -       -       -       -     430.0   430.0   430.0   430.0   430.0   430.0   430.0   430.0   430.0
19 Discoverer India               10,000      Ship Constr./India   Oct-15                                                                553.0   553.0   553.0   553.0   553.0   553.0   553.0   553.0   553.0
20 Dhirubhai Deepw ater KG1       12,000      Ship           India  Jul-14 d       -       -     493.0   493.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0
21 Dhirubhai Deepw ater KG2       10,000      Ship           India Feb-15          -       -       -       -     493.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0
22 GSF Development Driller I       7,500       5G            GoM   Oct-12 o      510.0   514.0   514.0   514.0   514.0   514.0   150.0   150.0   150.0   150.0   514.0   514.0   514.0   514.0   514.0   465.0
23 GSF Development Driller II      7,500       5G            GoM   Nov-13 o      580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0   580.0
24 Development Driller III         7,500       5G            GoM   Nov-16 o        -       -       -     403.0   403.0   403.0   403.0   403.0   403.0   403.0   403.0   403.0   403.0   403.0   403.0   403.0
25 GSF C.R. Luigs                  9,000      Ship           GoM   Nov-13 o      393.0   393.0   411.0   510.0   510.0   522.0   150.0   150.0   150.0   150.0   519.0   519.0   519.0   519.0   519.0   519.0
26 GSF Explorer                    7,800      Ship         Angola  Apr-12Af      427.0   450.0   426.0   426.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0   510.0
27 GSF Jack Ryan                   8,000      Ship         Nigeria  Jul-13Af     297.0   297.0   425.0   425.0   425.0   425.0   425.0   425.0   425.0   425.0   425.0   425.0   425.0   425.0   425.0   425.0
28 Deepw ater Champion            12,000      Ship Constr./Turkey  Nov-15                                                                        703.0   703.0   703.0   703.0   703.0   647.0   647.0   647.0


Other Deepw ater Floaters:
1   Deepw ater Navigator            7,200     Ship         Brazil    Feb-17m     182.0   183.0   188.0   188.0   190.0   190.0   190.0   374.0   374.0   374.0   374.0   374.0   374.0   374.0   374.0   374.0
2   Discoverer 534                  7,000     Ship          India    Aug-10 d    250.0   250.0   250.0   250.0   250.0   250.0   250.0   250.0   250.0   250.0   250.0   250.0   250.0   250.0   275.0   300.0
3   Discoverer Seven Seas           7,000     Ship          India    Jun-11 d    316.0   316.0   316.0   316.0   316.0   316.0   316.0   316.0   316.0   316.0   250.0   250.0   250.0   250.0   275.0   300.0
4   Transocean Marianas             7,000      4G        Nigeria     Dec-12ge    446.0   446.0   446.0   446.0   565.0   565.0   450.0   450.0   450.0   450.0   450.0   450.0   450.0   450.0   450.0   450.0
5   Sedco 706                       6,500      4G         Brazil     Apr-14        -     300.0   311.0   311.0   311.0   311.0   311.0   311.0   311.0   311.0   311.0   311.0   311.0   311.0   311.0   311.0
6   Sedco 702                       6,500      4G        Nigeria     Mar-11Af    346.0   350.0   350.0   350.0   353.0   353.0   353.0   353.0   353.0   265.0   265.0   265.0   265.0   265.0   290.0   315.0
7   Sedco 707                       6,500      4G         Brazil     Mar-15m     183.0   182.0   188.0   393.0   393.0   393.0   393.0   393.0   393.0   393.0   393.0   393.0   393.0   393.0   393.0   393.0
8   Jack Bates                      5,400      4G           Aust     Apr-11s/    530.0   376.0   376.0   376.0   375.0   375.0   375.0   420.0   420.0   300.0   300.0   300.0   300.0   300.0   325.0   350.0
9   Peregrine I                     5,280     Ship           Sold                                                                                                                  -       -       -       -
10 Sedco 709                        5,000      4G        Nigeria     Jan-10Af    205.0   205.0   205.0   205.0                                                                   255.0   255.0   280.0   305.0
11 M.G. Hulme, Jr.                  5,000      3G       Malaysia     Nov-09Af    430.0   430.0   430.0   430.0                                                                   255.0   255.0   280.0   305.0
12 Transocean Richardson            5,000      4G        Angola      Mar-11Af    456.0   456.0   456.0   456.0   456.0   456.0   340.0   340.0   340.0   340.0   255.0   255.0   255.0   255.0   280.0   305.0
13 Jim Cunningham                   4,600      3G        Angola      Apr-10Af    350.0   450.0   450.0   450.0   450.0   450.0
14 Sedco 710                        4,500      3G          Brazil    Jan-17m     121.0   121.0   126.0   126.0   126.0   126.0   128.0   327.8   327.8   327.8   327.8   327.8   327.8   327.8   327.8   327.8
15 Transocean Rather                4,500      4G        N. Sea       Jul-12 S   417.0   415.0   468.0   467.0           256.0   256.0   428.0   370.7   437.0   437.0   437.0   437.0   437.0   270.0   295.0
16 Sovereign Explorer               4,500      3G         Brazil     Dec-10m     389.0   389.0   391.0   391.0   394.0   250.0   250.0   250.0   210.0   210.0   210.0   210.0   210.0   210.0   235.0   260.0
17 GSF Celtic Sea                   5,750      4G         Brazil     Mar-14 a    475.0   475.0   486.0   486.0   486.0   486.0   486.0   486.0   486.0   320.0   320.0   320.0   320.0   324.0   324.0   324.0
                                                                                                                                                                                   -       -       -       -
Harsh Environm ent:                                                                                                                                                                -       -       -       -
1   Henry Goodrich                  5,000      4G       Canada       Jan-14na    358.0   384.0   381.0   381.0   381.0   381.0   381.0   335.0   335.0   335.0   335.0   335.0   335.0   335.0   335.0   335.0
2   Transocean Leader               4,500      4G       Norw ay      Feb-12 S    373.0   373.0   427.0   452.0   459.0   456.0   456.0   453.0   453.0   453.0   453.0   453.0   453.0   320.0   345.0   370.0
3   Paul B. Loyd, Jr.               2,000      4G        N. Sea      Mar-12 S    312.0   478.0   480.0   480.0   487.0   485.0   490.0   496.0   496.0   496.0   496.0   496.0   496.0   400.0   405.0   410.0
4   Transocean Arctic               1,650      4G       Norw ay      Dec-11 S    265.0   263.0   282.0   282.0   289.0   286.0   286.0   278.0   278.0   278.0   278.0   278.0   278.0   430.0   435.0   440.0
5   Polar Pioneer                   1,500      4G       Norw ay      Jan-14 S    281.0           295.0   295.0   404.5   500.0   500.0   492.0   492.0   492.0   492.0   492.0   492.0   492.0   492.0   492.0

Other Floaters:
1   Peregrine III                   4,200     Ship           Sold                -         -       -       -       -       -       -       -       -       -       -       -       -       -       -       -
2   Sedco 700                       3,600      3G      E. Guinea     Aug-09Af 410.0      410.0   410.0
3   Transocean Legend               3,500      3G       Australia    Sep-11s/ 415.0      438.3   450.0   300.0   300.0   298.0   298.0   315.0   315.0   315.0   315.0   225.0   225.0   225.0   250.0   275.0
4   Transocean Amirante             3,500      3G           GoM      Mar-11 o 356.0      361.0   361.0   361.0   361.0   361.0   363.0   363.0   363.0   195.0   195.0   195.0   195.0   195.0   220.0   245.0
5   C. Kirk Rhein, Jr.              3,300      3G       Malaysia     Jan-09 A 362.0                                                              195.0   195.0   195.0   195.0   195.0   195.0   220.0   245.0
6   Transocean Driller              3,000      3G          Brazil     Jul-16m 112.0      112.0   113.0   113.0   115.0   115.0   302.5   304.8   304.8   304.8   304.8   304.8   304.8   304.8   304.8   304.8
7   Falcon 100                      2,400      2G          Brazil    Mar-13m 216.0       219.0   239.0   239.0   244.0   240.0   244.0   252.0   252.0   252.0   252.0   252.0   252.0   252.0   252.0   252.0
8   Sedco 703                       2,000      2G       Malaysia      Jul-09 A 450.0     450.0
9   Sedco 711                       1,800      3G         N. Sea     Oct-11m 385.0       379.0   384.0   384.0   387.0   384.0   384.0   400.0   416.0   416.0   416.0   290.0   290.0   290.0   290.0   330.0
10 Transocean John Shaw             1,800      3G         N. Sea     Oct-10m 350.0       348.0   352.0   267.5   250.0   251.0   251.0   252.0   260.0   270.0   280.0   290.0   300.0   310.0   320.0   330.0
11 Sedco 712                        1,600      3G         N. Sea     Jan-09merica                                                                260.0   270.0   280.0   290.0   300.0   310.0   320.0   330.0
12 Sedco 714                        1,600      3G         N. Sea     Jun-11m 232.0       281.0   313.5   391.0   391.0   391.0   391.0   391.0   251.0   251.0   280.0   290.0   300.0   310.0   320.0   330.0
13 Actinia                          1,500      3G           India    Oct-10m 190.0       190.0           206.0   206.0   198.0   190.0   120.0   100.0   100.0   100.0   100.0   100.0   100.0   125.0   150.0
14 Sedco 601                        1,500      3G       Malaysia     Jan-11 A 255.0      255.0   255.0   255.0   255.0   255.0   256.0   256.0   256.0   115.0   115.0   115.0   115.0   115.0   140.0   165.0
15 Sedneth 701                      1,500      2G         Angola     Jun-10Af 364.0      364.0   366.0   366.0   366.0   265.0
17 Transocean Winner                1,500      3G       Norw ay      Oct-12 S 364.0      364.0   375.0   446.0   390.0   465.0   465.0   464.0   464.0   464.0   464.0   464.0   464.0   464.0   464.0   464.0
18 Transocean Searcher              1,500      3G       Norw ay      Sep-12 S 395.0      400.0   415.0   415.0   419.0   419.0   419.0   411.0   411.0   411.0   411.0   411.0   411.0   411.0   411.0   410.0
19 Transocean Prospect              1,500      3G         N. Sea     Oct-10 S 365.0      363.0   367.0   367.0   378.0   378.0   383.0   130.4   260.0   270.0   280.0   290.0   300.0   310.0   320.0   330.0
20 Transocean Wildcat               1,300      2G           Sold                 -         -       -       -       -       -       -       -       -       -       -       -       -       -       -       -
21 Transocean Explorer              1,250      2G           Sold                 -         -       -       -       -       -       -       -       -       -       -       -       -       -       -       -
22 J.W. McLean                      1,250      2G         N. Sea     Jan-11 S 390.0      406.0   422.0   422.0   336.0           260.0   260.0   260.0   260.0   260.0   260.0   300.0   310.0   320.0   330.0
23 Sedco 704                        1,000      2G         N. Sea     Dec-10 S 371.0      371.0   371.0   427.0   425.0   425.0   416.0   416.0   260.0   270.0   280.0   290.0   290.0   290.0   290.0   290.0
25 GSF Aleutian Key                 2,300      3G         Angola     Jan-10Af 357.0      357.0   403.0   357.0   357.0
26 GSF Arctic I                     3,400      3G          Brazil    Jun-11m 264.0       280.0   281.0   281.0   291.0   291.0   291.0   250.0   250.0   180.0   180.0   180.0   180.0   180.0   205.0   230.0
27 GSF Arctic III                   1,800      3G            Italy   Jun-11al 453.0      453.0   453.0                   247.0   247.0   248.0   248.0   248.0   175.0   175.0   175.0   175.0   200.0   225.0
28 GSF Arctic IV                    1,800      3G         N. Sea     Oct-10 S 275.0      275.0   275.0   275.0   275.0   278.0   278.0                                             -       -       -       -
29 GSF Grand Banks                  1,500      3G        Canada      Jan-13na 353.0      354.0   356.0   356.0   353.0   353.0   353.0   353.0   295.0   295.0   295.0   295.0   295.0   295.0   295.0   295.0
30 GSF Arctic II                    1,200      3G         N. Sea        Sold Sea
31 GSF Rig 135                      2,400      3G         Congo      Oct-10Af 325.0      325.0   325.0   325.0   380.0   250.0   240.0   190.0   190.0   190.0   190.0   190.0   190.0   190.0   215.0   240.0
32 GSF Rig 140                      2,400      3G         Angola     May-11Af 311.0      311.0           435.0   435.0   435.0   435.0   435.0   435.0   435.0   190.0   190.0   190.0   190.0   215.0   240.0

Source: Company data, Morgan Stanley Research; note: yellow indicates fixed contracts, pink indicates force majeure declared or potential for force majeure, and blue are options




                                                                                                                                                                                                                 6
                                                                                                             MORGAN             STANLEY               RESEARCH

                                                                                                             December 16, 2010
                                                                                                             Transocean




Exhibit 5
RIG Jackup Dayrates (cells highlighted in yellow indicate fixed contracts)
                              Depth (ft.)   Type        Area        Term     1Q09    2Q09    3Q09    4Q09      1Q10   2Q10    3Q10    4Q10    1Q11    2Q11    3Q11    4Q11     1Q12    2Q12    3Q12    4Q12
High Specification Jackups:                                                                                                                                                     -       -       -       -
1   GSF Constellation I             400       IC     Trinidad     Sep-12nid 219.0    220.0   220.0   110.0    110.0   110.0   105.0   100.0   100.0   100.0   100.0   100.0   100.0   150.0   150.0   150.0
2   GSF Constellation II            400       IC        Egypt     Mar-11 194.0
                                                                        Me           194.0   194.0   194.0    151.5   109.0   109.0   109.0   109.0   130.0   130.0   130.0   130.0   150.0   150.0   150.0
3   GSF Galaxy I                    400       IC      N. Sea      Oct-09 S 115.0     227.0   227.0                                            130.0   130.0   130.0   130.0   140.0   140.0   140.0   140.0
4   GSF Galaxy II                   400       IC      N. Sea      Oct-10 S 204.0     204.0                            150.0   135.0   135.0   135.0   135.0   140.0   140.0   140.0   140.0   145.0   145.0
5   GSF Galaxy III                  400       IC      N. Sea      Oct-11 S 106.0     105.0   109.0   109.0    106.0   106.0   107.0   107.0   107.0   107.0   107.0   140.0   140.0   140.0   140.0   145.0
6   GSF Baltic                      375       IC      Nigeria     Jun-12Af 205.0     226.5   248.0   240.0    170.0   100.0   100.0   100.0   100.0   100.0   110.0   110.0   110.0   110.0   130.0   130.0
7   GSF Magellan                    350       IC      N. Sea       Jul-09 S 145.0    145.0                                                    115.0   115.0   115.0   115.0   120.0   120.0   120.0   120.0
8   GSF Monarch                     350       IC      N. Sea       Jul-10 S 78.0      78.0    78.0   212.0    199.0   199.0   110.0   110.0   110.0   110.0   115.0   115.0   115.0   115.0   115.0   115.0
9   GSF Monitor                     350       IC     Trinidad      Jul-09nid 151.0   152.0                                                    100.0   100.0   100.0   100.0   115.0   115.0   115.0   115.0
10 Trident 20                       350       IC     Caspian      Dec-12sp 130.0     130.0   130.0   130.0    185.0   185.0   185.0   185.0   185.0   185.0   185.0   185.0   185.0   185.0   185.0   185.0

Standard Jackups:
11 Trident IX                       400       IC    Vietnam       Oct-10 A 200.0     200.0   200.0                    115.0   115.0   110.0   110.0   110.0   110.0   120.0   120.0   120.0   120.0   125.0
12 Trident XVII                     355       IC    Malaysia      Nov-09 A 185.0     185.0   185.0   185.0                                    100.0   100.0   100.0   100.0   115.0   115.0   115.0   115.0
13 GSF Adriatic II                  350       IC     Gabon        May-09Af 192.0     193.0                                                    105.0   105.0   105.0   105.0   120.0   120.0   120.0   120.0
14 GSF Adriatic III                 350       IC                    Sold                                                                                                        -       -       -       -
15 GSF Adriatic IX                  350       IC       Nigeria     Jul-11Af 188.0    188.0    97.0    97.0     92.0    95.0    90.0    92.0    92.0    92.0   110.0   110.0   120.0   120.0   120.0   120.0
16 GSF Adriatic X                   350       IC        Egypt     Oct-10 e 182.0     182.0   182.0   182.0    182.0   182.0   182.0   182.0    90.0    90.0    90.0    90.0    95.0    95.0    95.0    95.0
17 GSF Key Manhattan                350       IC        Egypt     Apr-13 e 172.0     172.0                    137.0   137.0   137.0   137.0   137.0   137.0   137.0   137.0   137.0   137.0   137.0   137.0
18 GSF Key Singapore                350       IC        Egypt     Oct-10 e 172.0                               98.0    98.0    98.0
19 GSF Adriatic VI                  328       IC       Gabon      Apr-09Af 217.0     225.0                                                    105.0   105.0   105.0   105.0   120.0   120.0   120.0   120.0
20 GSF Adriatic VIII                328       IC       Nigeria     Jul-10Af 188.0    230.0   230.0   230.0    230.0   100.0
21 C.E. Thornton                    300       IC         India    Oct-11 d 122.0     120.0   122.0   122.0    130.0   130.0   133.0   126.0   126.0   126.0   126.0    80.0    80.0    80.0    80.0    80.0
22 D.R. Stew art                    300       IC          Italy    Jul-10al 168.0    168.0   168.0   168.0    168.0   168.0    70.0    70.0    70.0    70.0    80.0    80.0    80.0    80.0    80.0    80.0
23 F.G. McClintock                  300       IC         India    Sep-11 d 145.0     145.0   145.0   145.0    145.0   145.0   145.0   145.0   145.0   145.0   145.0    80.0    80.0    80.0    80.0    80.0
24 George H. Gallow ay              300       IC      Croatia     Aug-09oa 170.0     170.0   170.0                                            170.0   170.0   170.0   170.0    80.0    80.0    80.0    80.0
25 GSF Adriatic I                   300       IC       Gabon      Mar-09Af 192.0                                                               90.0    90.0    90.0    90.0   105.0   105.0   105.0   105.0
26 GSF Adriatic V                   300       IC       Gabon      Mar-09Af 193.0                                                                                              105.0   105.0   105.0   105.0
27 GSF Adriatic XI                  300       IC    Malaysia      Sep-09 A 196.0     196.0   175.7                                                                            105.0   105.0   105.0   105.0
28 GSF Compact Driller              300       IC     Thailand     Apr-12 A 196.0     120.0   120.0   120.0    104.0   104.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   105.0   105.0   105.0
29 GSF Galveston Key                300       IC     Vietnam      Mar-11 A 192.0     197.0   197.0   202.0    202.0   100.0   100.0   100.0   100.0    95.0    95.0    95.0    95.0   105.0   105.0   105.0
30 GSF Key Gibraltar                300       IC    Malaysia      Mar-14 Asia                                                         105.0   105.0   105.0   105.0   105.0   105.0   105.0   105.0   105.0
31 GSF Key Haw aii                  300       IC      Bahrain     Apr-11 175.0
                                                                        M.E          175.0                             70.0    70.0    70.0    70.0    75.0    75.0    75.0    75.0    80.0    80.0    80.0
32 GSF Labrador                     300       IC       N. Sea      Jul-10 S 183.0    183.0   205.0   205.0    145.0    92.0
33 GSF Main Pass I                  300       IC        Saudi     Jun-11 180.0
                                                                        M.E          180.0   180.0   180.0    180.0   180.0   180.0   164.0   164.0   164.0    80.0    80.0    80.0    80.0    80.0    80.0
34 GSF Main Pass IV                 300       IC        Saudi      Jul-11 180.0
                                                                        M.E          180.0   180.0   180.0    180.0   180.0   180.0   164.0   164.0   164.0    80.0    80.0    80.0    80.0    80.0    80.0
35 GSF Paramesw ara                 300       IC   Indonesia      Dec-12 A 106.0     168.0   168.0   168.0    122.0   122.0   122.0   122.0   122.0   122.0   122.0   122.0   122.0   122.0   122.0   122.0
36 GSF Rig 134                      300       IC    Malaysia      Mar-10 A 166.0     166.0   166.0   166.0    166.0
37 GSF Rig 136                      300       IC    Malaysia      Sep-09 A 175.0     175.0   120.0
38 Harvey H. Ward                   300       IC    Malaysia      Aug-10 A 150.0     150.0   150.0   150.0    150.0   150.0    90.0     -       -       -      95.0    95.0    95.0    95.0   105.0   105.0
39 Interocean III                   300       IC        Egypt     Mar-09 e 122.0
40 J.T. Angel                       300       IC         India    May-13 d 148.0     148.0   148.0   148.0    148.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0
41 Randolph Yost                    300       IC         India    Apr-10 d 148.0     148.0   148.0   148.0     77.0    77.0
42 Roger W. Mow ell                 300       IC    Malaysia      Aug-10 A 110.0     150.0   150.0   150.0    150.0   150.0
43 Ron Tappmeyer                    300       IC         India    Jun-13 d 148.0     148.0   148.0   148.0     77.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0
44 Shelf Explorer                   300       IC     Vietnam      Nov-09 A 150.0     210.0   210.0   210.0                                                                    105.0   105.0   105.0   105.0
45 Transocean Nordic                300       IC    Malaysia
46 Trident XV                       300       IC     Thailand     Feb-12 A 100.0     100.0   100.0   100.0    100.0   100.0   100.0   100.0   100.0    80.0    80.0    80.0    80.0   105.0   105.0   105.0
47 Trident XVI                      300       IC     Vietnam       Jul-11 A 189.0    189.0   189.0   189.0    180.0   180.0   180.0   180.0   180.0   180.0   180.0   100.0   100.0   100.0   100.0   105.0
48 Trident II                       300       IC         India    Mar-15 d 148.0     148.0   148.0   148.0    140.0    78.0    78.0    78.0    78.0    78.0    78.0    78.0    78.0    78.0    78.0    78.0
49 Trident IV                       300       IC       Gabon      Mar-09Af 170.0
50 Trident VIII                     300       IC       Gabon      Sep-11Af 244.0                                       83.0    83.0    83.0    85.0    85.0    85.0   100.0   100.0   100.0   100.0   120.0
51 Trident XII                      300       IC         India    May-13 d 148.0     148.0   148.0   148.0    148.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0    65.0
52 Trident XIV                      300       IC      Angola      May-11Af 98.0       98.0   147.0   147.0    149.0   149.0   149.0   151.0   154.0   154.0    95.0    95.0    95.0    95.0   115.0   115.0
53 GSF High Island II               270       IC        Saudi      Jul-11 180.0
                                                                        M.E          180.0   180.0   180.0    180.0   180.0   164.0   164.0   164.0   164.0    65.0    65.0    65.0    65.0    65.0    65.0
54 GSF High Island IV               270       IC        Saudi     Apr-11 180.0
                                                                        M.E          180.0   180.0   180.0    180.0   180.0   164.0   164.0   164.0    60.0    60.0    60.0    60.0    65.0    65.0    65.0
55 GSF High Island V                270       IC       Congo      May-09Af 175.0     115.0                                                     80.0    80.0    80.0    80.0    80.0    80.0    80.0    80.0
56 GSF High Island I                250       IC          Sold
57 GSF High Island IX               250       IC       Ghana       Jul-09Af 150.0    150.0                                                     80.0    80.0    80.0    80.0    80.0    80.0    80.0    80.0
58 GSF High Island VII              250       IC   Cameroon       Dec-10Af 170.0     170.0   170.0   170.0    170.0    84.0    84.0    88.0    80.0    80.0    80.0    80.0    80.0    80.0    80.0    80.0
59 GSF High Island VIII             250       IC          Sold
60 GSF Rig 103                      250       IC        Egypt     Feb-11 116.0
                                                                       Me            116.0                                                                                     65.0    65.0    65.0    65.0
61 GSF Rig 105                      250       IC        Egypt     Feb-11 112.0
                                                                       Me            112.0   112.0   112.0    112.0   112.0   112.0   112.0   112.0    60.0    60.0    60.0    60.0    65.0    65.0    65.0
62 GSF Rig 124                      250       IC        Egypt     Apr-10 120.0
                                                                       Me            120.0   120.0   120.0     60.0
63 GSF Rig 127                      250       IC        Qatar     May-09 145.0
                                                                       M.E           145.0
64 GSF Rig 141                      250       IC        Egypt     Jan-11 120.0
                                                                       Me            120.0   120.0   120.0     58.0    58.0    60.0    60.0    60.0    60.0    65.0    65.0    65.0    65.0    65.0    65.0
65 Transocean Comet                 250       IC        Egypt     Sep-11 112.0
                                                                       Me            112.0   112.0    50.0     50.0    50.0    50.0    50.0    50.0    50.0    50.0    65.0    65.0    65.0    65.0    65.0
66 Transocean Mercury               250       IC        Egypt     Jan-10 110.0
                                                                       Me            110.0   110.0   110.0                                                                     65.0    65.0    65.0    65.0
67 Trident VI                       220       IC     Vietnam      Oct-09 A 193.0     137.0   137.0                                                                             80.0    80.0    80.0    80.0

Source: Company data, Morgan Stanley Research; note: yellow indicates fixed contracts and blue are options




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                                                                                 Transocean




weightings (see definitions below). To satisfy regulatory requirements, we correspond Overweight, our most positive stock rating, with a buy
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                         Coverage Universe    Investment Banking Clients (IBC)
                                        % of                   % of % of Rating
Stock Rating Category       Count       Total     Count Total IBC Category
Overweight/Buy               1121        40%          417        44%         37%
Equal-weight/Hold            1175        42%          410        43%         35%
Not-Rated/Hold                119         4%           26         3%         22%
Underweight/Sell              392        14%          105        11%         27%
Total                       2,807                     958
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Stock Price, Price Target and Rating History (See Rating Definitions)




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                                                                                              MORGAN            STANLEY           RESEARCH

                                                                                              December 16, 2010
                                                                                              Transocean




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                                                                                                                                                                             11
                                                                                       MORGAN    STANLEY            RESEARCH




The Americas                                   Europe                                    Japan                           Asia/Pacific
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New York, NY 10036-8293                        London E14 4AD                            Tokyo 150-6008                  Kowloon
United States                                  United Kingdom                            Japan                           Hong Kong
Tel: +1 (1) 212 761 4000                       Tel: +44 (0) 20 7 425 8000                Tel: +81 (0) 3 5424 5000        Tel: +852 2848 5200




Industry Coverage:Oil Services, Drilling &
Equipment

Company (Ticker)                              Rating (as of) Price* (12/15/2010)


Ole Slorer
Atwood Oceanics Inc (ATW.N)                  U (02/19/2010)                  $36.78
Baker Hughes (BHI.N)                         O (09/17/2009)                  $54.79
Calfrac Well Services (CFW.TO)               U (02/17/2010)                 C$33.46
Cameron International (CAM.N)                O (05/08/2009)                  $49.24
Carbo Ceramics (CRR.N)                       U (09/14/2009)                 $101.47
Chart Industries (GTLS.O)                    O (11/17/2010)                  $32.13
Diamond Offshore (DO.N)                      U (03/20/2009)                  $63.39
Dresser-Rand (DRC.N)                         O (11/17/2010)                  $40.25
Dril Quip Inc. (DRQ.N)                       E (05/11/2009)                  $77.92
ENSCO (ESV.N)                                U (07/28/2010)                   $51.2
FMC Technologies (FTI.N)                     E (02/09/2009)                  $85.64
Halliburton Co. (HAL.N)                      E (10/18/2010)                  $39.79
Helix Energy Solutions (HLX.N)               E (04/16/2009)                  $12.88
Helmerich & Payne Inc (HP.N)                 U (10/14/2009)                  $47.95
Hercules Offshore (HERO.O)                  NR (02/19/2010)                   $2.86
ION Geophysical (IO.N)                       O (04/16/2010)                   $7.88
McDermott International Inc.                 O (09/16/2010)                  $19.53
(MDR.N)
Nabors Industries Inc. (NBR.N)               O (09/25/2008)                   $22.31
National Oilwell Varco (NOV.N)               E (11/18/2010)                   $62.22
Noble Corporation (NE.N)                     U (07/28/2010)                    $35.2
Oceaneering International Inc                U (06/01/2010)                   $73.04
(OII.N)
Patterson-UTI Energy (PTEN.O)                U (11/17/2010)                  $21.17
Pride International Inc. (PDE.N)             U (07/28/2010)                  $31.67
RPC (RES.N)                                  U (08/19/2010)                   $18.5
Rowan Companies (RDC.N)                      O (07/28/2010)                  $33.52
Schlumberger (SLB.N)                         O (04/21/2008)                  $80.72
Seadrill (SDRL.N)                            O (04/14/2010)                   $33.3
Tenaris S.A (TS.N)                           O (11/03/2009)                  $46.19
Transocean (RIG.N)                           E (12/16/2010)                  $71.89
Trican Well Service (TCW.TO)                 U (02/17/2010)                 C$20.15
Weatherford International (WFT.N)            O (09/22/2003)                  $20.55

Stock Ratings are subject to change. Please see latest research for each company.
* Historical prices are not split adjusted.




© 2010 Morgan Stanley

				
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