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

Diamond Offshore Drilling, Inc.

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

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.