Transocean Issues Update on Cost-Reduction Initiative

Concurrent with Transocean Ltd's. (NYSE: RIG) (SIX: RIGN)divestiture of 38 low-specification rigs in the fourth quarter of 2012, thecompany commenced an organizational efficiency initiative. This initiative isintended to align the company's shore-based support infrastructure with thepost-divestiture size, composition and geographic location of its fleet andrepresents an initial phase in the company's ongoing plan to improve operatingmargins. This restructuring is expected to result in a more efficient andfocused organization that delivers the highest level of support to thecompany's rig operations without compromising safety or operational integrity.Based on preliminary analysis, the company currently anticipates achievingannualized savings associated with this initial phase of our cost reductioninitiative of approximately $300 million.   Onshore support costs are reportedprincipally in operating and maintenance expense and, to a lesser extent, asgeneral and administrative expense on the company's statement of operations.The expected reduction in onshore costs includes, among other items, theconsolidation of facilities, the streamlining of business functions andprocesses, as well as elimination of processes, programs and tasks that arenot central to supporting the company's core business of operating our rigssafely, efficiently and in a manner that exceeds our customers' expectations. As part of this cost reduction initiative, the company anticipates thatcertain shore-based positions will be eliminated, a process that has commencedand will continue over the next several months.Transocean (NYSE: RIG) does not anticipate realization of a material benefit from theorganizational efficiency initiative in 2013 as any reduction in overheadcosts are expected to be offset by restructuring costs and expenses. Thecompany expects to begin to realize the cost savings associated with thisshore-based initiative in early 2014.With the objective of achieving additional efficiencies beyond thoseassociated with the company's shore-based support infrastructure, Transoceancontinues to review its entire cost structure, including its offshore andproject operations, with the target of further improving its operating marginsto be more aligned with its peers, after adjusting for fleet composition andgeography, among other items.  Both the onshore organizational efficiencyinitiative and the offshore operations initiative are expected to improveTransocean's competitiveness.The company will provide additional periodic updates on its cost reductionplans and progress as they are implemented and will address theprogress-to-date more specifically when the company discusses its firstquarter 2013 results on May 9, 2013.