Transocean Reports Deal on Patent Lawsuit Transocean Inc. reached an agreement in its dispute with contract driller GlobalSantaFe over patent infringement of Transocean's offshore dual activity drilling technology. The agreement follows an amended final judgment entered last month by a federal district court against GlobalSantaFe. The judgment awarded damages to Transocean and permanently enjoined GlobalSantaFe from further infringement of the Transocean dual activity patents. The agreement reached with GlobalSantaFe will permit GlobalSantaFe to use Transocean's dual activity drilling technology on its Development Driller I and II rigs currently working in the Gulf of Mexico and on its Development Driller III rig after delivery from the shipyard in Singapore. In exchange for this right, GlobalSantaFe has agreed to discontinue any further proceedings challenging Transocean's dual activity patents and has agreed to pay a $4 million fee for each of the Development Drillers I, II and III and approximately $3 million in aggregate for use to date by its two operating rigs as a royalty, for a combined payment of approximately $15 million. Global- SantaFe has further agreed to pay 3% of future revenues received on the three Development Driller rigs, and 5% of revenues on any other rigs which GlobalSantaFe may acquire which incorporate the dual activity technology, as a license fee going forward when operating in an area where Transocean has dual activity patent rights. Transocean has not given any rights to build any additional rigs incorporating the dual activity technology and any such construction would be subject to further negotiation or litigation. Transocean has reached this agreement to permit GlobalSantaFe to utilize its technology for its customers and welcomes the opportunity to discuss licensing arrangements with other drilling contractors for its dual activity technology. Transocean developed its dual activity drilling design in 1996 as part of a project to more efficiently construct wells in deepwater through the use of two complete drilling systems, allowing for parallel drilling operations to be conducted on a single well that saves operators both time and money, compared with conventional rigs. Finalists Named for SAFE Awards Offshore energy companies have been named national finalists for the Department of the Interior's 2006 Safety Awards for Excellence (SAFE) competition. Sponsored by the MMS, the SAFE awards are presented annually to Outer Continental Shelf (OCS) oil and gas operators and contractors who achieve excellence in safety and pollution prevention. The SAFE Award is presented annually to offshore drilling and production contractors as well as to OCS oil and gas operators in two separate categories - "moderate activity" and "high activity." A "moderate activity" company annually produces at least one million barrels of oil equivalent and operates a minimum of 100 production system components. A "high activity" company annually produces at least 10 million barrels of oil equivalent and operates a minimum of 1,000 production system components. One award is presented in each category. The 2006 SAFE categories and finalists are: · · · · · · · · · · · · · · · Anadarko Petroleum Corp. ConocoPhillips Co. Shell Exploration and Production Co. Energy XXI GOM, LLC W&T Offshore, Inc. Eni Petroleum Co. Inc. Murphy Exploration & Production Co. Noble Energy, Inc. GlobalSantaFe Drilling Co. Baker Energy Noble Corp. C&D Production Specialists Transocean Danos & Curole Marine Contractors Island Operating Company, Inc. SAFE winners will be announced April 17, 2007 at the MMS Industry Awards Luncheon. 36 · MarineNews · April, 2007
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