Good day and welcome everyone to the second quarter 2009 results conference call for Transocean. At this time for opening remarks and introductions, I would like to turn the program over to Mr. Greg Panagos, Vice President of Investor Relations and Communications. Please go ahead, sir.

': The quarterly toolkit also has six additional financial tables for your convenience covering revenue efficiency, deferred costs, deferred revenue, other revenue, operating and maintenance costs by rig type and contract intangible revenue. ': The quarterly toolkit also has six additional financial tables for your convenience covering revenue efficiency, deferred costs, deferred revenue, other revenue, operating and maintenance costs by rig type and contract intangible revenue. ': The quarterly toolkit also has six additional financial tables for your convenience covering revenue efficiency, deferred costs, deferred revenue, other revenue, operating and maintenance costs by rig type and contract intangible revenue. ': The quarterly toolkit also has six additional financial tables for your convenience covering revenue efficiency, deferred costs, deferred revenue, other revenue, operating and maintenance costs by rig type and contract intangible revenue. ': Before I turn the call over to Bob, I would like to point out that, during the course of this conference call, participants may make certain forward-looking statements regarding various matters related to our business and company that are not historical facts, including future financial performance, operating results and the prospects for the contract drilling business. ': Should one or more of these risks and uncertainties materialize or underlying assumptions prove incorrect, actual results may vary materially from those indicated. Also, please note that we may use various numerical measures on the call today that are or may be considered non-GAAP financial measures under Regulation G. As I indicated earlier, you will find the required supplemental financial disclosures for these measures, including the most directly comparable GAAP measure and associated reconciliation on our website at www.deepwater.com under Investor Relations, Quarterly Toolkit and Non-GAAP Financial Measures and Reconciliations. Finally, in order to give more people an opportunity to ask questions, please limit your questions to one initial question and one follow-up. Thank you. That concludes the preliminary details. Now I will turn the call over to Bob.

Thanks, Greg. Good morning, everyone and thank you for joining us on the call. As you saw from our press release, we reported earnings of $2.79 per share after adjusting for asset impairments, discrete tax items and several other items, which Greg Cauthen will cover in his report. We continue to experience difficult market conditions, particularly in the jackup business where demand has declined and supply just keeps increasing. We currently have 18 jackups idle or stacked, plus one that is just about to come off contract and will stack making it 19. That is up from nine at our last call and three at our year-end call. As I think I mentioned last time, we expect to see more stacked before the year is out resulting in as many as 25 or 26 jackups stacked by year-end and maybe a bit more. As rigs roll off contract without follow-on prospects, we are approached continuously to cold stack them as efficiently as possible to get costs down quickly. In the midwater market and conventional deepwater markets, we have seen a slowdown in bid activity. We had four midwater floaters stacked at the end of the quarter and a fifth has just come down as moving to a stacking location. We have another three midwater rigs coming available shortly and could see some of those stack also. I will let Terry Bonno give you some thoughts on the prospects for these rigs and on the two deepwater rigs we have coming available in 2009; Sedco 709 and the Rather. We have concluded a sales agreement with the purchase of the Arctic II and IV. Those are the two midwater rigs in the North Sea, which we are required to divest as part of the merger. The sale is subject to the OFT approval and once we have this; we hope to close the transaction in the third quarter. The good news is the continuing strength of the ultra-deepwater market. We remain very optimistic about both the near-term and long-term outlook for this market. You saw our announcement of the contract with Petrobras for the Cajun Express, an 8500 foot capable rig, at over $500,000 per day starting early next year for three years. We have eight other ultra-deepwater rigs coming available between now and the first quarter of 2012 and we are already in discussions with customers on opportunities for most of these rigs. Our deepwater newbuild program continues to go extremely well. We have taken delivery of the KG1, a clear leader, and the Petrobras 10000, all of which are now earning day rate. We have also taken delivery of the Development Driller III, which is in route to the Gulf of Mexico from Singapore and the Discoverer Americas in Korea. All of our projects are close to on time and all are on or under budget. At this point, I will turn it over to Greg for some detail on the numbers.

Thanks, Bob and good morning to everyone. In the second quarter of 2009, we had net income of $806 million, or $2.49 per diluted share. This compares to net income of $942 million, or $2.93 per diluted share in the first quarter of 2009. Second quarter net income was adversely impacted on a net basis by certain items totaling $96 million, or $0.30 per share. After adjusting for these items, second quarter net income was $902 million or $2.79 per share as compared to the first quarter net income adjusted for similar items of $1,206 million or $3.75 per share. Our second quarter adjusted earnings per share of $2.79 was below the street due to a variety of revenue and cost factors. During the quarter, we had an unusual number of major operational incidents, mostly with respect to deepwater rigs, which resulted in a $30 million increase in lost revenue. We also made a decision during the quarter to swap the Legend for the Sedco 703, which resulted in another $22 million of lost revenue in the quarter, but better positions us for future work with the Legend. Although we also missed the [discrete] estimate of cost, this was related to timing of shipyard and maintenance activities in the quarter with our current estimate of full-year cost actually below our previous average guidance. Discrete items adversely affecting second quarter net income included $58 million for the impairment of the Arctic II and Arctic IV, $15 million of discrete tax items, $23 million for impairment of intangible assets related to drilling management services, net losses primarily related to retirement of debt and the divestitures of certain joint venture interests and finally the GSF merger related severance costs. First quarter 2009 net income was adversely impacted by similar items, totaling $264 million,…

Thanks, Greg and good morning to everyone. I will move straight to the various markets and we will begin with a discussion on the deepwater market. We continue to be optimistic on the deepwater opportunity in the near and long-term with Petrobras leading the charge as they continue to contract deepwater units to meet their immediate demand. The Cajun Express contract for three years convertible to five years strengthens our position and relationship with Petrobras in Brazil and it is further evidence of the long-term strength of the deepwater market. We expect to see more contracts for existing rigs executed in Brazil over the next several months. ': Unfortunately, we have experienced a gap in demand for capable units in 5,000 foot water depth. As the majority of the current deepwater tenders have requirements greater than 5,000 feet. We had two deepwater units available in 2009, specifically the Rather and the Sedco 709, and follow-on work is not obvious for either unit. While the Rather does have several potential opportunities in the North Sea, none are firm, and delays in commencement of these programs could result in some idle time. We do believe that the Sedco 709 will have future opportunities in West Africa and Brazil, but at the moment, the near-term opportunities in those areas are all in deeper waters. We are also encouraged by drilling and tendering activity in frontier and emerging provinces such as Israel, Mexico, Indonesia, Black Sea and Libya, and believe incremental demand will result from these activities over the long-term. Now turning to the harsh environment market. We are working to complete our Arctic design drillship, and finalize shipyard pricing in order to continue to progress our discussions with our customers in this technically demanding environment. We continue to be encouraged with the discoveries…

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(Operator Instructions). Our first question this morning will come from Arun Jayaram with Credit Suisse.

I was wondering if you could comment a little bit, at least in this quarter, about the deepwater revenue efficiency. The utilization, I guess, for all three segments was below my expectations. I was wondering if you can comment if there is any quarter specific items that led to the lower than expected utilization?

I will let Steven handle that question.

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Steven, could any of the BOP issues impact Q3?

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Our next question will come from Jim Crandell with Barclays.

My first question is about Brazil. Can you give me your opinion on whether the first round of the dozen rigs or so in Brazil, the rigs that have not yet gotten financing, do you think they will eventually be built. Then, what are you looking for in the second round coming from Brazil in terms of timing, and in terms of restrictions relative to maybe local content?

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Sure, Bob. Hi, Jim. What we hear out of Brazil is, out of the next tranche of tenders one will be coming from engineering, and we believe that that is going to be around seven units, and those are going to be placed directly with a shipyard from Petrobras and they will be Petrobras owned units. ': ':

Do you think this will be decided and the bid request will go out before year end?

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': So, if the oil prices stabilize at $70, $75, $80 or more, my guess is, most of what people were drilling for in the midwater a year ago when demand was high, is likely to come back. We also need to get a little bit of confidence in the capital markets, because so many of the players in the midwater business are independents who need to have access to capital in order to drill once the prospects become economic. I could see that if the oil prices stabilize and stay up next year, the demand ought to start going back towards where it was and with no increase in supply. In fact, if we end up stacking as an industry a number of these midwater rigs and have significant cost to bring them out, we might effectively have reduced supply. So, I am fairly optimistic on a longer term outlook for the midwater market. ': ':

Brian Uhlmer with Pritchard Capital. Your line is open.

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Have they changed the tendering documents to request qualifications for experienced bidders or have you seen a change in that in the last few tenders?

No.

No? Okay. Could you give an update on, at some point you were working on an Arctic vessel. Do you have any update on that?

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Our next question comes from Collin Gerry with Raymond James.

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I would say that we have certainly seen more interest. There is more traffic from the demand side. I think Bob articulated quite well the supply side and the issue space there, and the onslaught of the newbuilds that are coming onto the market . We have seen many more bids. We have seen quite frankly in the UK and in Southeast Asia. So, we do see some good opportunities. ONGC is coming out certainly some long-term tenders. We know Pemex is coming out with some long-term tenders . It is just basically a wait and see. ':

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I think the question is not so much specifically aimed at high spec markets like the North Sea, but whether or not some of the newbuild higher spec rigs will displace the older rigs simply because of technical capabilities. ': ': ': ':

We go now to Leon Cooperman with Omega Advisers.

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Yes, we will.

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[Nathan Barnes] with Edward Jones.

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More on the ultra-deepwater. Is the competition that you are seeing there increasing or are you pretty confident going forward that you are so far ahead of everyone else in technology that you are not going to see a whole lot of increased competition in the near term?

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My first question is related to the deepwater category. The deepwater category, where you have the low utilization, was that a reflection of the old fleet?

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And those four, do they have to be built with the local content down in Brazil?

They have to be built in Brazil, but the tender obviously has not come out, and we do not know the specifics of the local content percentages or requirements.

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So a little bit less than $200 million each?

For both rigs.

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That is exactly right. If you think that there is any possibility that rates could move back towards $350,000 or $400,000, you cash flow $100 million to $150 million a year off of a midwater floater. That would easily pay for the upgrade and you would presumably, in that kind of a market, be able to get more than a one year contract. So, there is just too much potential option value there.

We need to move on to the next caller please.

Our next question comes from Lukas Daul with Enskilda.

I noticed that this is the first time where you are sort of seeing some softness in the deepwater market and you, of course, are limited to the segment of 5000 feet water depth. But given that there are 20 ultra-deepwater floaters becoming available in 2011, and if Petrobras gets enough with the seven by the end of this year. Do you think it is just a matter of time and six months from now, you would be seeing the same softness in the ultra-deepwater segment as well ? Or are the other guys big enough or are their requirements big enough to fill in the demand?

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We take our next question from Mike Urban with Deutsche Bank.

I was wondering if you could follow up on your comment on frontier markets and when we might expect to see some meaningful incremental demand out of some of those markets given the timing on that and what the potential might be there in terms of rig demand?

The question is about the frontier markets, some of the emerging deepwater provinces perhaps. I will let Terry comment on that.

We are very hopeful and certainly our clients are also very interested in the Black Sea. We have several clients that are going to be motoring rigs up there shortly. In fact, one of our clients with the Deepwater Champion will be taking that rig to the Black Sea. So we have a lot of optimism that that certainly is going to be an interesting emerging market. Also we have seen, with the recent discovery off of Israel with Noble Energy, that is going to be a big development and there is a current open tender for that and we hope that that decision is made shortly and that certainly turned into a deepwater province. We also know there is a lot of deepwater drilling going on right now offshore Indonesia and our clients are hopeful there. We have one of our rigs that is headed that way on the GSF Explorer as soon as it completes with BP in Angola. So there is a lot of opportunity. There is some current drilling going on that we are hopeful for good results and then within the next couple of years, other markets we believe will be opening up.

We have time for one more question.

Our final question will come from Jud Bailey with Jefferies & Company. Jud Bailey - Jefferies & Company: I wanted to circle back on some of the commentary on midwater versus jackup and clarify, understanding there is different supply dynamics for each segment. Terry, at this point in time, is it fair to say that you have seen a bit more of a pickup in demand so far for the jackups relative to what you are seeing on the midwater side?

': ': Jud Bailey - Jefferies & Company: Then my last question is for Greg. You took another write-down for the Arctic II and IV and you say you are going to have the sale in hand here shortly. Are you going to have to write down some of the other midwater rigs going forward as that rig gets sold to kind of mark to market or how is that going to work as far as where your midwater rigs are on your books currently?

That will conclude our question-and-answer session. I would like to turn the program back to our speakers for any additional or closing comments.

Thank you, everyone, for your participation. You may now disconnect.