Rowan Obtains Drilling Contracts in Saudi Arabia

Rowan Companies, Inc. was awarded term drilling contracts by the Saudi Arabian Oil Company (Saudi ARAMCO) for two Tarzan Class jack-up drilling rigs to begin operating offshore Saudi Arabia in 2007. Each contract is for a four-year term. The relocation of the two rigs from the Gulf of Mexico will begin in January 2007 and the rigs should be operational in Saudi Arabia by the end of the first quarter. Rowan estimates that revenues from the contracts will be in excess of $550m. Danny McNease, Chairman and Chief Executive Officer, commented, "We are pleased to expand our relationship with Saudi ARAMCO and again want to thank Rawabi Trading & Contracting Co. Ltd. for their assistance. These contracts reaffirm our strategic plan to build high-specification jack-up rigs capable of ultra-deep drilling, and to geographically diversify our fleet. We now have 13 of our 20 jack-up rigs or 65% of our offshore fleet committed well into 2007, including nine rigs that extend to 2009 or beyond. In addition, after moving these rigs to Saudi Arabia we will have 60% of our offshore fleet outside the US Gulf of Mexico."