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Marine Insurance SeminarHouston, TexasSeptember 19, 2006

Presented by:

Lawrence R. DickersonPresident & Chief Operating Officer

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Impact of Katrina/Rita

Improving Rigs to Withstand Hurricanes

Insuring for Hurricanes

The Future

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Katrina Damage – Ocean Warwick

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Installation of GPS Systems

Lily - “Where’s our rig?”

Ivan – “Oops!”

Katrina/Rita – “Let’s field test this baby.”

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Anchor Pattern

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Twelve Point Moorings

Noble – Installation of new winches

Diamond Offshore - Passive 12 point moorings

Transocean – Similar to Diamond

GlobalSantaFe – Polyester inserts

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Our Insurance Decision

Warwick LossInsurance Proceeds 50Book Value 14

Book Gain 36

Replacement Cost of Rig 100

Discounted Earnings @ $100k/day 150

Stock Market Value 200

($ Millions)

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DO Insurance Terms($ In Millions)

Premium 20 60 15

Deductible 5 10 10

Aggregate No Yes Yes

Cap 200 No coverage

Pre RenewalKatrina Offer Accepted

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Market Decisions

Self Insured Diamond, Ensco

Pay Premiums > 2x Global, Rowan

Pay Premiums < 1x Transocean, Noble

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The Future

Aug ’99 Jul ‘06

Working Jack-ups in GOM 87 54 *

Stacked, Shipyard, etc. 58 33

145 87

* Post announced rig departures.

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Statements made during the scope of the Diamond Offshore Drilling, Inc.’s presentation that state the Company’s or management’s “intentions”, “plans”, “estimates”, “expectations”, “anticipations”, “predictions” and words of similar import are “forward-looking statements” made within the meaning of the “Safe Harbor” provisions under the Private Securities Litigation Reform Act of 1995.

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove accurate. Important factors with respect to such forward-looking statements,including risks and uncertainties that could cause actual results to differ materially from the Company’s expectations, include but are not limited to:

The overall market demand for the Company’s drilling services, foreign and domestic oil and gas exploration and production activity; dates that drilling rigs will enter service; day rate revenue for the Company’s drilling rigs; industry competition; customer preferences and various other risk factors as may be discussed in reports filed with the U.S. Securities & Exchange Commission.

The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based, which speak as of the date of today's presentation.

Information presented herein can be found within Diamond Offshore Drilling, Inc.’s public filings with the U.S. Securities & Exchange Commission. Please refer to the Company’s 10-K, 10-Q or 8-K filings for more detailed information.

Safe Harbor Statement