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Order issued to Diamond Offshore Netherlands B.V.

The Petroleum Safety Authority Norway has issued an order to Diamond Offshore Netherlands B.V. following an audit of HSE management on the Ocean Vanguard.


The Petroleum Safety Authority Norway conducted an audit of Diamond Offshore Netherlands B.V. (Diamond) during the period 21-24 February 2006 in connection with drilling activity involving the Ocean Vanguard. The audit targeted Diamond's management system and technical and operational factors on the facility during activity carried out for ExxonMobil on Wishbone.

Based on our findings during the audit, a notification of order was issued to Diamond. We have now issued the following order:

1. Pursuant to Section 20 of the Management Regulations relating to handling of nonconformities, Diamond Offshore B.V. is ordered to implement a system for handling nonconformity which takes into account the requirements of the regulation, cf. Chapter 5.1.1 of the report.

Deadline for complying with the order is 3 May 2006. We must be notified when the order has been carried out.

2. Pursuant to Section 42 of the Activities Regulations relating to maintenance, and Section 44 relating to the maintenance program, Diamond Offshore Netherlands B.V. is instructed to ensure that the maintenance system ORION comprises all equipment on the facility, and that the equipment and systems are maintained pursuant to the company's requirements, cf. Chapter 5.1.2 of the report. Safety-critical equipment must be given priority.

Deadline for complying with the order is 31 May 2006. We must be notified when the order has been carried out.

3. Pursuant to Section 21 of the Management Regulations relating to follow-up, Diamond Offshore Netherlands B.V .is instructed to implement necessary corrective measures in the management system, in order for the company's follow-up activities to contribute towards preventing the weaknesses, faults and flaws pointed out in the report, cf. Chapter 5.1.3 of the report.

Deadline for complying with the order is 23 June 2006. We must be notified when the order has been carried out.

Contact in the PSA:
Ole-Johan Faret,
Press spokesperson
E-mail:
ole-johan.faret@ptil.no
Phone: +47 970 54 064