Transocean Proxy Statement and 2010 Annual Report

TRANSOCEAN LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
A substantial portion of our assets are mobile. Asset locations at the end of the period are not necessarily indicative of the
geographic distribution of the revenues generated by such assets during the periods. Although we are organized under the laws of
Switzerland, we do not conduct any operations and do not have operating revenues in Switzerland. At December 31, 2010 and 2009, we
had $15 million and $19 million, respectively, of long-lived assets in Switzerland.
Our international operations are subject to certain political and other uncertainties, including risks of war and civil disturbances
(or other events that disrupt markets), expropriation of equipment, repatriation of income or capital, taxation policies, and the general
hazards associated with certain areas in which operations are conducted.
For the years ended December 31, 2010, 2009 and 2008, BP accounted for approximately 10 percent, 12 percent and
11 percent, respectively, of our operating revenues. The loss of this customer or other significant customers could have a material adverse
effect on our results of operations.
Note 23—Related Party Transactions
Pacific Drilling Limited—We hold a 50 percent interest in TPDI, a consolidated British Virgin Islands joint venture company
formed by us and Pacific Drilling, a Liberian company, to own and operate Dhirubhai Deepwater KG1 and Dhirubhai Deepwater KG2.
Effective October 18, 2010, Pacific Drilling has the unilateral right to exchange its interest in the joint venture for our shares or cash, at an
amount based on an appraisal of the fair value of the drillships, subject to certain adjustments.
As of December 31, 2010 and 2009, TPDI had outstanding promissory notes in the aggregate amount of $296 million, of which
$148 million was due to Pacific Drilling and was included in long-term debt on our consolidated balance sheet.
Angco Cayman Limited—We hold a 65 percent interest in ADDCL, a consolidated Cayman Islands joint venture company
formed to own and operate Discoverer Luanda. Angco Cayman Limited, a Cayman Islands company, holds the remaining 35 percent
interest in ADDCL. Beginning January 31, 2016, Angco Cayman Limited will have the right to exchange its interest in the joint venture for
cash at an amount based on the appraisal of the fair value of the drillship, subject to certain adjustments.
Overseas Drilling Limited—We hold a 50 percent interest in ODL, an unconsolidated Cayman Islands joint venture company,
which owns the Joides Resolution. Siem Offshore Invest AS owns the other 50 percent interest in ODL. Under a management services
agreement with ODL, we provide certain operational and management services. We earned $2 million for these services in each of the
years ended December 31, 2010, 2009 and 2008.
We have a $10 million loan facility with ODL. ODL may demand repayment of the borrowings at any time upon five business
days prior written notice, and any amounts due to us from ODL may be offset against the borrowings at the time of repayment. As of
December 31, 2010 and 2009, $10 million was outstanding under this loan agreement.
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