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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"&gt;Interest is capitalized on construction-in-progress at the weighted average cost of debt
   outstanding during the period of construction. Capitalized interest was $13&amp;#160;million and $26
   million for the three and six months ended June&amp;#160;30, 2010, respectively, as compared to $13&amp;#160;million
   and $29&amp;#160;million for the three and six months ended June&amp;#160;30, 2009 respectively.
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"&gt;During the first quarter of 2009, we recognized a charge of $12&amp;#160;million related to the &lt;i&gt;Noble
   Fri Rodli&lt;/i&gt;, a submersible that has been cold stacked since October&amp;#160;2007. We recorded the charge as
   a result of a decision to evaluate disposition alternatives for this rig. As of June&amp;#160;30, 2010, we
   have not disposed of this rig.
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"&gt;In the second quarter of 2009, we recorded a $17&amp;#160;million charge related to our jackup, the
   &lt;i&gt;Noble David Tinsley&lt;/i&gt;, which experienced a &amp;#8220;punch-through&amp;#8221; while the rig was being positioned on
   location offshore Qatar. The
   incident involved the sudden penetration of all three legs through the sea bottom, which resulted
   in severe damage to the legs and the rig.
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      <ElementDefenition>Disclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment.</ElementDefenition>
      <ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
 -Publisher AICPA
 -Name Accounting Principles Board Opinion (APB)
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 -Paragraph 5

Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher SEC
 -Name Regulation S-X (SX)
 -Number 210
 -Section 02
 -Paragraph 13
 -Subparagraph b
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