Transocean Under Investigation For Possible Drug Ties

Transocean RIG, the world's largest provider of contract offshore drilling services, is under investigaton by the Treasury Department for the company's business operations in Burma, which may include a contract with a local businessman with drug ties. Regulatory filings showed the firm was hired late last year to do drilling work in Burmese waters co-owned by a company controlled by Stephen Law, a junta crony businessman alleged by the US government and analysts to be a major drug-money launderer, according to Mizzima, a media blog that tracks Burma. The New York Times has also reported on Transocean's dealings in Burma. U.S. government investigators have reportedly listened to recorded phone calls that highlight the company's questionable business dealings in Burma. Cnooc CEO, China's largest offshore oil driller, hired Transocean to operate in Burma, according to regulatory filings. The Times reported in July that Transocean claimed it had not violated U.S. sanctions Burma because Law's name is not part of the Cnooc contract.