EXHIBIT 10.18

                                 TERMINATION OF
             ASSIGNMENT OF DRILLING CONTRACT REVENUES AND EARNINGS

        THIS AGREEMENT dated as of November 29, 1995, among Reading &  Bates
  Corporation,  a corporation organized  and existing under the  laws of the
  State of  Delaware ("RBC"),  Reading & Bates Drilling  Co., a  corporation
  organized and existing under  the laws of  the State of Oklahoma  ("RBD"),
  Reading &  Bates Exploration  Co., a  corporation  organized and  existing
  under  the laws  of the  State of Oklahoma  ("RBX")and Reading  and Bates,
  Inc.,  a corporation organized and existing under the laws of the State of
  Oklahoma ("RBI"),  (RBC, RBD,  RBX  and RBI  being referred  to  hereafter
  collectively as  the "Original  Borrowers" or  "Assignors") and  Bank One,
  Texas, N.A., a national banking association, as Trustee (the "Assignee").

                              W I T N E S S E T H:

        WHEREAS, pursuant to the Credit Facility Agreement dated as of March
  27,  1991, as amended May  24, 1991, June 28, 1991,  August 30, 1991, June
  30, 1992  and  February 23,  1993 (as  so  amended, the  "Original  Credit
  Agreement"), Internationale Nederlanden Bank, N. V. (formerly known as NMB
  Postbank Groep, N.V.,  the "Lender") agreed to provide funding  to certain
  of the Original Borrowers  in the aggregate principal amount of up  to USD
  112,000,000; and

        WHEREAS,  the Original Borrowers (the "Assignors"),  as security for
  their obligations under  the Original Credit Agreement,  entered into that
  Assignment of Drilling Contract Revenues and Earnings dated March 29, 1991
  (as amended, from time to time, the "Assignment");

        WHEREAS,  with  Reading  and  Bates  Borneo  Drilling  Co., Ltd.,  a
  corporation organized and existing under the laws of the State of Oklahoma
  ("RBB")  and Reading &  Bates (A)  Pty. Ltd., a corporation  organized and
  existing under the  laws of Australia ("RBA"), the Original  Borrowers and
  the Lender amended and restated the Original Credit Agreement pursuant  to
  the terms of  that certain Amended and Restated Credit  Facility Agreement
  dated  as of  April 27,  1995, as  amended (as  so amended,  the "Restated
  Credit Agreement"); and

        WHEREAS, the Original Borrowers, RBB, RBA and the Lender have agreed
  to terminate the Restated Credit  Agreement and for Lender  to release all
  collateral  given  in  security  for  the  obligations  of   the  Original
  Borrowers, RBB and RBA thereunder, including this Assignment, as follows.

        NOW THEREFORE, in consideration of the above recitals and for  other
  good and valuable  consideration, the receipt and sufficiency of  which is
  hereby acknowledged, the Trustee, upon instructions of the Lender,  agrees
  to terminate and release the Assignment, effective as of  the date hereof,
  as follows.

        1.    The Assignment is terminated, effective as of the date hereof,
              and  the  Original Borrowers  are  released from  any and  all
              obligations thereunder.

        2.    The Trustee  agrees to  execute and  deliver to  the  Original
              Borrowers any and all UCC-3 Termination Statements  for filing
              in all relevant jurisdictions.   

        All capitalized terms used herein but not defined herein shall  have
  the meanings given to them in the Assignment.

  THIS  AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED  IN ACCORDANCE WITH THE
  INTERNAL LAWS OF THE STATE  OF NEW YORK AND MAY NOT BE AMENDED  OR CHANGED
  EXCEPT BY AN INSTRUMENT IN WRITING.

        IN  WITNESS  WHEREOF, the  parties hereto  have  duly  executed this
  Termination Agreement on the date first written above.


                                      READING & BATES CORPORATION


                                      By:                            
                                            Name:                     
                                            Title:                    


                                      READING & BATES DRILLING CO.


                                      By:                             
                                            Name:                     
                                            Title:                    


                                      READING & BATES EXPLORATION CO.


                                      By:                             
                                            Name:                     
                                            Title:                    


                                      READING AND BATES, INC.


                                      By:                             
                                            Name:                     
                                            Title:                    


                                      BANK ONE, TEXAS, N.A., as Trustee


                                      By:   __________________________
                                            Name:  ___________________
                                            Title: ___________________