Document:

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                                                                   EXHIBIT 10.11

                           SECOND AMENDED AND RESTATED
                             SHAREHOLDERS AGREEMENT

                                      AMONG

                            PRIDE INTERNATIONAL, INC.

                  FIRST RESERVE FUND VII, LIMITED PARTNERSHIP,
                       FIRST RESERVE FUND VIII, L.P., AND
                           FIRST RESERVE FUND IX, L.P.

                                  MARCH 4, 2002

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                           SECOND AMENDED AND RESTATED
                             SHAREHOLDERS AGREEMENT

         This Second Amended and Restated Shareholders Agreement (this
"Agreement") is entered into as of the 4th day of March, 2002 by and among Pride
International, Inc., a Delaware corporation (the "Company"), First Reserve Fund
VII, Limited Partnership, a Delaware limited partnership ("First Reserve VII"),
First Reserve Fund VIII, L.P., a Delaware limited partnership ("First Reserve
VIII") and First Reserve Fund IX, L.P., a Delaware limited partnership ("First
Reserve IX") (collectively, "First Reserve").

                                   WITNESSETH:

         WHEREAS, pursuant to that certain Securities Purchase Agreement entered
into by and between First Reserve VII and Pride International, Inc., a Louisiana
corporation and the predecessor of the Company ("Pride-Louisiana"), dated as of
May 5, 1999, as amended by the Letter Agreements dated June 4, 1999, June 18,
1999, June 21, 1999 and July 14, 1999, by the Put and Exchange Agreement dated
September 14, 1999 and by the Exchange Agreement dated March 9, 2001 (as so
amended, the "Purchase Agreement"), First Reserve VII received upon consummation
of the transactions contemplated by the Purchase Agreement, shares of common
stock of Pride-Louisiana;

         WHEREAS, pursuant to that certain Securities Purchase Agreement entered
into by and among First Reserve VIII, Pride-Louisiana and Twin Oaks Financial
Ltd. dated as of March 31, 2000 (the "Second Purchase Agreement"), First Reserve
VIII received upon consummation of the transactions contemplated thereby
additional shares of such common stock;

         WHEREAS, pursuant to that certain Agreement and Plan of Merger, dated
as of May 23, 2001, among Pride-Louisiana, the Company, Marine Drilling
Companies, Inc., a Texas corporation ("Marine"), and AM Merger, Inc., a Delaware
corporation ("AM Merger"), following the merger of Marine with and into AM
Merger, Pride-Louisiana merged with and into the Company, with the Company
surviving, pursuant to which merger each outstanding share of the common stock
of Pride-Louisiana was converted into one share of common stock, par value $.01
per share, of the Company (the "Common Stock");

         WHEREAS, in connection with an offering of 2 1/2% Convertible Senior
Notes Due 2007 of the Company (the "Note Offering"), First Reserve IX may
purchase up to 7,874,015 shares of Common Stock (the "First Reserve IX
Purchase"); and

         WHEREAS, in connection with the Note Offering, the parties hereto
desire to amend and restated the First Amended and Restated Shareholders
Agreement, dated March 31, 2000, as amended by the Exchange Agreement dated
March 9, 2001, on the terms set forth herein.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, the parties hereto agree as follows:

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                                    ARTICLE 1
                                  DEFINED TERMS

         Section 1.1 Defined Terms. The following capitalized terms when used in
this Agreement shall have the following meanings:

         "Affiliate" shall have the respective meanings assigned thereto in Rule
405 as presently promulgated under the Securities Act.

         "Amethyst Agreements" means the Put and Exchange Agreement dated
September 14, 1999 between the Company and First Reserve, as amended by the
Exchange Agreement dated March 9, 2001 among the Company, First Reserve VII and
First Reserve VIII.

         "beneficial ownership" and "group" shall have the respective meanings
assigned thereto in Rules 13d-3 and 13d-5 as presently promulgated under the
Exchange Act.

         "Board" means the Board of Directors of the Company.

         "Common Stock" has the meaning assigned in the Recitals to this
Agreement.

         "Company Securities" means, collectively, the Common Stock and any
class or series of the Company's preferred stock, and any other securities,
warrants or options or rights of any nature (whether or not issued by the
Company) that are convertible into, exchangeable for, or exercisable for the
purchase of, or otherwise give the holder thereof any rights in respect of
Common Stock, or any class or series of Company preferred stock that is entitled
to vote generally for the election of directors or otherwise.

         "Director" means any member of the Board.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "First Reserve Group" means, collectively, First Reserve and its
Affiliates; provided, however, that a Person shall not be deemed a member of the
First Reserve Group if the only reason that such Person would be deemed an
Affiliate of First Reserve is because it is (a) a limited partner of First
Reserve, (b) an operating company in which First Reserve (and/or any other fund
or funds similar to First Reserve that is controlled by, controlling or under
common control with First Reserve) has an investment, but in which First Reserve
and such other funds do not, in the aggregate (i) have at least a majority of
the voting power (defined in a manner consistent with the definition of Voting
Power set forth herein with respect to the Company) of the securities of such
operating company, or (ii) the contractual right to designate at least a
majority of the members of the board of directors (or similar governing body) of
such operating company, or (c) an Affiliate of an operating company described in
clause (b) who is not otherwise an Affiliate of the First Reserve Group.

         "HSR Waiting Period" shall mean any applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

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         "Person" means an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture or other entity of whatever nature.

         "Purchase Agreement" shall have the meaning assigned in the Recitals to
this Agreement.

         "Purchase Agreements" means, when the plural is used, the Purchase
Agreement and the Second Purchase Agreement, collectively.

         "Registration Rights Agreement" means the provisions of Article 5
hereof, as amended, modified or supplemented from time to time.

         "Second Purchase Agreement" shall have the meaning assigned in the
Recitals to this Agreement.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Termination Date" means April 1, 2009.

         "Voting Power" means, at, any measurement date, the total number of
votes that could have been cast in an election of directors of the Company had a
meeting of the stockholders of the Company been duly held based upon a record
date as of the measurement date if all Company Securities then outstanding and
entitled to vote at such meeting were present and voted to the fullest extent
possible at such meeting.

         Section 1.2 Other Definitions. Definitions applicable to the
Registration Rights Agreement provisions of this Agreement are found in
Article 5 hereof.

         Section 1.3 Construction. Whenever the context requires, the gender of
all words used in this Agreement includes the masculine, feminine, and neuter,
and the singular shall include the plural, and vice versa. Except as specified
otherwise, all references to Articles and Sections refer to articles and
sections of this Agreement, and all references to exhibits are to Exhibits
attached to this Agreement, each of which is made a part of this Agreement for
all purposes. The word "including" shall mean "including, without limitation"
unless the context otherwise requires.

                                    ARTICLE 2
                           BOARD OF DIRECTORS; VOTING

         Section 2.1 Election of Directors.

                  (a) First Reserve VIII shall have the right (i) to nominate
one person for election to the Board; provided, however, that the person
nominated shall be a managing director or other higher official of First Reserve
Corporation or otherwise be reasonably acceptable to the Company, and (ii) (A)
to receive all notices, reports and other communications sent to Directors at
the same time they are transmitted to Directors, and to receive reasonable
notice of and to have

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one representative attend any meeting of the Company's Board, (B) to consult
with and advise members of senior management of the Company, and (C) upon
reasonable notice, to have access to the books and records of the Company. First
Reserve VIII may assign (without notice to the Company) any or all of the rights
under this Article II to First Reserve VII or First Reserve IX to the extent
deemed advisable by First Reserve in order to comply with laws and regulations
applicable to the First Reserve Group and the members thereof; provided,
however, that First Reserve VIII shall not be able to assign such rights to
First Reserve IX unless and until any applicable HSR Waiting Period with respect
to the First Reserve IX Purchase shall have expired or been terminated. First
Reserve IX hereby represents and warrants to the Company that it is acquiring
the Common Stock pursuant to the First Reserve IX Purchase solely for the
purpose of investment and that it has no intention of participating in the
formulation, determination or direction of the basic business decisions of the
Company unless and until such HSR Waiting Period shall have expired or been
terminated. If any such assignment takes place, all references in this Article 2
shall thereafter be deemed to refer to the assignee of such rights. First
Reserve VIII hereby designates William E. Macaulay as its initial nominee for
election to the Company's Board.

                  (b) At each election of directors at which the term of the
nominee of First Reserve VIII as a director of the Company expires, the Company
will nominate the designee of First Reserve VIII for election to the Company's
Board for the succeeding term for which Directors are elected, will recommend
his or her election to the Company's stockholders and otherwise will use its
reasonable best efforts to cause the Company's stockholders to elect the
designee of First Reserve VIII to the Company's Board. The Company shall use its
reasonable best efforts to solicit from its stockholders proxies voted in favor
of such nominee, and shall vote all management proxies in favor of such nominee,
except for such proxies that specifically indicate to the contrary. The rights
set forth in this Section 2.1(a) shall survive until the termination of this
Agreement as provided in Section 6.1 hereof.

                  (c) In the event that any Director designated pursuant to
Section 2.1(a) for any reason ceases to serve as a member of the Board during
his term of office, First Reserve VIII shall be entitled to designate a
successor Director to fill the vacancy created thereby on the terms and subject
to the conditions of this Section 2.1. If and to the extent that the remaining
members of the Board are entitled to fill vacancies on the Board, upon the
occurrence of any vacancy, the Board will promptly take any actions necessary to
fill such vacancies in accordance with the foregoing provision in order to cause
the election of the nominee of First Reserve VIII.

         Section 2.2 No Inconsistent Company Actions. The Company hereby agrees
not to take any action inconsistent with the provisions of Section 2.1.

                                    ARTICLE 3
                   ACQUISITION AND SALE OF COMPANY SECURITIES

         Section 3.1. Company Securities. First Reserve covenants and agrees
with the Company that, without the consent of the Company, except for the
Company Securities acquired pursuant to the Purchase Agreements or any similar
agreement to which the Company and First Reserve (or its Affiliates or
designees) are parties, any Company Securities acquired with the

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consent of the Company (including Company Securities acquired pursuant to the
First Reserve IX Purchase) and any Company Securities issued pursuant to a stock
split, stock dividend or recapitalization with respect to such Company
Securities, no member of the First Reserve Group shall, directly or indirectly,
acquire any Company Securities, if the effect of such acquisition, agreement or
other action would be to increase the aggregate beneficial ownership of Company
Securities by the First Reserve Group to an amount exceeding 19% of either the
Voting Power or the number of outstanding shares of any class or series of
Company Securities. The Company has taken all necessary action to, and will
continue to, ensure that no member of the First Reserve Group will become an
"Acquiring Person" under the Rights Agreement, dated as of September 13, 2001,
between the Company and American Stock Transfer & Trust Company, as rights
agent, as it may be amended from time to time, as a result of any purchase of
Company Securities in compliance with this Section 3.1.

         Section 3.2 Distribution of Company Securities. First Reserve covenants
that it shall not, and that it shall cause each other member of the First
Reserve Group that it controls not to, directly or indirectly, sell, transfer
beneficial ownership of, pledge, hypothecate or otherwise dispose of any Company
Securities, except by conversion, exchange or exercise of such Company
Securities pursuant to their terms in a manner not otherwise in violation of
Section 3.1 or pursuant to:

                  (a) a bona fide pledge of or the granting of a security
interest or any other lien or encumbrance in such Company Securities to a lender
that is not a member of the First Reserve Group to secure a bona fide loan for
money borrowed made to one or more members of the First Reserve Group, the
foreclosure of such pledge or security interest or any other lien or encumbrance
that may be placed involuntarily upon any Company Securities, or the subsequent
sale or other disposition of such Company Securities by such lender or its
agent;

                  (b) a transfer, assignment, sale or disposition of such
Company Securities to another member of the First Reserve Group that has signed
this Agreement;

                  (c) a distribution of Company Securities to any partner of
First Reserve; provided that any distributee that is a member of the First
Reserve Group has signed this Agreement; and provided, further that any
arrangements coordinated or initiated by or on behalf of First Reserve to assist
its limited partners in the sale of Company Securities distributed to them must
comply with the provisions of this Section 3.2;

                  (d) sales in public offerings registered under the Securities
Act;

                  (e) sales effected in compliance with the provisions of Rule
144 under the Securities Act;

                  (f) other privately negotiated sales of Company Securities;

                  (g) upon consummation of or otherwise in connection with a
business combination or similar transaction involving the Company that is
approved by the Board;

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                  (h) sales in a tender offer open to all holders of Company
Securities; or

                  (i) put rights and call rights granted in the Second Purchase
Agreement.

Notwithstanding anything to the contrary in this Section 3.2, in effecting any
sale, transfer of any beneficial interest in or other disposition of Company
Securities pursuant to Sections 3.2(c), (d) and (f), above, the members of the
First Reserve Group selling, transferring or disposing such Company Securities
shall, unless the Company consents otherwise, use their reasonable best efforts
to refrain from knowingly selling, transferring or disposing of such number of
Company Securities as represent either the right to acquire or ownership of 5%
or more of the Voting Power to any one Person or group of Persons (other than
Twin Oaks Financial Ltd.).

         Section 3.3. Proxy Solicitations. First Reserve agrees that as a
stockholder, the First Reserve Group shall vote or cause to be voted all Company
Securities of which any member of the First Reserve Group is the beneficial
owner with respect to each matter submitted to the Company's stockholders
providing for, involving, expected to facilitate or that could reasonably be
expected to result in a business combination or other change in control of the
Company that has not been approved by the Board (including without limitation
the election or removal of one or more Company directors or one or more nominees
for director proposed by the Board), either (a) in the manner recommended by the
Board, or (b) proportionately with all other holders of Company Securities
voting with respect to such matter (provided, that the First Reserve Group shall
at all times retain the power to vote for the election of the nominee of First
Reserve VIII or its assignee to the Company's Board). First Reserve hereby
agrees that it and each member of the First Reserve Group that it controls shall
not take any action, or solicit proxies in any fashion, inconsistent with the
provisions of this Section 3.3.

         Section 3.4. Groups. First Reserve covenants that it shall not, and
that no other member of the First Reserve Group that it controls shall, join a
partnership, limited partnership, syndicate or other group, or otherwise act in
concert with any other Person, for the purpose of acquiring, holding, voting or
disposing of any Company Securities, other than the First Reserve Group itself.

         Section 3.5. Limitation on Covenants. Notwithstanding any provision to
the contrary in this Agreement, during any period that any person designated by
First Reserve VIII to serve as a Director in accordance with the provisions of
Section 2.1(a) is not serving as a Director as a result of the failure of the
Company or the Board to comply with the terms of this Agreement, or if any such
designee is not elected by the stockholders (and Section 2.1(a) and Section 2.2
are complied with), then the covenants set forth in this Article 3 shall cease
to be effective during such period; provided, however, that if a person
designated by First Reserve ceases to be a Director by reason of death or
resignation, then the provisions of this Section 3.5 shall not apply if the
Board appoints First Reserve VIII's (or its assignee's) designated replacement
to fill any such vacancy within 15 business days after the Company receives
notice of such designation. The provisions of this Section 3.5 shall be in
addition to any other remedies that First Reserve may have in connection with a
breach of the provisions of Article 2 hereof.

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                                    ARTICLE 4
                         LEGEND AND STOP TRANSFER ORDER

         Section 4.1 Legend and Stop Transfer Order. To assist in effectuating
the provisions of this Agreement, First Reserve hereby consents: (a) to the
placement, on certificates issued with respect to the shares of Common Stock
issued to it pursuant to the Purchase Agreements or otherwise promptly after any
Company Securities become subject to the provisions of this Agreement, of the
following legend on all certificates representing ownership of Company
Securities owned of record by any member of the First Reserve Group or by any
Person where a member of the First Reserve Group is the beneficial owner
thereof, until such shares are sold, transferred or disposed in a manner
permitted hereby to a Person who is not then a member of the First Reserve
Group:

         THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
         PROVISIONS OF AN AGREEMENT AMONG PRIDE INTERNATIONAL, INC. AND FIRST
         RESERVE FUND VII, LIMITED PARTNERSHIP, FIRST RESERVE FUND VIII, L.P.,
         AND FIRST RESERVE FUND IX, L.P. AND MAY NOT BE VOTED, SOLD,
         TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN
         ACCORDANCE THEREWITH. COPIES OF THE AGREEMENT ARE ON FILE AT THE OFFICE
         OF THE CORPORATE SECRETARY OF PRIDE INTERNATIONAL, INC.

; and (b) to the entry of stop transfer orders with the transfer agent or agents
of Company Securities against the transfer of Company Securities, except in
compliance with the requirements of this Agreement, or if the Company acts as
its own transfer agent with respect to any Company Securities, to the refusal by
the Company to transfer any such securities, except in compliance with the
requirements of this Agreement. The Company agrees to remove promptly all
legends and stop transfer orders with respect to the transfer of Company
Securities being made to a Person who is not then a member of the First Reserve
Group in compliance with the provisions of this Agreement.

                                    ARTICLE 5
                          REGISTRATION RIGHTS AGREEMENT

         Section 5.1. Defined Terms. The following capitalized terms when used
in this Registration Rights Agreement shall have the following meanings:

         "Amethyst Registrable Securities" means the shares of Common Stock that
(i) are Registrable Securities and (ii) are received by a member of the First
Reserve Group upon exchange of the Exchangeable Stock pursuant to Section 5.10
or 5.11 of the Purchase Agreement or would be received by a member of the First
Reserve Group upon exercise of its right to exchange the Exchangeable Stock
pursuant to Section 5.10 of the Purchase Agreement. For purposes hereof, the
"Exchangeable Stock" shall consist of the 1,250 common shares, par value $1.00
per share, of Pride Amethyst II Ltd. ("Amethyst II") distributed to First
Reserve VIII and First Reserve VII (or to another member of First Reserve Group)
pursuant to the Master

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Restructuring Agreement, dated as of March 9, 2001, among the Company,
Drillpetro Inc. ("Drillpetro"), Techdrill Inc. ("Techdrill"), Westville
Management Corporation, First Reserve VII, First Reserve VIII, Maritima Petroleo
e Engenharia Ltda., Amethyst Financial Company Limited and Amethyst II.

         "Demand Registration" means a demand registration as defined in Section
5.2(a) hereof.

         "Existing Holders" means the holders of registrable securities in
accordance with the terms of the Existing Registration Rights Agreements.

         "Existing Registration Rights Agreements" means that certain (i)
Registration Rights Agreement, dated as of March 9, 2001, by and among the
Company, Drillpetro and Techdrill and (ii) Registration Rights Agreement, dated
as of March 4, 2002, by and between the Company and Deutsche Banc Alex. Brown
Inc.

         "Holders" means the holders of the Registrable Securities in accordance
with the terms of this Registration Rights Agreement.

         "Indemnified Party" has the meaning set forth in Section 5.3(c).

         "Indemnifying Party" has the meaning set forth in Section 5.3(c).

         "Piggyback Registration" means a piggyback registration as defined in
Section 5.2(b) hereof.

         "Prospectus" means the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by such
Registration Statement and all other amendments and supplements to the
prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such prospectus.

         "Registrable Securities" means (a) all shares of Common Stock issued to
First Reserve pursuant to the Purchase Agreements including all shares of Common
Stock which may be issued upon exchange of the Exchangeable Stock or otherwise
pursuant to the Amethyst Agreements, (b) all shares acquired by the First
Reserve Group in the open market prior to the date hereof, (c) all shares of
Common Stock purchased by the First Reserve Group in connection with the Notes
Offering, (d) all shares hereafter acquired by the First Reserve Group, and (e)
any other securities issued by the Company after the date hereof with respect to
such shares of Common Stock by means of exchange, reclassification, dividend,
distribution, split up, combination, subdivision, recapitalization, merger,
spin-off, reorganization or otherwise; provided, however, that as to any
Registrable Securities, such securities shall cease to constitute Registrable
Securities for the purposes of this Registration Rights Agreement if and when:
(i) a Registration Statement with respect to the sale of such securities shall
have been declared

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effective by the SEC and such securities shall have been sold pursuant thereto;
(ii) such securities shall have been sold in compliance with of all applicable
resale provisions of Rule 144 under the Securities Act; (iii) such securities
may be sold by the Holder thereof in reliance upon Rule 144(k) (or any successor
rule) promulgated under the Securities Act, or (iv) such securities cease to be
issued and outstanding for any reason.

         "Registration Statement" means any registration statement filed by the
Company that covers any of the Registrable Securities pursuant to the provisions
of this Registration Rights Agreement, including the Prospectus included
therein, amendments and supplements to such registration statement, including
post-effective amendments, all exhibits, and all material incorporated by
reference or deemed to be incorporated by reference in such registration
statement.

         "SEC" means the Securities and Exchange Commission, or any successor
agency thereto.

         "Securities Act" means the Securities Act of 1933, as amended.

         Section 5.2.   Registration Rights

                  (a) Demand Registration. (i) At any time after September 4,
2002, First Reserve may at any time and from time to time make a written request
for registration under the Securities Act in a firm commitment underwritten
public offering of Registrable Securities owned by them having a good faith
estimated public offering price of at least $20 million (a "Demand
Registration"); provided that the Company shall not be obligated to effect more
than three Demand Registrations in any 12-month period or more than an aggregate
of four Demand Registrations pursuant to this Section 5.2(a). Such request will
specify the number of shares of Registrable Securities proposed to be sold.
Within five days of such request, the Company shall give written notice of such
request to all other Holders of Registrable Securities and shall include in the
registration in respect of which notice has been given all Registrable
Securities with respect to which the Company has received written requests from
Holders for inclusion therein within ten days after the Company's notice
regarding such registration has been given as provided herein. If Registrable
Securities of other Holders are included in such registration, the Holder or
Holders requesting such Demand Registration may reduce the number of shares of
Registrable Securities initially specified to be included in such registration
in its or their sole discretion; provided, that Registrable Securities having a
good faith estimated public offering price of at least $20 million are included
in such registration. A registration will not count as a Demand Registration
until the Registration Statement filed pursuant to such registration has been
declared effective by the SEC and remains effective for the period specified in
Section 5.2(d)(i).

                           (ii) The Holder or Holders requesting the Demand
Registration shall select the managing underwriters (including the book running
lead managing underwriters) and any additional investment bankers and managers
to be used in connection with the offering (unless a member of the First Reserve
Group is included among the Holders selling pursuant to such registration, in
which case First Reserve shall select such underwriters, investment bankers and
managers); provided that the lead managing underwriter must be reasonably
satisfactory to the Company.

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                           (iii) Neither the Company nor any of its security
holders (other than the Holders of Registrable Securities in such capacity)
shall be entitled to include any of the Company's securities in a Registration
Statement initiated as a Demand Registration under this Section 5.2(a) without
the consent of First Reserve.

                           (iv) In addition to the Demand Registration rights
enumerated above, with respect to the Amethyst Registrable Securities at any
time after (X) July 1, 2002 or (Y) such earlier date which is 60 days prior to
the date on which the Exchangeable Stock shall have been exchanged for Common
Stock pursuant to Section 5.10 or 5.11 of the Purchase Agreement, First Reserve
may make a request in writing that the Company file a registration statement
under the Securities Act to register under the Securities Act all Amethyst
Registrable Securities (whether or not such Amethyst Registrable Securities are
then issued and outstanding) for resale on a delayed or continuous basis for a
period of one year in an amount equal to the lesser of (A) all such Amethyst
Registrable Securities, or (B) the number of Amethyst Registrable Securities
that could be sold pursuant to the provisions of Rule 144 by an affiliate of the
Company (assuming such Amethyst Registrable Securities were not restricted
securities within the meaning of Rule 144) during such one-year period. Such a
request (and the related registration) shall be in addition to the Demand
Registrations provided for in Section 5.2(a)(i) of this Agreement.

                  (b) Piggyback Registration. If the Company proposes to file a
registration statement under the Securities Act with respect to an offering of
Common Stock (i) for the Company's own account (other than a registration
statement on Form S-4 or S-8 (or any substitute form that may be adopted by the
SEC for transactions traditionally registered on Form S-4 or S-8)) or (ii) for
the account of any of its holders of Common Stock, including without limitation,
the Existing Holders (other than pursuant to a Demand Registration under Section
5.2(a)), then the Company shall give written notice of such proposed filing to
First Reserve as soon as practicable (but in no event later than the earlier to
occur of (i) the tenth day following receipt by the Company of notice of
exercise of other demand registration rights and (ii) 15 days before the filing
date), and such notice shall offer First Reserve the opportunity to register
such number of shares of Registrable Securities as First Reserve may request
within 10 days after receipt by First Reserve of the Company's notice on the
same terms and conditions as the Company's or such holder's Common Stock (a
"Piggyback Registration"). First Reserve will be permitted to withdraw all or
any part of its Registrable Securities from a Piggyback Registration at any time
prior to the date the Registration Statement filed pursuant to such Piggyback
Registration becomes effective with the SEC.

                  (c) Reduction of Offering. Notwithstanding anything contained
herein, if the Piggyback Registration is an underwritten offering and the lead
managing underwriter of such offering delivers a written opinion to the Company
that the size of the offering that the Company, First Reserve, the Existing
Holders and any other Persons whose securities are proposed to be included in
such offering is such that the offering or the offering price would be
materially and adversely affected, the Company will include in such Piggyback
Registration in the following order of priority (i) first, all of the securities
proposed to be registered by the Company (if the offering is for the account of
the Company), or, if the offering is for the account of the Existing Holders (or
any of them), all of the securities proposed to be registered by such

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Existing Holders, (ii) second, all of the Registrable Securities requested by
First Reserve, and (iii) thereafter, the securities proposed to be registered by
any other Persons.

                  (d) Filings; Information. Whenever First Reserve requests that
any Registrable Securities be registered pursuant to Section 5.2(a) hereof, the
Company will use its reasonable best efforts to effect the registration of such
Registrable Securities and to permit the sale of such Registrable Securities in
accordance with the intended method of disposition thereof, as promptly as is
practicable, and in connection with any such request:

                           (i) the Company will as expeditiously as possible,
but in no event later than 30 days after receipt of a request to file a
registration statement with respect to such Registrable Securities, prepare and
file with the SEC a Registration Statement on any form for which the Company
then qualifies and which counsel for the Company shall deem appropriate and
available for the sale of the Registrable Securities to be registered thereunder
in accordance with the intended method of distribution thereof and which is
reasonably satisfactory to First Reserve, and use its reasonable best efforts to
cause such Registration Statement to become and remain effective for a period of
not less than 90 days (or such shorter period which will terminate when all
Registrable Securities covered by such Registration Statement have been sold);
provided that if at the time the Company receives a request to file a
Registration Statement with respect to Registrable Securities or thereafter, the
Company is engaged in confidential negotiations or other confidential business
activities, disclosure of which would be required in such Registration Statement
or a related prospectus or supplement thereto (but would not be required if such
Registration Statement were not filed) and the board of directors of the Company
determines in good faith that such disclosure would be materially detrimental to
the Company and its stockholders, the Company shall have a period of not more
than 120 days (less the number of days during the previous 12 months that the
use of a Prospectus was suspended pursuant to Section 5.2(d)(vi) and/or this
Section 5.2(d)(i)) within which to file such registration statement measured
from the date of the Company's receipt of First Reserve's request for
registration in accordance with Section 5.2(a) hereof or to file any supplement
required by Section 5.2(d)(vi). The filing of a registration statement may only
be deferred once for any potential transaction or event or related transactions
or events that could arise as a result of negotiations or other activities and
any registration statement whose filing has been deferred as a result shall be
filed forthwith if the negotiations or other activities are disclosed or
terminated. In order to defer the filing of a registration statement pursuant to
this Section 5.2(d)(i), the Company shall promptly, upon determining to seek
such deferral, deliver to First Reserve a certificate signed by the President or
Chief Financial Officer of the Company stating that the Company is deferring
such filing pursuant to this Section 5.2(d)(i).

                           (ii) the Company will prepare and file with the SEC
such amendments and supplements to such Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep such
Registration Statement effective for the period set forth in Section 5.2(d)(i)
and comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such Registration Statement during such
period in accordance with the intended methods of disposition by the sellers
thereof set forth in such Registration Statement.

                                       12
<PAGE>

                           (iii) the Company will, if requested, prior to filing
a Registration Statement or any amendment or supplement thereto, furnish to
First Reserve and each applicable managing underwriter, if any, copies thereof,
and thereafter furnish to First Reserve and each such underwriter, if any, such
number of copies of such Registration Statement, amendment and supplement
thereto (in each case including all exhibits thereto and documents incorporated
by reference therein) and the Prospectus included in such Registration Statement
(including each preliminary Prospectus) as First Reserve or each such
underwriter may reasonably request in order to facilitate the sale of the
Registrable Securities.

                           (iv) After the filing of the Registration Statement,
the Company will promptly notify First Reserve of any stop order issued or, to
the Company's knowledge, threatened to be issued by the SEC and take all
reasonable actions required to prevent the entry of such stop order or to remove
it as soon as possible if entered.

                           (v) the Company will use its reasonable best efforts
to qualify the Registrable Securities for offer and sale under such other
securities or blue sky laws of such jurisdictions in the United States as First
Reserve reasonably requests; provided that the Company will not be required to
(A) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this subparagraph 5.2(d)(v), (B)
subject itself to taxation in any such jurisdiction or (C) consent to general
service of process in any such jurisdiction.

                           (vi) the Company will as promptly as is practicable
notify First Reserve, at any time when a Prospectus is required by law to be
delivered in connection with sales by an underwriter or dealer, of the
occurrence of any event requiring the preparation of a supplement or amendment
to such Prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such Prospectus will not contain an untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading and promptly make available to First
Reserve and to the underwriters any such supplement or amendment. First Reserve
agrees that, upon receipt of any notice from the Company of the occurrence of
any event of the kind described in the preceding sentence, First Reserve will
forthwith discontinue the offer and sale of Registrable Securities pursuant to
the Registration Statement covering such Registrable Securities until receipt by
First Reserve and the underwriters of the copies of such supplemented or amended
Prospectus and, if so directed by the Company, First Reserve will deliver to the
Company all copies, other than permanent file copies, then in First Reserve's
possession of the most recent Prospectus covering such Registrable Securities at
the time of receipt of such notice. In the event the Company shall give such
notice, the Company shall extend the period during which such Registration
Statement shall be maintained effective as provided in Section 5.2(d)(i) by the
number of days during the period from and including the date of the giving of
such notice to the date when the Company shall make available to First Reserve
such supplemented or amended Prospectus.

                           (vii) the Company will enter into customary
agreements (including an underwriting agreement in customary form) and take such
other actions as are reasonably required in order to expedite or facilitate the
sale of such Registrable Securities.

                                       13
<PAGE>

                           (viii) the Company will furnish to First Reserve and
to each underwriter a signed counterpart, addressed to such underwriter, of an
opinion or opinions of counsel to the Company and a comfort letter or comfort
letters from the Company's independent public accountants, each in customary
form and covering such matters of the type customarily covered by opinions or
comfort letters, as the case may be, as the managing underwriter reasonably
requests.

                           (ix) the Company will make generally available to its
security holders, as soon as reasonably practicable, an earnings statement
covering a period of 12 months, beginning within three months after the
effective date of the Registration Statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and the rules and
regulations of the SEC thereunder.

                           (x) the Company will use its reasonable best efforts
to cause all such Registrable Securities to be listed on each securities
exchange or market on which the Common Stock is then listed.

         The Company may require First Reserve to furnish promptly in writing to
the Company such information regarding First Reserve, the plan of distribution
of the Registrable Securities and other information as the Company may from time
to time reasonably request or as may be legally required in connection with such
registration.

                  (e) Registration Expenses. In connection with any Demand
Registration or any Piggyback Registration, the Company shall pay the following
expenses incurred in connection with such registration: (i) filing fees with the
SEC; (ii) fees and expenses of compliance with securities or blue sky laws
(including reasonable fees and disbursements of counsel in connection with blue
sky qualifications of the Registrable Securities); (iii) printing expenses; (iv)
fees and expenses incurred in connection with the listing of the Registrable
Securities; (v) fees and expenses of counsel and independent certified public
accountants for the Company and (vi) the reasonable fees and expenses of any
additional experts retained by the Company in connection with such registration.
In connection with the preparation and filing of a Registration Statement
pursuant to Section 5.2(a), the Company will also pay the reasonable fees and
expenses of a single legal counsel chosen by First Reserve. First Reserve shall
pay any underwriting fees, discounts or commissions attributable to the sale of
Registrable Securities and any other expenses of First Reserve.

                  (f) Participation in Underwritten Registrations. No Person may
participate in any underwritten registered offering contemplated hereunder
unless such Person (a) agrees to sell its securities on the basis provided in
any underwriting arrangements approved by the Persons entitled hereunder to
approve such arrangements and (b) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements and this
Registration Rights Agreement.

                                       14
<PAGE>

                  (g) Holdback Agreements. First Reserve agrees not to effect
any public sale (including a sale pursuant to Rule 144 of the Securities Act) of
any Registrable Securities, or any securities convertible into or exchangeable
or exercisable for such securities, during the 14 days prior to, and during the
120-day period beginning on, the effective date of any underwritten Demand
Registration or any underwritten Piggyback Registration in which First Reserve
participates, other than the Registrable Securities to be sold pursuant to such
registration statement.

         Section 5.3.   Indemnification

                  (a) Indemnification by the Company. The Company agrees to
indemnify and hold harmless First Reserve, its general partner, the general
partner of the general partner, and the officers and directors of such general
partner, and each Person, if any, who controls First Reserve within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act
from and against any and all losses, claims, damages, liabilities and expenses
arising out or based upon any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement or prospectus relating to
the Registrable Securities or any preliminary Prospectus, or arising out of or
based upon any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, except insofar as such losses, claims, damages, liabilities and
expenses are caused by any untrue statement or omission or alleged untrue
statement or omission based upon information relating to First Reserve or the
plan of distribution furnished in writing to the Company by or on behalf of
First Reserve expressly for use therein; provided, that the foregoing indemnity
with respect to any preliminary Prospectus shall not inure to the benefit of
First Reserve if a copy of the most current Prospectus at the time of the
delivery of the Registrable Securities was not provided to the purchaser, the
Company had previously furnished First Reserve with a sufficient number of
copies of the current Prospectus and such current Prospectus would have cured
the defect giving rise to such loss, claim, damage or liability. The Company
also agrees to indemnify any underwriters of the Registrable Securities, their
officers and directors and each Person who controls such underwriters on
substantially the same basis as that of the indemnification of First Reserve
provided in this Section 5.3(a).

                  (b) Indemnification by First Reserve. First Reserve agrees to
indemnify and hold harmless the Company, its officers and directors, and each
Person, if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act to the same extent as
the foregoing indemnity from the Company to First Reserve, but only with
reference to information relating to First Reserve or the plan of distribution
furnished in writing by or on behalf of First Reserve expressly for use in any
Registration Statement or Prospectus, or any amendment or supplement thereto, or
any preliminary Prospectus. First Reserve also agrees to indemnify and hold
harmless any underwriters of the Registrable Securities, their officers and
directors and each person who controls such underwriters on substantially the
same basis as that of the indemnification of the Company provided in this
Section 5.3(b).

                  (c) Conduct of Indemnification Proceedings. In case any
proceeding (including any governmental investigation) shall be instituted
involving any Person in respect of which

                                       15
<PAGE>

indemnity may be sought pursuant to Section 5.3(a) or Section 5.3(b), such
Person (the "Indemnified Party") shall promptly notify the Person against whom
such indemnity may be sought (the "Indemnifying Party") in writing and the
Indemnifying Party shall have the right to assume the defense of such proceeding
and retain counsel reasonably satisfactory to such Indemnified Party to
represent such Indemnified Party and any others the Indemnifying Party may
designate in such proceeding and shall pay the fees and disbursements of such
counsel related to such proceeding. In any such proceeding, any Indemnified
Party shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party unless (i) the
Indemnifying Party and the Indemnified Party shall have mutually agreed to the
retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include both the Indemnified Party and the
Indemnifying Party and representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between them. It
is understood that the Indemnifying Party shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm of attorneys (in addition to
any local counsel) at any time for all such Indemnified Parties, and that all
such fees and expenses shall be reimbursed as they are incurred. In the case of
any such separate firm for the Indemnified Parties, such firm shall be
designated in writing by the Indemnified Parties. The Indemnifying Party shall
not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent, or if there be a final judgment for
the plaintiff, the Indemnifying Party shall indemnify and hold harmless such
Indemnified Parties from and against any loss or liability (to the extent stated
above) by reason of such settlement or judgment.

                  (d) Contribution. If the indemnification provided for in this
Registration Rights Agreement is unavailable to an Indemnified Party in respect
of any losses, claims, damages, liabilities or expenses referred to herein, then
each such Indemnifying Party, in lieu of indemnifying such Indemnified Party,
shall contribute to the amount paid or payable by such Indemnified Party as a
result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the Company and
First Reserve and the underwriters in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities. The
relative fault of the Company and, First Reserve and the underwriters shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by such party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

                  The Company and First Reserve agree that it would not be just
and equitable if contribution pursuant to this Section 5.3(d) were determined by
pro rata allocation or by any other method of allocation that does not take
account of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the
losses, claims, damages or liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such Indemnified Party
in connection with investigating or defending any such action or claim. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

                                       16
<PAGE>

         Section 5.4. Rule 144. The Company covenants that it will file any
reports required to be filed by it under the Securities Act and the Exchange Act
and that it will take such further action as First Reserve may reasonably
request to the extent required from time to time to enable First Reserve to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144 under the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC. Upon the request of First Reserve, the Company
will deliver to First Reserve a written statement as to whether it has complied
with such reporting requirements.

         Section 5.5.   Miscellaneous.

                  (a) Notices. Any notice or other communication required or
permitted under this Registration Rights Agreement shall be in writing or by
telex, telephone or facsimile transmission with subsequent written confirmation,
and may be personally served or sent by United States mail and shall be deemed
to have been given upon receipt by the party notified. For purposes hereof, the
addresses of the parties hereto (until notice of a change thereof is delivered
as provided in this Section 5.5) shall be as set forth opposite each party's
name on the signature page hereof.

                  (b) Termination. This Registration Rights Agreement will
terminate upon the earlier of (i) the date upon which the Company and First
Reserve mutually agree in writing to terminate this Registration Rights
Agreement and (ii) the first date on which there ceases to be any Registrable
Securities.

                  (c) Transfer of Registration Rights. The rights of Holders
hereunder may be assigned by Holders to a transferee or assignee of any
Registrable Securities provided that the Company is given written notice at the
time of or within a reasonable time after said transfer, stating the name and
address of such transferee or assignee and identifying the securities with
respect to which such registration rights are being assigned; and provided
further that the registration rights granted by the Company in Section 5.2 may
only be transferred to, and the definition of "Holders" shall only include,
transferees who meet either of the following criteria: such transferee is (i) a
holder of 100,000 or more shares of the Registrable Securities before giving
effect to the transfer, (ii) a member of the First Reserve Group, or (iii) a
bank, trust company or other financial institution, any pension plan, any
investment company, any insurance company, any broker or dealer, or any other
similar financial institution or entity, regardless of legal form. To the extent
the rights under Section 5.2(a) of this Agreement are assigned to multiple
Holders, all rights hereunder that may be exercised by the First Reserve Group
may only be exercised by one or more Holders holding 50% or more of the
Registrable Securities in the aggregate.

                  (d) Waivers and Amendments; Noncontractual Remedies;
Preservation of Remedies. This Registration Rights Agreement may be amended,
superseded, canceled, renewed or extended, and the terms hereof may be waived,
only by a written instrument signed by the Company and the Holders of a majority
of the Registrable Securities or, in the case of a waiver, by the party waiving
compliance. No delay on the part of any party in exercising a right,

                                       17
<PAGE>

power or privilege hereunder shall operate as a waiver thereof, nor shall any
waiver on the part of any party of any such right, power or privilege, nor any
single or partial exercise of any such right, power or privilege, preclude a
further exercise thereof or the exercise of any other such right, power or
privilege. The rights and remedies herein provided are cumulative and are not
exclusive of any rights or remedies that any party may otherwise have at law or
in equity. The rights and remedies of any party based upon, arising out of or
otherwise in respect of any breach of any provision of this Registration Rights
Agreement shall in no way be limited by the fact that the act, omission,
occurrence or other state of facts upon which any claim of any such breach is
based may also be the subject matter of any other provision of this Registration
Rights Agreement (or of any other agreement between the parties) as to which
there is no breach.

                  (e) Severability. If any provision of this Registration Rights
Agreement or the applicability of any such provision to a person or
circumstances shall be determined by any court of competent jurisdiction to be
invalid or unenforceable to any extent, the remainder of this Registration
Rights Agreement or the application of such provision to Persons or
circumstances other than those for which it is so determined to be invalid and
unenforceable, shall not be affected thereby, and each provision of this
Registration Rights Agreement shall be valid and shall be enforced to the
fullest extent permitted by law. To the extent permitted by applicable law each
party hereto hereby waives any provision or provisions of law which would
otherwise render any provision of this Registration Rights Agreement invalid,
illegal or unenforceable in any respect.

                  (f) Successors and Assigns. Subject to Section 5.5(c), this
Registration Rights Agreement shall be binding upon and inure to the benefit of
and be enforceable by the successors and assigns of the parties hereto.

                  (g) Other Registration Rights Agreements. Without the prior
written consent of First Reserve, the Company will neither enter into any new
registration rights agreements that conflict with the terms of this Registration
Rights Agreement nor permit the exercise of any other registration rights in a
manner that conflicts with the terms of the registration rights granted
hereunder.

                                    ARTICLE 6
                                  MISCELLANEOUS

         Section 6.1 Termination. Except as provided in Section 5.5(b) as to the
Registration Rights Agreement (which shall be governed by such Section 5.5(b))
and this Section 6.1, the respective covenants and agreements of First Reserve
and the Company contained in this Agreement will continue in full force and
effect until the earliest to occur of either of the following: (i) the
Termination Date, or (ii) the sale or other disposition in accordance with this
Agreement by the First Reserve Group of Company Securities if after and giving
effect to such sale or other disposition, the First Reserve Group beneficially
owns in the aggregate Company Securities representing less than 5% of the Voting
Power (including all exchangeable and convertible Company Securities on an
"as-if" exchanged or converted basis). Upon any termination of this Agreement
pursuant to this Section 6.1, all of the obligations of the Company and First
Reserve hereunder (other than the Registration Rights Agreement) shall
terminate.

                                       18
<PAGE>

         Section 6.2 Notices. Any notice or other communication required or
permitted hereunder shall be in writing or by telex, telephone or facsimile
transmission with subsequent written confirmation, and may be personally served
or sent by United States mail and shall be deemed to have been given upon
receipt by the party notified. For purposes hereof, the addresses of the parties
hereto (until notice of a change thereof is delivered as provided in this
Section 6.2) shall be as set forth opposite each party's name on the signature
page hereof.

         Section 6.3 Waivers and Amendments; Noncontractual Remedies;
Preservation of Remedies. Other than with respect to the provisions of the
Registration Rights Agreement, which shall be governed by Section 5.5(d), this
Agreement may be amended, superseded, canceled, renewed or extended, and the
terms hereof may be waived, only by a written instrument signed by the Company
and the holders of a majority of the Company Securities held by the First
Reserve Group or, in the case of a waiver, by the party waiving compliance. No
delay on the part of any party in exercising a right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any waiver on the part of
any party of any such right, power or privilege, nor any single or partial
exercise of any such right, power or privilege, preclude a further exercise
thereof or the exercise of any other such right, power or privilege. The rights
and remedies herein provided are cumulative and are not exclusive of any rights
or remedies that any party may otherwise have at law or in equity. The rights
and remedies of any party based upon, arising out of or otherwise in respect of
any breach of any provision of this Agreement (other than the Registration
Rights Agreement, which shall be governed by Section 5.5(d)) shall in no way be
limited by the fact that the act, omission, occurrence or other state of facts
upon which any claim of any such breach is based may also be the subject matter
of any other provision of this Agreement (or of any other agreement between the
parties) as to which there is no breach.

         Section 6.4 Severability. If any provision of this Agreement or the
applicability of any such provision to a person or circumstances shall be
determined by any court of competent jurisdiction to be invalid or unenforceable
to any extent, the remainder of this Agreement or the application of such
provision to persons or circumstances other than those for which it is so
determined to be invalid and unenforceable, shall not be affected thereby, and
each provision of this Agreement shall be valid and shall be enforced to the
fullest extent permitted by law. To the extent permitted by applicable law each
party hereto hereby waives any provision or provisions of law which would
otherwise render any provision of this Agreement invalid, illegal or
unenforceable in any respect.

         Section 6.5 Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts and when so executed shall constitute one
Agreement, notwithstanding that all parties are not signatories to the same
counterpart.

         Section 6.6 Governing Law. This Agreement shall be governed and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be performed entirely within such state, without giving
effect to the conflict of laws principles of such state that would apply the
substantive law of any other state.

                                       19
<PAGE>

         Section 6.7 Successors and Assigns. Subject to the transfer
restrictions contained in this Agreement, this Agreement shall be binding upon
and inure to the benefit of and be enforceable by the successors and assigns of
the parties hereto.

           [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

                                       20
<PAGE>

IN WITNESS WHEREOF, this Agreement has been executed as of the date first above
written.

Address:                               PRIDE INTERNATIONAL, INC.

5847 San Felipe Road, Suite 3300       By: /s/ Paul A. Bragg
Houston, Texas 77057                      --------------------------------------
Attn: Mr. Paul A. Bragg                    Paul A. Bragg
Fax: 713-789-1430                          President and Chief Executive Officer

     [SIGNATURE PAGE TO SECOND AMENDED AND RESTATED SHAREHOLDERS AGREEMENT]

<PAGE>

Address:                             FIRST RESERVE FUND VII, LIMITED
600 Travis, Suite 6000               PARTNERSHIP
Houston, Texas 77002
Attn: Ben A. Guill
Fax: 713-224-0771                    By:  First Reserve GP VII, L.P., its
                                          General Partner
                                            By:  First Reserve Corporation, its
                                                 General Partner

                                                 By:  /s/  Thomas R. Denison
                                                    ----------------------------
                                                    Thomas R. Denison
                                                    Managing Director

Address:                             FIRST RESERVE FUND VIII, L.P.
600 Travis, Suite 6000
Houston, Texas 77002
Attn: Ben A. Guill                   By:  First Reserve GP VII, L.P., its
Fax: 713-224-0771                         General Partner
                                            By:  First Reserve Corporation, its
                                                 General Partner

                                                 By:  /s/  Thomas R. Denison
                                                    ----------------------------
                                                    Thomas R. Denison
                                                    Managing Director

Address:                             FIRST RESERVE FUND IX, L.P.
600 Travis, Suite 6000
Houston, Texas 77002
Attn: Ben A. Guill                   By:  First Reserve GP IX, L.P., its
Fax: 713-224-0771                         General Partner
                                            By:  First Reserve GP IX, Inc.,
                                                 its General Partner

                                                 By:  /s/ Thomas R. Denison
                                                    ----------------------------
                                                    Thomas R. Denison
                                                    Managing Director

     [SIGNATURE PAGE TO SECOND AMENDED AND RESTATED SHAREHOLDERS AGREEMENT]<PAGE>
                                                                   EXHIBIT 10.31

                            PRIDE INTERNATIONAL, INC.

                           EMPLOYMENT/NON-COMPETITION/
                            CONFIDENTIALITY AGREEMENT

                                JOHN C.G. O'LEARY

                           EFFECTIVE FEBRUARY 5, 1999

<PAGE>
                                      INDEX

<Table>
<Caption>
<S>      <C>                                                                          <C>
I.       PRIOR AGREEMENTS/EMPLOYMENT CONTRACTS ......................................  4

1.01     Effect of Prior Agreements .................................................  4

II.      DEFINITION OF TERMS ........................................................  4

2.01     Company ....................................................................  4
2.02     Executive/Officer/Employee .................................................  4
2.03     Office/Position/Title ......................................................  4
2.04     Effective Date .............................................................  4
2.05     Change in Control ..........................................................  5
2.06     Termination ................................................................  5
2.07     Customer ...................................................................  7

III.     EMPLOYMENT .................................................................  7

3.01     Employment .................................................................  7
3.02     Best Efforts And Other Employment Of Executive .............................  8
3.03     Term Of Employment .........................................................  8
3.04     Compensation And Benefits ..................................................  9
3.05     Termination Without Change In Control ...................................... 10

IV.      CHANGE IN CONTROL .......................................................... 12

4.01     Extension Of Employment Period ............................................. 12
4.02     Change In Control Termination Payments & Benefits .......................... 13
4.03     Voluntary Resignation Upon Change In Control ............................... 13

V.       NON-COMPETITION AND CONFIDENTIALITY ........................................ 13

5.01     Consideration .............................................................. 13
5.02     Non-Competition ............................................................ 14
5.03     Confidentiality ............................................................ 15
5.04     Geographical Area .......................................................... 16
5.05     Company Remedies For Violation Of Non-Competition Or
             Confidentiality Agreement .............................................. 16
5.06     Termination Of Benefits For Violation Of Non-Competition And
             Confidentiality ........................................................ 17

VI.      GENERAL .................................................................... 17

6.01     Enforcement Costs .......................................................... 17
6.02     Income, Excise Or Other Tax Liability ...................................... 18
6.03     Payment Of Benefits Upon Termination For Cause ............................. 19
6.04     Non-Exclusive Agreement .................................................... 19
</Table>
<PAGE>
<Table>
<Caption>
<S>      <C>                                                                          <C>
6.05     Notices .................................................................... 19
6.06     Non-Alienation ............................................................. 19
6.07     Entire Agreement: Amendment ................................................ 20
6.08     Successors And Assigns ..................................................... 20
6.09     Governing Law .............................................................. 20
6.10     Venue ...................................................................... 20
6.11     Headings ................................................................... 20
6.12     Severability ............................................................... 20
6.13     Partial Invalidity ......................................................... 20
6.14     Counterparts ............................................................... 21
</Table>

<PAGE>
                   EMPLOYMENT/NON-COMPETITION/CONFIDENTIALITY
                                   AGREEMENT

DATE:                      February 5, 1999

COMPANY/EMPLOYER:          Pride International, Inc., A Louisiana corporation
                           5847 San Felipe, Suite 3300 Houston, Texas 77057

EXECUTIVE/EMPLOYEE:        John C.G. O'Leary
                           755 Marchmont
                           Houston, Texas 77024

         This Agreement is made as of the date first above written and to become
effective as herein provided.

                                    PREAMBLE

         WHEREAS, the Company wishes to attract and retain well-qualified
Executive and key personnel and to assure itself of the continuity of its
management;

         WHEREAS, Executive is an officer of the Company with significant
management responsibilities in the conduct of its business;

         WHEREAS, the Company recognizes that Executive is a valuable resource
of the Company and the Company desires to be assured of the continued services
of Executive;

         WHEREAS, the Company desires to obtain assurances that Executive will
devote his best efforts to his employment with the Company and will not enter
into competition with the Company in its business as now conducted and to be
conducted, or solicit customers or other employees of the Company to terminate
their relationships with the Company;

         WHEREAS, Executive is a key employee of the Company and he acknowledges
that his talents and services to the Company are of a special, unique, unusual
and extraordinary character and are of particular and peculiar benefit and
importance to the Company;

                                  Page 4 of 23
<PAGE>
         WHEREAS, the Company is concerned that in the event of a possible or
threatened change in control of the Company, uncertainties necessarily arise;
Executive may have concerns about the continuation of his employment status and
responsibilities and may be approached by others offering competing employment
opportunities; the Company, therefore, desires to provide Executive assurances
as to the continuation of his employment status and responsibilities in such
event;

         WHEREAS, the Company further desires to assure Executive that, if a
possible or threatened change in control should arise and Executive should be
involved in deliberations or negotiations in connection therewith, Executive
would be in a secure position to consider and participate in such transaction as
objectively as possible in the best interests of the Company and to this end
desires to protect Executive from any direct or implied threat to his financial
well-being;

         WHEREAS, Executive is willing to continue to serve as such but desires
assurances that in the event of such a change in control he will continue to
have the employment status and responsibilities he could reasonably expect
absent such event and, that in the event this turns out not to be the case, he
will have fair and reasonable severance protection on the basis of his service
to the Company to that time;

         WHEREAS, different factors affect the Company and Executive under
circumstances of regular employment between the Company and the Executive when
there is no threat of change in control and/or none has occurred, as opposed to
circumstances under which a change in control is rumored, threatened, occurring
or has occurred. For this reason this Employment Agreement is primarily in two
parts. One part deals with the regular employment of Executive under
circumstances whereby no change in control is threatened, occurring or occurred;
herein called "Regular Employment". The second part deals with circumstances
whereby a change in control is threatened, occurring or has occurred. Other
parts of the Agreement deal with matters affecting both Regular Employment and
employment following change in control, including non-competition and
confidentiality;

         WHEREAS, the Company has previously entered into a Severance Agreement
with Executive dated March 11, 1997 ("Severance Agreement");

         WHEREAS, the Company and Executive desire to terminate the Severance
Agreement and replace it with this Agreement; and

         WHEREAS, Executive is willing to enter into and carry out the
Non-Competition and Confidentiality Agreement set forth herein in consideration
of the Employment Agreement set forth herein.

                                  Page 5 of 23

<PAGE>
                                    AGREEMENT

         NOW, THEREFORE, the parties agree as follows:

I.       PRIOR AGREEMENTS/EMPLOYMENT CONTRACTS.

1.01     EFFECT OF PRIOR AGREEMENTS. On and as of 12:00 o'clock noon of the
         Effective Date all prior employment and non-competition contracts
         between Company and Executive are hereby amended, modified and
         superseded by this Agreement insofar as future employment,
         compensation, non-competition, confidentiality, accrual of payments or
         any form of compensation or benefits from the Company are concerned.
         This Agreement does not release or relieve Company from its liability
         or obligation with respect to any compensation, payments, or benefits
         already accrued to Executive, nor to any vesting of benefits or other
         rights which are attributable to length of employment, seniority or
         other such matters. This Agreement does not relieve Executive of any
         prior non-competition or confidentiality obligations and agreements and
         the same are hereby modified and amended as to future matters and
         future confidentiality even as to matters accruing prior to the
         Effective Date hereof. The Severance Agreement is hereby terminated
         with no liability to the Company.

II.      DEFINITION OF TERMS.

2.01     COMPANY. Company means Pride International, Inc., a Louisiana
         corporation, as the same presently exists, as well as any and all
         successors, regardless of the nature of the entity or the State or
         Nation of organization, whether by reorganization, merger,
         consolidation, absorption or dissolution. For the purpose of the
         Non-Competition and Confidentiality Agreement, Company includes any
         subsidiary or affiliate of the Company to the extent it is carrying on
         any portion of the business of the Company or a business similar to
         that being conducted by the Company.

2.02     EXECUTIVE/OFFICER/EMPLOYEE. Executive/Officer/Employee means John C.G.
         O'Leary.

2.03     OFFICE/POSITION/TITLE. The Office, Position and Title for which the
         Executive is employed is that of Vice President - Worldwide Marketing
         of the Company and carries with it the duties, responsibilities,
         rights, benefits and privileges presently held by the Executive, or as
         may reasonably be assigned to the Executive as are customary and usual
         for such position.

2.04     EFFECTIVE DATE.  This Agreement becomes effective and binding as of
         February 5, 1999.

                                  Page 6 of 23

<PAGE>
2.05     CHANGE IN CONTROL. The term "Change in Control" of the Company shall
         mean, and shall be deemed to have occurred on the date of the first to
         occur of any of the following:

         a.   there occurs a Change in Control of the Company of the nature that
              would be required to be reported in response to item 6(e) of
              Schedule 14A of Regulation 14A or Item 1 of Form 8(k) promulgated
              under the Securities Exchange Act of 1934 as in effect on the date
              of this Agreement, or if neither item remains in effect, any
              regulations issued by the Securities and Exchange Commission
              pursuant to the Securities Exchange Act of 1934 which serve
              similar purposes;

         b.   any "person" {as such term is used in Sections 13(d) and 14(d)(2)
              of the Securities Exchange Act of 1934} is or becomes a beneficial
              owner, directly or indirectly, of securities of the Company
              representing twenty percent (20%) or more of the combined voting
              power of the Company's then outstanding securities;

         c.   the individuals who were members of the Board of Directors of the
              Company immediately prior to a meeting of the shareholders of the
              Company involving a contest for the election of Directors shall
              not constitute a majority of the Board of Directors following such
              election;

         d.   the Company shall have merged into or consolidated with another
              corporation, or merged another corporation into the Company, on a
              basis whereby less than fifty percent (50%) of the total voting
              power of the surviving corporation is represented by shares held
              by former shareholders of the Company prior to such merger or
              consolidation; or

         e.   the Company shall have sold, transferred or exchanged all, or
              substantially all, of its assets to another corporation or other
              entity or person.

2.06     TERMINATION. The term "termination" shall mean termination, prior to
         the expiration of the Employment Period, of the employment of the
         Executive with the Company {including death and disability (as
         described below)} for any reason other than cause (as described below)
         or voluntary resignation (as described below). Termination includes
         "Constructive Termination" as described below. Termination includes
         non-renewal or failure to extend this Agreement at the end of any
         employment term, except for cause.

                                  Page 7 of 23

<PAGE>
         a.   The term "disability" means physical or mental incapacity
              qualifying the Executive for a long-term disability under the
              Company's long-term disability plan. If no such plan exists on the
              Effective Date of this Agreement, the term "disability" means
              physical or mental incapacity as determined by a doctor jointly
              selected by the Executive and the Board of Directors of the
              Company qualifying the Executive for long-term disability under
              reasonable employment standards.

         b.   The term "cause" means: (i) the willful and continued failure of
              the Executive substantially to perform his duties with the Company
              (other than any failure due to physical or mental incapacity)
              after a demand for substantial performance is delivered to him by
              the Board of Directors which specifically identifies the manner in
              which the Board believes he has not substantially performed his
              duties, (ii) willful misconduct materially and demonstrably
              injurious to the Company or (iii) material violation of the
              covenant not to compete (except after termination under the Change
              in Control provisions hereof and confidentiality provisions
              hereof.) No act or failure to act by the Executive shall be
              considered "willful" unless done or omitted to be done by him not
              in good faith and without reasonable belief that his action or
              omission was in the best interest of the Company. The
              unwillingness of the Executive to accept any or all of a change in
              the nature or scope of his position, authorities or duties, a
              reduction in his total compensation or benefits, or other action
              by or at request of the Company in respect of his position,
              authority, or responsibility that is contrary to this Agreement,
              may not be considered by the Board of Directors to be a failure to
              perform or misconduct by the Executive. Notwithstanding the
              foregoing, the Executive shall not be deemed to have been
              terminated for cause for purposes of this Agreement unless and
              until there shall have been delivered to him a copy of a
              resolution, duly adopted by a vote of three-fourths of the entire
              Board of Directors of the Company at a meeting of the Board of
              Directors called and held (after reasonable notice to the
              Executive and an opportunity for the Executive and his counsel to
              be heard before the Board) for the purpose of considering whether
              the Executive has been guilty of such a willful failure to perform
              or such willful misconduct as justifies termination for cause
              hereunder, finding that in the good faith opinion of the Board of
              Directors the Executive has been guilty thereof and specifying the
              particulars thereof.

         c.   The term "Constructive Termination" means any circumstance by
              which the actions of the Company either reduce or change
              Executive's title, position, duties, responsibilities or authority
              to such an extent or in such a manner as to relegate Executive
              to a

                                  Page 8 of 23

<PAGE>
              position not substantially similar to that which he presently
              holds; would degrade, embarrass or otherwise make it unreasonable
              for Executive to remain in the employment of the Company; and
              includes violation of the employment provisions and conditions of
              this Agreement.

         d.   The resignation of the Executive shall be deemed "voluntary" if it
              is for any reason other than one or more of the following:

              (i)   The Executive's resignation or retirement is requested by
                    the Company other than for cause;

              (ii)  Any significant adverse change in the nature or scope of the
                    Executive's position, authorities or duties from those
                    described in this Agreement;

              (iii) Any reduction in the Executive's total compensation or
                    benefits from that provided in the Compensation and Benefits
                    Section hereof;

              (iv)  The material breach by the Company of any other provision of
                    this Agreement;

              (v)   Any action by the Company which would constitute
                    Constructive Termination; or

              (vi)  Non-renewal or failure to extend any employment term,
                    contrary to the wishes of the Executive.

         Termination that entitles the Executive to the payments and benefits
provided in the "Termination Payments and Benefits" Section hereof shall not be
deemed or treated by the Company as the termination of the Executive's
employment or the forfeiture of his participation, award, or eligibility, for
the purpose of any plan, practice or agreement of the Company referred to in the
Compensation and Benefits Section hereof.

2.07     CUSTOMER. The term "Customer" includes all persons, firms or entities
         that are purchasers or end-users of services or products offered,
         provided, developed, designed, sold or leased by the Company during the
         relevant time periods, and all persons, firms or entities which
         control, or which are controlled by, the same person, firm or entity
         which controls such purchase.

III.     EMPLOYMENT.

3.01     EMPLOYMENT. Except as otherwise provided in this Agreement, the Company
         hereby agrees to continue the Executive in its employ, and the
         Executive hereby agrees to

                                  Page 9 of 23

<PAGE>
         remain in the employ of the Company, for the Term of Employment
         ("Employment Period") herein specified. During the Employment Period,
         Executive shall exercise such position and authority and perform such
         responsibilities as are commensurate with the position and authority
         being exercised and duties being performed by the Executive immediately
         prior to the Effective Date of this Agreement, which services shall be
         performed at the location where the Executive was employed immediately
         prior to the Effective Date of this Agreement or at such other location
         as the Company may reasonably require.

3.02     BEST EFFORTS AND OTHER EMPLOYMENT OF EXECUTIVE.

         a.   Executive agrees that he will at all times faithfully,
              industriously and to the best of his ability, experience and
              talents, perform all of the duties that may be required of and
              from him pursuant to the express and implicit terms hereof, to the
              reasonable satisfaction of the Company. Such duties shall be
              rendered at Houston, Texas, and such other place or places within
              or outside the State of Texas as the Company shall agree.

         b.   Executive shall devote his normal and regular business time,
              attention and skill to the business and interests of the Company,
              and the Company shall be entitled to all of the benefits, profits
              or other issue arising from or incident to all work, services and
              advice of Executive performed for the Company. Such employment
              shall be considered "full time" employment. Executive shall have
              the right to make investments in businesses which engage in
              activities other than those engaged by the Company. Executive
              shall also have the right to devote such incidental and immaterial
              amount of his time which are not required for the full and
              faithful performance of his duties hereunder to any outside
              activities and businesses which are not being engaged in by the
              Company and which shall not otherwise interfere with the
              performance of his duties hereunder. Executive shall have the
              right to make investments in the manner and to the extent
              authorized and set forth in the Non-Competition Section of this
              Agreement.

3.03     TERM OF EMPLOYMENT. ("EMPLOYMENT PERIOD"). Executive's regular
         employment (no Change in Control being presently contemplated) will
         commence on the Effective Date of this Agreement and will be for a term
         of two (2) years ending at 12:00 o'clock midnight February 4, 2001;
         thereafter, the Term of Employment of Executive will be automatically
         extended for successive terms of one (1) year each commencing February
         5, 2001, and on February 5 of each year thereafter, unless Company or
         Executive gives

                                  Page 10 of 23

<PAGE>
         written notice to the other that employment will not be renewed or
         continued after the next scheduled expiration date which is not less
         than one year after the date that the notice of non-renewal was
         given. All extended employment terms will be considered to be within
         the Employment Period while Executive is employed with the Company.

3.04     COMPENSATION AND BENEFITS. During the Employment Period the Executive
         shall receive the following compensation and benefits:

         a.   He shall receive an annual base salary of not less than his
              annual base salary which is $217,000.00, with the opportunity for
              increases, from time to time thereafter, which are in accordance
              with the Company's regular executive compensation practices.
              Executive's salary will be reviewed at least annually by the
              Compensation Committee of the Board of Directors.

         b.   To the extent that such plans exist immediately prior to the
              Effective Date of this Agreement, he shall be eligible to
              participate on a reasonable basis, and to continue his existing
              participation, in annual bonus, stock option and other incentive
              compensation plans which provide opportunities to receive
              compensation in addition to his annual base salary which are the
              greater of: (i) the opportunities provided by the Company for
              Executives with comparable duties, or (ii) the opportunities under
              any such plans in which he was participating immediately prior to
              the Effective Date of this Agreement.

         c.   To the extent such plans exist immediately prior to the Effective
              Date of this Agreement, he shall be entitled to receive and
              participate in salaried employee benefits including, but not
              limited to: medical, life, health, accident and disability
              insurance and disability benefits and prerequisites which are the
              greater of: (i) the employee benefits and prerequisites provided
              by the Company to Executives with comparable duties, or (ii) the
              employee benefits and prerequisites to which he was entitled or in
              which he participated immediately prior to the Effective Date of
              this Agreement.

         d.   To the extent such plans exist immediately prior to the Effective
              Date of this Agreement, he will be entitled to continue to accrue
              credited service for retirement benefits and to be entitled to
              receive retirement benefits under and pursuant to the terms of the
              Company's qualified retirement plan for salaried employees, the
              Company's supplemental executive retirement plan, and any
              successor or other retirement plan or agreement in effect on the
              Effective Date of this Agreement in respect to his retirement,
              whether or not a qualified plan or agreement, so that his
              aggregate monthly retirement benefit from all such plans and
              agreements (regardless when he begins to receive such benefit)
              will be not less

                                  Page 11 of 23

<PAGE>
              than it would be had all such plans and agreements were in effect
              immediately prior to the Effective Date of this Agreement and
              continued to be in effect without change until and after he begins
              to receive such benefits.

         e.   Paid vacations each year and use of Company cars
              to the same extent as he is presently receiving or the benefits
              provided to Executives with comparable duties whichever
              is greater.

         f.   Participation in all other executive incentive stock and benefit
              plans approved by the Compensation Committee.

3.05.    TERMINATION WITHOUT CHANGE IN CONTROL. The Company shall have the right
         to terminate Executive at any time during the Employment Period
         (including any extended term). Should the Company choose not to renew
         or extend the Employment Period of this Employment Agreement or choose
         to terminate the Executive during, or at the end of, the Employment
         Period, or in the event of death or disability of the Executive, if the
         termination is not after a Change in Control and is not for cause, the
         Company shall, within thirty (30) days following such termination, pay
         and provide to the Executive (or his Executor, Administrator or Estate
         in the event of death, as soon as reasonably practical):

         a.   An amount equal to two full years of his base salary (including
              the amount allocated to the covenant not to compete), which base
              salary is here defined as twelve (12) times the then current
              monthly salary in effect for the Executive and all other benefits
              due him based upon the salary in effect on the Date of Termination
              (but not less than the highest annual base salary paid to the
              Executive during any of the three (3) years immediately preceding
              his Date of Termination). There shall be deducted only such
              amounts as may be required by law to be withheld for taxes and
              other applicable deductions.

         b.   The Company shall provide to Executive for a period of two (2)
              full years following the Date of Termination, life, health,
              accident and disability insurance. These benefits are not to be
              less than the highest benefits furnished to the Executive during
              the term of this Agreement.

         c.   An amount equal to two (2) times the target award for the
              Executive under the Company's annual bonus plan for the fiscal
              year in which termination occurs, provided that if the Executive
              has deferred his award for such year under a Company plan, the
              payment due the Executive under this subparagraph shall be paid in
              accordance with the terms of the deferral or as specified by the
              Executive.

                                  Page 12 of 23

<PAGE>
         d.   The Company shall pay, distribute and otherwise provide to the
              Executive the amount and value of his entire plan account and
              interest under any retirement plan, employee benefit plan,
              investment plan or stock ownership plan, if any exists on the Date
              of Termination, and all employer contributions made or payable to
              any such plan for his account prior to the end of the month in
              which Termination occurs shall be deemed vested and payable to
              him. Such payment or distribution shall be in accordance with the
              elections made by the Executive with respect to distributions in
              accordance with the plan as if the Executive's employment in the
              Company terminated at the end of the month in which Termination
              occurs.

         e.   All stock options and awards to which the Executive is entitled
              will immediately vest and the time for exercising any option will
              be as specified in the plan as if the Executive were still
              employed by the Company; provided however if the immediate vesting
              of all benefits under the plan is not permitted by the plan, then
              the benefits will be vested only to the extent authorized or
              permitted by the plan.

         f.   If Executive elects to treat the termination as retirement then on
              the Date of Termination, the Executive shall be deemed to have
              retired from the Company. At that time, or at such later time as
              he may elect consistent with the terms of any applicable plan or
              benefit, in order to receive benefits or avoid or minimize any
              applicable early pension reduction provisions, he shall be
              entitled to commence to receive total combined qualified and
              non-qualified retirement benefits to which he is entitled
              hereunder; or, his total non-qualified retirement benefit
              hereunder if under the terms of the Company's qualified retirement
              plan for salaried employees he is not entitled to a qualified
              benefit. Executive may treat the termination as termination other
              than "retirement" if Executive so elects and may defer
              "retirement" to a later date if permitted by any applicable plan.

         g.   The "Compensation and Benefits" Section hereof shall be applicable
              in determining the payments and benefits due the Executive under
              this Section and if Termination occurs after a reduction in all or
              part of the Executive's total compensation or benefits, the lump
              sum severance allowance and other compensation and benefits
              payable to him pursuant to this section shall be based upon his
              compensation and benefits before the reduction.

         h.   If any provision of this Section cannot, in whole or in part, be
              implemented and carried out under the terms of the applicable

                                  Page 13 of 23

<PAGE>
              compensation, benefit or other plan or arrangement of the Company
              because the Executive has ceased to be an actual employee of the
              Company, due to insufficient or reduced credited service based
              upon his actual employment by the Company or because the plan or
              arrangement has been terminated or amended after the Effective
              Date of this Agreement, or for any other reason, the Company
              itself shall pay or otherwise provide the equivalent of such
              rights, benefits and credits for such benefits to the Executive,
              his dependents, beneficiaries and estate as if Executive's
              employment had not been terminated.

         i.   All life, health, hospitalization, medical and accident benefits
              available to Executive's spouse and dependents shall continue for
              the same term as the Executive's benefits. If the Executive dies,
              all benefits will be provided for a term of two (2) years (or
              three (3) years if after a change in control) after the date of
              death of the Executive.

         j.   The Company's obligation under this Section to continue to pay or
              provide health care, life, accident and disability insurance to
              the Executive, the Executive's spouse and Executive's dependents,
              during the remainder of the Employment Period shall be reduced
              when and to the extent any of such benefits are paid or provided
              to the Executive by another employer, provided that the Executive
              shall have all rights afforded to retirees to convert group
              insurance coverage to the individual insurance coverage as, to the
              extent of, and whenever his group insurance coverage under this
              Section is reduced or expires. Apart from this subparagraph, the
              Executive shall have and be subject to no obligation to mitigate.

         k.   The Company shall deduct applicable withholding taxes in
              performing its obligations under this Section.

         Nothing in this Section is intended, nor shall be deemed or
interpreted, to be an amendment to any compensation, benefit or other plan to
the Company. To the extent the Company's performance under this Section includes
the performance of the Company's obligations to the Executive under any other
plan or under another agreement between the Company and the Executive, the
rights of the Executive under such other plan or other agreements, which are
discharged under this Agreement, are discharged, surrendered, or released pro
tanto.

IV.      CHANGE IN CONTROL.

4.01     EXTENSION OF EMPLOYMENT PERIOD.  Upon any Change in Control the

                                  Page 14 of 23

<PAGE>
         Employment Period shall be immediately and without further action
         extended for a term of three (3) years following the Effective Date of
         the Change in Control and will expire at 12:00 o'clock midnight on the
         last day of the month following three (3) years after the Change in
         Control. Thereafter, the Employment Period will be extended for
         successive terms of one (1) year each, unless terminated, all in the
         manner specified in the Term of Employment Section pertaining to
         regular employment.

4.02     CHANGE IN CONTROL, TERMINATION PAYMENTS AND BENEFITS. In the event the
         Executive is terminated within three (3) years following a Change in
         Control, the Executive will receive the payments and benefits specified
         in the "Termination without Change in Control" Section in the same time
         and manner therein specified except as amended and modified hereby:

         a.   The salary and benefits specified in Section 3.05a will be paid
              based upon a multiple of three (3) years (instead of two (2)
              years).

         b.   Life, health, accident and disability insurance specified in
              Section 3.05b will be provided until: (i) Executive becomes
              reemployed and receives similar benefits from a new employer, or
              (ii) three (3) years after the Date of Termination, whichever is
              earlier.

         c.   An amount equal to three (3) times the maximum award that the
              Executive could receive under the Company's Annual Bonus Plan for
              the fiscal year in which the termination occurs, instead of the
              benefits provided in Section 3.05(c) hereof.

         d.   All other rights and benefits specified in Section 3.05.

4.03     VOLUNTARY RESIGNATION UPON CHANGE IN CONTROL. If the Executive
         voluntarily resigns his employment within twelve (12) months after a
         Change in Control (whether or not Company may be alleging the right to
         terminate employment for cause), he will receive the same payments,
         compensation and benefits as if he had been terminated on the date of
         resignation after Change in Control.

V.       NON-COMPETITION AND CONFIDENTIALITY.

5.01     CONSIDERATION. The base salary awarded to the Executive and to be paid
         to the Executive in the future includes consideration for the
         Non-Competition and Confidentiality Agreement set forth herein and the
         amount to be paid to Executive in the event of the termination of
         employment of Executive, voluntarily, involuntarily, or under a Change
         in Control, under Sections 3.05a and 4.02a hereof constitute payment,
         in part, for the Non-Competition and Confidentiality of the Executive.
         It is contracted, stipulated

                                  Page 15 of 23

<PAGE>
         and agreed that fifteen percent (15%) of such amount paid and to be
         paid to the Executive shall constitute the consideration for the
         Non-Competition and Confidentiality Agreement set forth herein.

5.02     NON-COMPETITION. Executive acknowledges that his employment with the
         Company has in the past and will, of necessity, provide him with
         specialized knowledge which, if used in competition with the Company
         could cause serious harm to the Company. Accordingly, the Executive
         agrees that during his employment with the Company and for a period of
         two (2) years after he is no longer employed by the Company (unless his
         employment is terminated after a Change in Control, in which event
         there will be no covenant not to compete and the provisions of the
         covenant not to compete herein contained will terminate on the date of
         termination of Executive) the Executive will not, directly or
         indirectly, either as an individual, proprietor, stockholder {other
         than as a holder of up to one percent (1%) of the outstanding shares of
         a corporation whose shares are listed on a stock exchange or traded in
         accordance with the automated quotation system of the National
         Association of Securities Dealers}, partner, officer, employee or
         otherwise:

         a.   work for, become an employee of, invest in, provide consulting
              services or in any way engage in any business which provides,
              produces, leases or sells products or services of the same or
              similar type provided, produced, leased or sold by the Company and
              with regard to which Executive was engaged, or over which
              Executive had direct or indirect supervision or control, within
              three (3) years preceding the Executive's termination of
              employment, in any area where the Company provided, produced,
              leased or sold such products or services at any time during the
              three (3) years preceding such termination of employment; or

         b.   provide, sell, offer to sell, lease, offer to lease, or solicit
              any orders for any products or services which the Company provided
              and with regard to which the Executive had direct or indirect
              supervision or control, within three (3) years preceding
              Executive's termination of employment, to or from any person, firm
              or entity which was a customer for such products or services of
              the Company during the three (3) years preceding such termination
              from whom the Company had solicited business during such three (3)
              years; or

         c.   solicit, aid, counsel or encourage any officer, director, employee
              or other individual to: (i) leave his or her employment or
              position with the Company, (ii) compete with the business of the
              Company, or (iii) violate the terms of any employment,
              non-competition or similar

                                  Page 16 of 23

<PAGE>
              agreement with the Company; or

         d.   employ, directly or indirectly; permit the employment of; contract
              for services or work to be performed by; or otherwise, use,
              utilize or benefit from the services of any officer, director,
              employee or any other individual holding a position with the
              Company within two (2) years after the Date of Termination of
              employment of Executive with the Company or within two (2) years
              after such officer, director, employee or individual terminated
              employment with the Company, whichever occurs earlier.

5.03     CONFIDENTIALITY. Executive acknowledges that his employment with the
         Company has in the past and will, of necessity, provide him with
         specialized knowledge which, if used in competition with the Company,
         or divulged to others, could cause serious harm to the Company.
         Accordingly, Executive will not at any time during or after his
         employment by the Company, directly or indirectly, divulge, disclose or
         communicate to any person, firm or corporation (in any manner
         whatsoever) any information concerning any matter affecting or relating
         to the Company or the business of the Company. While engaged as an
         employee of the Company, Executive may only use information concerning
         any matters affecting or relating to the Company or the business of the
         Company for a purpose which is necessary to the carrying out of the
         Executive's duties as an employee of the Company, and Executive may not
         make use of any information of the Company after he is no longer an
         employee of the Company. The Executive agrees to the foregoing without
         regard to whether all of the foregoing matters will be deemed
         confidential, material or important, it being stipulated by the
         parties. All information, whether written or otherwise, regarding the
         Company's business, including, but not limited to, information
         regarding customers, customer lists, costs, prices, earnings, products,
         services, formulae, compositions, machinery, equipment, apparatus,
         systems, manufacturing procedures, operations, potential acquisitions,
         new location plans, prospective and executed contracts and other
         business arrangements, and sources of supply, is prima facie presumed
         to be important, material and confidential information of the Company
         for the purposes of this Agreement, except to the extent that such
         information may be otherwise lawfully and readily available to the
         general public. The Executive further agrees that he will, upon
         termination of his employment with the Company, return to the Company
         all books, records, lists and other written, typed or printed
         materials, whether furnished by the Company or prepared by the
         Executive, which contain any information relating to the Company's
         business, and the Executive agrees that he will neither make nor retain
         any copies of such materials after termination of employment.
         Notwithstanding any of the foregoing, the Executive will not be liable
         for any breach of these confidentiality provisions unless the same
         constitutes a material detriment

                                 Page 17 of 23

<PAGE>
         to the Company, or due to the nature of the information divulged and
         the manner in which it was divulged and the person to whom it was
         divulged would likely cause damage to the Company or constitute a
         material detriment to the Company.

5.04     GEOGRAPHICAL AREA. The geographical area within which the
         non-competition covenants of this Agreement shall apply is that
         territory within two hundred (200) miles of: (i) any of the Company's
         present offices, (ii) any of the Company's present rig yards, and (iii)
         any additional location where the Company, as of the date of any action
         taken in violation of the non-competition covenants of this Agreement,
         has an office, a rig yard, or definitive plans to locate an office or a
         rig yard. Notwithstanding the foregoing, if the two hundred (200) mile
         radius extends into another country and the Company is not then doing
         business in that other country, there will be no territorial
         limitations extending into such other country.

5.05     COMPANY REMEDIES FOR VIOLATION OF NON-COMPETITION OR CONFIDENTIALITY
         AGREEMENT. Without limiting the right of the Company to pursue all
         other legal and equitable rights available to it for violation of any
         of the covenants made by Executive herein, it is agreed that:

         a.   the skills, experience and contacts of Executive are of a special,
              unique, unusual and extraordinary character which give them a
              peculiar value;

         b.   because of the business of the Company, the restrictions agreed to
              by Executive as to time and area contained in this Agreement are
              reasonable; and

         c.   the injury suffered by the Company by a violation of any covenant
              in this Agreement resulting from loss of profits created by the
              competitive use of such skills, experience and contacts that
              otherwise will be difficult to calculate in damages in an action
              at law and cannot fully compensate the Company for any violation
              of any covenant in this Agreement, accordingly:

              (i)   the Company shall be entitled to injunctive relief to
                    prevent violations of such covenants or continuing
                    violations thereof and to prevent Executive from rendering
                    any services to any person, firm or entity in breach of such
                    covenant and to prevent Executive from divulging any
                    confidential information, and

              (ii)  compliance with this Agreement is a condition

                                  Page 18 of 23

<PAGE>
                    precedent to the Company's obligation to make payments of
                    any nature to the Executive.

5.06     TERMINATION OF BENEFITS FOR VIOLATION OF NON-COMPETITION AND
         CONFIDENTIALITY. If Executive's termination was not after a Change in
         Control and if the Executive shall have materially violated the
         Confidentiality and/or Non-Competition Agreement or any agreement he
         may have signed as an employee of the Company, the Executive agrees
         that there shall be no obligation on the part of the Company to provide
         any payments or benefits (other than payments or benefits already
         earned or accrued) described in the Termination of Rights and Benefits
         Section hereof, subject to the provisions of Section 6.01 hereof. There
         will be no withholding of benefits or payments if the termination
         occurred after a Change in Control and Executive will not be bound by
         the non-competition provisions if terminated while the Change in
         Control provisions hereof are applicable.

VI.      GENERAL.

6.01     ENFORCEMENT COSTS. The Company is aware that upon the occurrence of a
         Change in Control, or under other circumstances even when a Change in
         Control has not occurred, the Board of Directors or a stockholder of
         the Company may then cause or attempt to cause the Company to refuse to
         comply with its obligations under this Agreement, or may cause or
         attempt to cause the Company to institute, or may institute, litigation
         seeking to have this Agreement declared unenforceable, or may take, or
         attempt to take other action to deny Executive the benefits intended
         under this Agreement; or actions may be taken to enforce the
         non-competition or confidentiality provisions of this Agreement. In
         these circumstances, the purpose of this Agreement could be frustrated.
         It is the intent of the parties that the Executive not be required to
         incur the legal fees and expenses associated with the protection or
         enforcement of his rights under this Agreement by litigation or other
         legal action because such costs would substantially detract from the
         benefits intended to be extended to Executive hereunder, nor be bound
         to negotiate any settlement of his rights hereunder under threat of
         incurring such costs. Accordingly, if at any time after the Effective
         Date of this Agreement, it should appear to Executive that the Company
         is or has acted contrary to or is failing or has failed to comply with
         any of its obligations under this Agreement for the reason that it
         regards this Agreement to be void or unenforceable, that Executive has
         violated the terms of this Agreement, or for any other reason, or that
         the Company has purported to terminate his employment for cause or is
         in the course of doing so, or is withholding payments or benefits, or
         is threatening to withhold payments or benefits, contrary to this
         Agreement, or in the event that the Company or any other person takes
         any action to declare this Agreement void or unenforceable, or
         institutes any litigation or other legal action

                                  Page 19 of 23

<PAGE>
         designed to deny, diminish or to recover from Executive the benefits
         provided or intended to be provided to him hereunder, and Executive has
         acted in good faith to perform his obligations under this Agreement,
         the Company irrevocably authorizes Executive from time to time to
         retain counsel of his choice at the expense of the Company to represent
         him in connection with the protection and enforcement of his rights
         hereunder, including, without limitation, representation in connection
         with termination of his employment or withholding of benefits or
         payments contrary to this Agreement or with the initiation or defense
         of any litigation or any other legal action, whether by or against the
         Executive or the Company or any Director, Officer, stockholder or other
         person affiliated with the Company, in any jurisdiction. Company is not
         authorized to withhold the periodic payments of attorneys' fees and
         expenses hereunder based upon any belief or assertion by the Company
         that Executive has not acted in good faith or has violated this
         Agreement. If Company subsequently establishes that Executive was not
         acting in good faith and has violated this Agreement, Executive will be
         liable to the Company for reimbursement of amounts paid due to
         Executive's actions not based on good faith and in violation of this
         Agreement. The reasonable fees and expenses of counsel selected from
         time to time by Executive as hereinabove provided shall be paid or
         reimbursed to Executive by the Company, on a regular, periodic basis
         within thirty (30) days after presentation by Executive of a statement
         or statements prepared by such counsel in accordance with its customary
         practices, up to a maximum aggregate amount of $250,000.00.

6.02     INCOME, EXCISE OR OTHER TAX LIABILITY. Executive will be liable for and
         will pay all income tax liability by virtue of any payments made to the
         Executive under this Agreement, as if the same were earned and paid in
         the normal course of business and not the result of a Change in Control
         and not otherwise triggered by the "golden parachute" or excess payment
         provisions of the Internal Revenue Code of the United States, which
         would cause additional tax liability to be imposed. If any additional
         income tax, excise or other taxes are imposed on any amount or payment
         in the nature of compensation paid or provided to or on behalf of
         Executive, the Company shall "gross up" Executive for such tax
         liability by paying to Executive an amount sufficient so that after
         payment of all such taxes so imposed Executive's position on an
         after-tax basis is what it would have been had no such additional taxes
         been imposed. Executive will cooperate with the company to minimize the
         tax consequences to the Executive and to the Company so long as the
         actions proposed to be taken by the Company do not cause any additional
         tax consequences to Executive and do not prolong or delay the time that
         payments are to be made, or the amount of payments to be made, unless
         the Executive consents, in writing, to any delay or deferment of
         payment.

                                  Page 20 of 23

<PAGE>
6.03     PAYMENT OF BENEFITS UPON TERMINATION FOR CAUSE. If the termination of
         Executive is for cause and not after a Change in Control, the Company
         will have the right to withhold all payments (except those specified in
         Sections 6.01); provided, however, that if a final judgment is entered
         finding that cause did not exist for termination, the Company will pay
         all benefits to Executive to which he would have been entitled had the
         termination not been for cause, plus interest on all amounts withheld
         from the Executive at the rate specified for judgments under Article
         5069-1.05 V.A.T.S. but not less than ten percent (10%) per annum. If
         the termination for cause occurs after a Change in Control, the Company
         shall have no right to suspend or withhold payments to Executive under
         any provision of this Agreement until or unless a final judgment is
         entered upholding the Company's determination that the termination was
         for cause, in which event Executive will be liable to the Company for
         all amounts paid, plus interest at the rate allowed for judgments under
         Article 5069-1.05 V.A.T.S.

6.04     NON-EXCLUSIVE AGREEMENT. The specific arrangements referred to herein
         are not intended to exclude or limit Executive's participation in other
         benefits available to executive personnel generally, or to preclude or
         limit other compensation or benefits as may be authorized by the Board
         of Directors of the Company at any time, or to limit or reduce any
         compensation or benefits to which Executive would be entitled but for
         this Agreement.

6.05     NOTICES. Notices, requests, demands and other communications provided
         for by this Agreement shall be in writing and shall either be
         personally delivered by hand or sent by: (i) Registered or Certified
         Mail, return receipt requested, postage prepaid, properly packaged,
         addressed and deposited in the United States Postal System; (ii) by
         facsimile transmission if the receiver acknowledges receipt; or (iii)
         by Federal Express or other expedited delivery service provided that
         acknowledgment of receipt is received and retained by the deliverer and
         furnished to the sender, if to Executive, at the last address he has
         filed in writing with the Company, or if to the Company, to its
         Corporate Secretary at its principal executive offices.

6.06     NON-ALIENATION. Executive shall not have any right to pledge,
         hypothecate, anticipate, or in any way create a lien upon any amounts
         provided under this Agreement, and no payments or benefits due
         hereunder shall be assignable in anticipation of payment either by
         voluntary or involuntary acts or by operation of law. So long as
         Executive lives, no person, other than the parties hereto, shall have
         any rights under or interest in this Agreement or the subject matter
         hereof. Upon the death of Executive, his Executors, Administrators,
         devisees and heirs, in that order, shall have the right to enforce the
         provisions hereof.

                                  Page 21 of 23

<PAGE>
6.07     ENTIRE AGREEMENT: AMENDMENT. This Agreement constitutes the entire
         agreement of the parties with respect to the subject matter hereof. No
         provision of this Agreement may be amended, waived, or discharged
         except by the mutual written agreement of the parties. The consent of
         any other person(s) to any such amendment, waiver or discharge shall
         not be required.

6.08     SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure
         to the benefit of the Company, its successors and assigns, by operation
         of law or otherwise, including, without limitation, any corporation or
         other entity or persons which shall succeed (whether direct or
         indirect, by purchase, merger, consolidation or otherwise) to all or
         substantially all of the business and/or assets of the Company, and the
         Company will require any successor, by agreement in form and substance
         satisfactory to Executive, expressly to assume and agree to perform
         this Agreement. Except as otherwise provided herein, this Agreement
         shall be binding upon and inure to the benefit of Executive and his
         legal representatives, heirs and assigns, provided however, that in the
         event of Executive's death prior to payment or distribution of all
         amounts, distributions and benefits due him hereunder, each such unpaid
         amount and distribution shall be paid in accordance with this Agreement
         to the person or persons designated by Executive to the Company to
         receive such payment or distribution and in the event Executive has
         made no applicable designation, to his Estate. If the Company should
         split, divide or otherwise become more than one entity, all liability
         and obligations of the Company shall be the joint and several liability
         and obligation of all of the parties.

6.09     GOVERNING LAW. Except to the extent required to be governed by the laws
         of the State of Louisiana because the Company is incorporated under the
         laws of said State, the validity, interpretation and enforcement of
         this Agreement shall be governed by the laws of the State of Texas.

6.10     VENUE. To the extent permitted by applicable State and Federal law,
         venue for all proceedings hereunder will be in Harris County, Texas.

6.11     HEADINGS. The headings in this Agreement are inserted for convenience
         of reference only and shall not affect the meaning or interpretation of
         this Agreement.

6.12     SEVERABILITY. In the event that any provision or portion of this
         Agreement shall be determined to be invalid or unenforceable for any
         reason, the remaining provisions of this Agreement shall be unaffected
         thereby and shall remain in full force and effect.

6.13     PARTIAL INVALIDITY. In the event that any part, portion or Section of
         this

                                  Page 22 of 23

<PAGE>
         Agreement is found to be invalid or unenforceable for any reason, the
         remaining provisions of this Agreement shall be binding upon the
         parties hereto and the Agreement will be construed to give meaning to
         the remaining provisions of this Agreement in accordance with the
         intent of this Agreement.

6.14     COUNTERPARTS. This Agreement may be executed in one or more
         counterparts, each of which shall be deemed to be original, but all of
         which together constitute one and the same instrument.

         IN WITNESS WHEREOF, Executive has hereunto set his hand and, pursuant
to the authorization from its Board of Directors and the Compensation Committee,
the Company has caused these presents to be executed in its name and on its
behalf, and its corporate seal to be hereunto affixed and attested by its
Secretary or Assistant Secretary, all as of the day and year first above
written.

         Executed in multiple originals and/or counterparts as of the Effective
Date.

                                           /s/ JOHN C. G. O'LEARY
                                           -------------------------------------
                                           JOHN C.G. O'LEARY

                                           PRIDE INTERNATIONAL, INC.

CORPORATE SEAL

                                           BY: /s/ RAY H. TOLSON
                                              ----------------------------------
                                           RAY H. TOLSON
                                           CEO and Chairman of the Board

ATTEST:

BY: /s/ Frida A. Martinez
   -------------------------------
Frida A. Martinez
Assistant Secretary

                                  Page 23 of 23

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