Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden hours per response... 0.5

(Print or Type Responses)
1. Name and Address of Reporting Person *
EADS RODNEY W
  2. Issuer Name and Ticker or Trading Symbol
DIAMOND OFFSHORE DRILLING INC [DO]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Senior Vice President
(Last)
(First)
(Middle)
15415 KATY FREEWAY, SUITE 100
3. Date of Earliest Transaction (Month/Day/Year)
01/06/2006
(Street)

HOUSTON, TX 77094
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 01/06/2006   M   200 A $ 43.03 200 D  
Common Stock 01/06/2006   S   200 D $ 74.74 0 D  
Common Stock 01/06/2006   M   500 A $ 19.08 500 D  
Common Stock 01/06/2006   S   500 D $ 74.53 0 D  
Common Stock 01/06/2006   M   4,572 A $ 43.03 4,572 D  
Common Stock 01/06/2006   S   4,572 D $ 74.53 0 D  
Common Stock 01/06/2006   M   500 A $ 22.49 500 D  
Common Stock 01/06/2006   S   500 D $ 74.53 0 D  
Common Stock 01/06/2006   M   313 A $ 38.94 313 D  
Common Stock 01/06/2006   S   313 D $ 74.53 0 D  
Common Stock 01/06/2006   M   500 A $ 32.78 500 D  
Common Stock 01/06/2006   S   500 D $ 74.53 0 D  
Common Stock 01/06/2006   M   313 A $ 33.51 313 D  
Common Stock 01/06/2006   S   313 D $ 74.53 0 D  
Common Stock 01/06/2006   M   594 A $ 29.2 594 D  
Common Stock 01/06/2006   S   594 D $ 74.53 0 D  
Common Stock 01/06/2006   M   594 A $ 29.33 594 D  
Common Stock 01/06/2006   S   594 D $ 74.53 0 D  
Common Stock 01/06/2006   M   500 A $ 20.77 500 D  
Common Stock 01/06/2006   S   500 D $ 74.53 0 D  
Common Stock 01/06/2006   M   313 A $ 24.6 313 D  
Common Stock 01/06/2006   S   313 D $ 74.53 0 D  
Common Stock 01/06/2006   M   500 A $ 39.98 500 D  
Common Stock 01/06/2006   S   500 D $ 74.53 0 D  
Common Stock 01/06/2006   M   500 A $ 23.65 500 D  
Common Stock 01/06/2006   S   500 D $ 74.53 0 D  
Common Stock 01/06/2006   M   594 A $ 19.88 594 D  
Common Stock 01/06/2006   S   594 D $ 74.53 0 D  
Common Stock 01/06/2006   M   313 A $ 30.53 313 D  
Common Stock 01/06/2006   S   313 D $ 74.53 0 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (right to buy) $ 43.03 01/06/2006   M     200 05/16/2001(1) 05/16/2010 Common Stock 200 $ 0 4,572 D  
Stock Option (right to buy) $ 43.03 01/06/2006   M     4,572 05/16/2001(1) 05/16/2010 Common Stock 4,572 $ 0 0 D  
Stock Option (right to buy) $ 38.94 01/06/2006   M     313 04/12/2002(2) 04/12/2011 Common Stock 313 $ 0 0 D  
Stock Option (right to buy) $ 24.6 01/06/2006   M     313 04/12/2002(2) 10/01/2011 Common Stock 313 $ 0 0 D  
Stock Option (right to buy) $ 33.51 01/06/2006   M     313 04/12/2002(2) 07/02/2011 Common Stock 313 $ 0 0 D  
Stock Option (right to buy) $ 19.08 01/06/2006   M     500 04/22/2004(3) 10/01/2013 Common Stock 500 $ 0 1,000 D  
Stock Option (right to buy) $ 22.49 01/06/2006   M     500 05/18/2005(4) 05/18/2014 Common Stock 500 $ 0 1,500 D  
Stock Option (right to buy) $ 30.53 01/06/2006   M     313 04/12/2002(2) 01/02/2012 Common Stock 313 $ 0 0 D  
Stock Option (right to buy) $ 29.33 01/06/2006   M     594 04/15/2003(5) 04/15/2012 Common Stock 594 $ 0 594 D  
Stock Option (right to buy) $ 29.2 01/06/2006   M     594 04/15/2003(5) 07/01/2012 Common Stock 594 $ 0 594 D  
Stock Option (right to buy) $ 19.88 01/06/2006   M     594 04/15/2003(5) 10/01/2012 Common Stock 594 $ 0 594 D  
Stock Option (right to buy) $ 20.77 01/06/2006   M     500 04/22/2004(3) 12/31/2013 Common Stock 500 $ 0 1,000 D  
Stock Option (right to buy) $ 23.65 01/06/2006   M     500 05/18/2005(4) 07/01/2014 Common Stock 500 $ 0 1,500 D  
Stock Option (right to buy) $ 32.78 01/06/2006   M     500 05/18/2005(4) 10/01/2014 Common Stock 500 $ 0 1,500 D  
Stock Option (right to buy) $ 39.98 01/06/2006   M     500 05/18/2005(4) 12/31/2014 Common Stock 500 $ 0 1,500 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
EADS RODNEY W
15415 KATY FREEWAY
SUITE 100
HOUSTON, TX 77094
      Senior Vice President  

Signatures

 /s/ William C. Long Attorney-in-Fact for Rodney W. Eads   01/10/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The options vested in four equal annual installments on May 16, 2001, 2002, 2003 and 2004.
(2) The options vested in four equal annual installments on April 12, 2002, 2003, 2004 and 2005.
(3) The options vested in two equal annual installments on April 22, 2004 and April 22, 2005.
(4) The options vested on May 18, 2005.
(5) The options vested in three equal annual installments on April 15, 2003, 2004 and 2005.
 
Remarks:
Form 1 of 2 dated January 10, 2006.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.