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
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Baudoin Mark F
  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)
05/19/2008
(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 05/19/2008   M   625 A $ 92.67 625 D  
Common Stock 05/19/2008   F   415 D $ 139.325 210 D  
Common Stock 05/19/2008   S   210 D $ 140.4237 0 D  
Common Stock 05/19/2008   M   313 A $ 83.44 313 D  
Common Stock 05/19/2008   F   187 D $ 139.325 126 D  
Common Stock 05/19/2008   S   126 D $ 140.4237 0 D  
Common Stock 05/19/2008   M   313 A $ 71.87 313 D  
Common Stock 05/19/2008   F   161 D $ 139.325 152 D  
Common Stock 05/19/2008   S   152 D $ 140.4237 0 D  
Common Stock 05/19/2008   M   313 A $ 79.77 313 D  
Common Stock 05/19/2008   F   179 D $ 139.325 134 D  
Common Stock 05/19/2008   S   134 D $ 140.4237 0 D  
Common Stock 05/19/2008   M   500 A $ 81.42 500 D  
Common Stock 05/19/2008   F   292 D $ 139.325 208 D  
Common Stock 05/19/2008   S   208 D $ 140.4237 0 D  
Common Stock 05/19/2008   M   500 A $ 101.97 500 D  
Common Stock 05/19/2008   F   365 D $ 139.325 135 D  
Common Stock 05/19/2008   S   135 D $ 140.4237 0 D  
Common Stock 05/19/2008   M   500 A $ 114.21 500 D  
Common Stock 05/19/2008   F   409 D $ 139.325 91 D  
Common Stock 05/19/2008   S   91 D $ 140.4237 0 D  
Common Stock               198.8521 I By 401(k) Plan (1)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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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 Appreciation Right $ 92.67 05/19/2008   M     625 04/27/2008(2) 04/27/2016 Common Stock 625 $ 0 625 (3) D  
Stock Appreciation Right $ 83.44 05/19/2008   M     313 04/27/2008(4) 07/03/2016 Common Stock 313 $ 0 625 (3) D  
Stock Appreciation Right $ 71.87 05/19/2008   M     313 04/27/2008(4) 10/02/2016 Common Stock 313 $ 0 625 (3) D  
Stock Appreciation Right $ 79.77 05/19/2008   M     313 04/27/2008(4) 12/31/2016 Common Stock 313 $ 0 625 (3) D  
Stock Appreciation Right $ 81.42 05/19/2008   M     500 04/02/2008(5) 04/02/2017 Common Stock 500 $ 0 1,500 (6) D  
Stock Appreciation Right $ 101.97 05/19/2008   M     500 04/02/2008(5) 07/02/2017 Common Stock 500 $ 0 1,500 (6) D  
Stock Appreciation Right $ 114.21 05/19/2008   M     500 04/02/2008(5) 10/01/2017 Common Stock 500 $ 0 1,500 (6) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Baudoin Mark F
15415 KATY FREEWAY
SUITE 100
HOUSTON, TX 77094
      Senior Vice President  

Signatures

 /s/ William C. Long Attorney-in-Fact for Mark F. Baudoin   05/21/2008
**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) Based on a plan statement as of May 19, 2008.
(2) The stock appreciation rights vested in two annual installments on April 27, 2007 and April 27, 2008.
(3) The stock appreciation rights vest in two annual installments beginning on April 27, 2009.
(4) The stock appreciation rights vested on April 27, 2008.
(5) The stock appreciation rights vested on April 2, 2008.
(6) The stock appreciation rights vest in three annual installments beginning on April 2, 2009.
 
Remarks:
Form 2 of 2 dated May 21, 2008.

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