8-K

                 SECURITIES AND EXCHANGE COMMISSION

                       Washington, D.C. 20549

                              FORM 8-K

                           CURRENT REPORT

                 Pursuant to Section 13 or 15(d) of
                the Securities Exchange Act of 1934

                 Date of Report:  April 3, 1996

                    READING & BATES CORPORATION
       (Exact name of registrant as specified in its charter)

       Delaware              1-5587               73-0642271
   (State or other        (Commission         (I.R.S. Employer
    jurisdiction of        File Number)      Identification No.)
    incorporation)

          901 Threadneedle, Suite 200, Houston, TX   77079  
       (Address of principal executive offices)   (Zip Code)

  Registrant's telephone number, including area code  (713)496-5000


  Item 7. Financial Statements and Exhibits

         (c)  Exhibits

                  Exhibit 99  - Press  Release dated April 3,  1996 - Letter
                                of intent with BP Exploration  for continued
                                utilization of the "PAUL B. LOYD, JR.".

                             SIGNATURE

  Pursuant to the requirements  of the Securities Exchange  Act of 1934, the
  registrant has duly caused  this report to be signed on its  behalf of the
  undersigned thereunto duly authorized.

                              READING & BATES CORPORATION

                              By  /s/T. W. Nagle                            
                                    T. W. Nagle
                                    Executive Vice President, 
                                    Finance and Administration 


  Dated: April 3, 1996        

EX-99

                                                                   EXHIBIT 99

  FOR IMMEDIATE RELEASE                        Contact:  Mr. Charles R. Ofner
                                                               (713) 496-5000
       
       
  April  3, 1996,          Houston,  Texas.....Reading &  Bates  Corporation
  (RB-NYSE) announced that BP  Exploration has issued a letter of intent for
  continued  utilization  of the  fourth-generation semisubmersible  PAUL B.
  LOYD, JR. on the Foinaven field and to perform development drilling in the
  Schiehallion  field  west of  Shetland  in the  U.K. sector  of  the North
  Atlantic.   The  PAUL B.  LOYD,  JR. is  owned by  Arcade  Drilling AS,  a
  Norwegian company in which Reading & Bates Corporation holds approximately
  74% ownership interest.   The PAUL B. LOYD,  JR. is currently drilling for
  BP Exploration  Operating Company  Limited on the Foinaven  field west  of
  Shetland, and a subsidiary of Reading & Bates now  operates the unit under
  a management contract  which began on December 4,  1995.  The new drilling
  contract with BP will commence November 1, 1996, and is expected to have a
  term  between 36 and 54  months, with the  first 31 months  priced at firm
  dayrates.   Dayrates are mutually agreed  after the first  31 months.  The
  total contract value  of the 31 month firm-priced period  is approximately
  $125.8  million, with the final 12 months of  the 31 month period having a
  contract value of  $51.8 million.  These contract value  estimates exclude
  possible gain share incentives which are  based on risk/reward performance
  elements to be mutually agreed.   

       The  letter of  intent with BP provides  a framework  which may allow
  Reading  & Bates to provide  an additional fourth-generation rig  to BP on
  terms and conditions  similar to those of the  PAUL B. LOYD, JR. contract,
  and in such an event, the  contract term for the PAUL B. LOYD, JR. may  be
  reduced to  less than  36 months,  but in  no event  less than 20  months,
  except in the event of a cancellation of the project development by BP.  
       
       Paul B. Loyd, Jr., the Company's Chairman, President and CEO  stated,
  "These programs are  very significant to BP  and the offshore drilling and
  floating production  business generally.   We  are extremely  pleased that
  Reading &  Bates  has been  selected  to  execute  demanding  Schiehallion
  development.   This award  further  expands our  relationship with  BP  as
  Reading  &  Bates also  has the  dynamically positioned  multiservice semi
  IOLAIR working for BP west of Shetland.   Once again, this new project  is
  graphic illustration of the  earnings power of our fourth-generation units
  as the  market for their  services has tightened and they  are utilized in
  the specific environments for which they were designed."
       
       Reading  &  Bates  is  a New  York  Stock  Exchange  listed  company,
  providing offshore drilling  services throughout  the world.   Its  wholly
  owned  subsidiary, Reading  & Bates  Development Co.,  provides technical,
  construction  and  project  management  services  and floating  production
  systems to the upstream offshore oil and gas industry worldwide.     

                                      ###