Prospectus Supplement                           Filed Pursuant to Rule 424(b)(3)
(To Prospectus dated August 23, 2001)           Registration Number 333-63980

                                  $460,000,000

                         DIAMOND OFFSHORE DRILLING, INC.

                  1-1/2% CONVERTIBLE SENIOR DEBENTURES DUE 2031

                         -----------------------------

           This prospectus supplement relates to the resale by the holders of
our 1-1/2% Convertible Senior Debentures Due 2031 and the shares of our common
stock issuable upon the conversion of the debentures.

           This prospectus supplement should be read in conjunction with, and
may not be delivered or utilized without, the prospectus dated August 23, 2001.
The terms of the debentures are set forth in the prospectus.

           The information in the table appearing under the heading "Selling
Securityholders" in the prospectus is amended by adding the information below
with respect to persons not previously listed in the prospectus and by
supplementing the information with respect to other persons previously listed in
the prospectus that are listed below.




                                                               PRINCIPAL AMOUNT OF           PERCENTAGE              NUMBER OF
                                                                   DEBENTURES                    OF                  CONVERSION
                                                                 BENEFICIALLY OWNED          DEBENTURES              SHARES THAT
NAME (1)                                                         THAT MAY BE SOLD            OUTSTANDING            MAY BE SOLD (2)
- --------                                                         ----------------         ----------------          ---------------
                                                                                                         
Banca del Gottardo Lugano...................................         $    250,000                0.05%                    5,099


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(1)   Information concerning other selling holders of debentures will be set forth in prospectus supplements from
      time to time, if required.

(2)   The conversion shares do not total 9,382,988 shares due to rounding resulting from the elimination of fractional
      shares.
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                         The date of this prospectus supplement is January 31, 2003.