Smedvig Secures New Contract

Smedvig has been awarded a letter of intent by A/S Norske Shell for the assignment of the deepwater drillship West Navigator on the Ormen Lange field in the Norwegian Sea. The assignment includes drilling of eight deepwater wells in approximately 900 meters of water, with options for four additional wells. The contract value for the firm part of the contract is estimated to US$ 167 million (NOK 1.17 billion). The commencement is planned in the second half of 2005. The drilling period for the firm part of the contract is estimated to 740 days, while the option period could have a duration up to one year. The assignment is subject to final government approval of the Ormen Lange project. Kjell E Jacobsen, CEO in Smedvig asa says: "The contract with Shell secures long-term employment for West Navigator and confirms Smedvig's position within harsh environment deepwater drilling. This contract is an important step in the long-term development of Smedvig."