The deepwater drillship, West Navion, is currently operating for Marathon Oil Company in Canada. Due to delay in operations earlier this year and changes to the drilling program, the contract with Marathon will have a longer duration than initially planned. West Navion will subsequently be mobilized to west of Shetland for Amerada Hess. The contract with Amerada Hess includes drilling of two deepwater exploration wells
and is expected to last until November this year. In addition, the Amerada Hess
contract includes a one well option in 2003. As a result of the delayed drilling program in Canada, Esso Norge AS has decided to exercise their right to cancel the drilling contract for the drillship West Navion. The commencement was planned from August this year with an expected duration of three months.