Smedvig Secures Contract Extension for West Venture
Smedvig has signed an agreement with Norsk Hydro to extend the drilling contract for the semi-submersible drilling rig West Venture. The extension of the drilling contract has a firm duration of two years and in addition, annual renewal options for five more years. The estimated contract value for the firm period is US$ 150 million (approximately NOK 1 billion) and includes an incentive scheme related to drilling performance. West Venture is equipped with a dual derrick set allowing for enhanced drilling efficiency. The dual drilling system is especially advantageous in completion of subsea production wells. West Venture has operatedā¦
Operations Halt on West Navion
In connection with minor repair work the derrick of the drillship, West Navion, it has been uncovered cracks in the wire sheaves in the hoisting system of the dual derrick set (Ram Rig). As a result of the findings, operations on West Navion are temporarily halted. It is expected that the halt will last for another 2-3 weeks before operations are resumed. Maritime Hydraulics, the supplier of the dual derrick set, has issued a request to "All users of Maritime Hydraulics' Ram Rigs" to inspect all drilling units equipped with the dual Ram Rig. Consequently, Smedvig will initiate inspection of the drilling rig West Venture, which is also equipped with the Ram Rig derrick set. West Navion is Contracted to Marathon Oil Company Offshore Canada.
Smedvig Reports Operating Profits For 2001
Smedvig reports preliminary consolidated operating profit for 2001 of $112 million, an increase of $16 million from the previous year. The operating profit is the best result ever posted by the company. The result reflects a high utilization of the company's fleet of drilling units, favorable market conditions and efficient operations. profit for the fourth quarter was $25.4 million, a decrease of $5.8 million as compared to the previous quarter. Net financial expenses for the year was $61 million as compared to net financial expenses of $ 100 million in the previous year. to NOK 650 million, up from NOK 599 million in 2000. the best ever posted by this division. in 2000.
