Smedvig has entered into an agreement with Malaysia Shipyard and Engineering Sdn Bnd in South Malaysia for the purpose of building a new self erecting tender rig. The new unit is scheduled for delivery in the first quarter 2004, and capital expenditure is estimated to approximately US$ 67 million, including the derrick equipment set. The tender rig will be based on a new design developed by Smedvig, with enhanced drilling capabilities allowing for parallel activities, which will significantly increase drilling efficiency. The new unit will be particularly well suited for production drilling in shallow and deepwater areas in Southeast Asia. "This investment reinforces our position as the leading tender rig operator and will expand our activities in one of the fastest growing energy markets in the world", says CEO Kjell E Jacobsen in Smedvig.