Smedvig Sells West Vanguard

Smedvig has signed a contract for the sale of the semi-submersible drilling rig West Vanguard to Diamond Offshore Drilling Ltd. The agreed sales price for the drilling rig, which was built in 1982, is $ 68.5 million. The hand-over of the rig is planned for December 2002. West Vanguard is today assigned to Norsk Hydro on the Norwegian continental shelf. Smedvig will bareboat charter the rig until the end of the present contract. Smedvig and Diamond Offshore will cooperate to ensure a smooth transition of management of the rig including arrangements for securing employment for the employees on West Vanguard. "The sale releases capital for new investment opportunities", says CEO Kjell E Jacobsen in Smedvig.