STAVANGER, Norway, April 4, 2003 (PRIMEZONE) -- Smedvig (NYSE:SMVa) (NYSE:SMVb) has been awarded a new contract extension by Brunei Shell Petroleum for the semi-submersible self-erecting tender rig, West Pelaut. The production drilling assignment has a firm duration of five-years, with annual renewal options for another five years. The contract value for the firm period is estimated to approximately US $100 million.
The new contract is scheduled to start in direct continuation of the current contract with Brunei Shell Petroleum, in April 2004. In connection with the new contract extension the unit will be upgraded with a new derrick set which will significantly increase drilling efficiency. The capital expenditure will be some US $20 million. West Pelaut has been employed by Brunei Shell Petroleum since delivery in 1994.
The average contract backlog for the Company's tender rigs, including the new contract for West Pelaut, is 30 months.
"The contract with Brunei Shell Petroleum is in line with our strategy to secure long-term contracts combined with upgrades that improve the operational efficiency and safety of our units," said CEO Kjell E Jacobsen in Smedvig asa.
Analyst Contact: Jim Datland, Investor Relations Manager +47 51 50 99 19 Media Contact: Alf C Thorkildsen, Chief Financial Officer +47 51 50 99 19
Smedvig asa is an offshore drilling contractor headquartered in Stavanger, Norway. The company provides drilling and well services in the North Atlantic and Southeast Asia. Smedvig's main activities are divided into mobile units, tender rigs and platform drilling. Smedvig has a fleet of three modern drilling rigs, one drillship and nine tender rigs and has one tender rig under construction. The company holds contracts for production drilling, well services and maintenance on fixed installations.
This press release includes forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual performance could differ materially from that anticipated in the forward-looking comments, as a result of risks, uncertainties and other factors, as set forth in the annual report on Form 20-F dated June 10, 2002. A copy of the Form 20-F is available upon request from the Company or on our web-site www.smedvig.no.
Smedvig asa: P.O. Box 110, 4001 Stavanger Phone: +47 51 50 99 00 Fax: +47 51 50 96 88 Web site: www.smedvig.no E-mail: smedvig@smedvig.no