West Alliance Released Early from Unocal Contract

Unocal Indonesia has notified Smedvig that they will exercise their right to terminate the contract for the semi-tender West Alliance, effective from mid December 2004.

West Alliance is contracted for production drilling on the West Seno field offshore Indonesia, currently operating on the TLP A platform. The contract also included drilling from the TLP B platform. However, due to postponement of TLP B, West Alliance will be released after completion of the drilling program on the West Seno TLP A.

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