Smedvig Strengthens Joint Venture in Malaysia

The Smedvig and Crest Petroleum joint venture, Varia Perdana, has entered into agreements to acquire the self-erecting tender rigs T-9 and Teknik Berkat. The total consideration for these two units is US$ 95 million. Smedvig has a 49 percent ownership share in Varia Perdana, which owns the tender rigs T-2, T-3 and T-6.

T-9 is currently under construction for Smedvig in Malaysia. The delivery of this unit is scheduled for the first quarter 2004 at which point Varia Perdana will take over ownership of the unit. The agreed purchase price is US$ 70 million.

Teknik Berkat was completed in 1991 and is owned by Crest Petroleum, Smedvig's joint venture partner. The agreed purchase price for the unit is US$ 25 million.

"This provides for a consolidation of the tender rig activities in Malaysia and forms a platform for further growth", says Smedvig's CEO Kjell E Jacobsen.

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