Smedvig Receives Contract Extension for T-2 Tender

Smedvig has signed an agreement with Esso Production Malaysia Inc. to extend the production drilling contract for the self-erecting tender rig T-2. The extension has a duration of one year, from January 2004, including options for another two years. The estimated contract value is approximately US$ 18 million.

The contract extension is subject to a substitution of rigs. In April/May, 2004 T-2 will be replaced by T-9 which is currently under construction in Malaysia.

The T-9 is based on a design developed by Smedvig, with enhanced drilling capabilities allowing for parallel activities, which significantly increases drilling efficiency.