Norwegian Offshore Strike Implications for Smedvig

The Norwegian Shipowners Association and the Federation of Offshore Workers Unions (OFS) has not succeeded in reaching agreement at arbitration on the annual settlement. This means that the OFS has called out on strike its members on four rigs. As from July 9, the strike will be extended by one more rig.

For the time being none of Smedvig's mobile units are affected by the strike. However, if the strike is extended, Smedvig's rigs and/or the Company's activities on fixed platforms in the Norwegian sector may be affected.

"If all Smedvig's offshore activities on the Norwegian continental shelf were affected for a period of 90 days, the company would suffer a loss of some NOK 40 million," says Kjell E Jacobsen, Chief Executive Officer of Smedvig asa.