Smedvig Awarded New Contract for West Navion

A letter of intent has been awarded to Smedvig by Esso Norge AS for the assignment of the deepwater drill ship West Navion.

The contract includes drilling of one deepwater exploration well in 4,430 feet of water in the Norwegian Sea. The estimated contract value is approximately US $19 million. The drilling period is estimated to approximately three months. Start-up of operations is scheduled in direct continuation of the drilling assignment for Amerada Hess, anticipated in August 2002.