BP Awards West Epsilon Long-Term Contract

BP in Norway has awarded Smedvig a letter of intent for a drilling assignment for the harsh environment jackup drilling rig West Epsilon on the Valhall Flank on the Norwegian continental shelf. The contract has a firm program of eight wells, estimated to 15 months. In addition, there are three optional periods, each consisting of eight wells.

The estimated contract value for the firm period is approximately US $52 million. Operations are scheduled to commence sometime during the period from August to the end of September 2002.