Smedvig Secures Modification Contract on the Statfjord Field

Smedvig has been awarded a letter of intent by Statoil for modification of the drilling facilities on Statfjord B and C on the Norwegian continental shelf. The contract, which is a part of Statoil's late life development project of the Statfjord field, has a duration of approximately three and a half years. Commencement is scheduled for April 2005, and the estimated contract value is approximately NOK 600 million.

Smedvig's engineering department, Smedvig Engineering, will carry out the modifications on Statfjord B and C. In addition to the Statfjord contract, Smedvig Engineering, is responsible for modification and upgrading of the drilling facilities and related systems on Gullfaks A, B and C, Veslefrikk, Ula, Valhall IP, Gyda and Ekofisk on the Norwegian continental shelf and on Shell's 12 platforms on the UK continental shelf.

Smedvig has held the platform drilling contract on the Statfjord field since 1984 and will continue to carry out drilling operations on all three Statfjord platforms during the next four years.

Today, Smedvig employs approximately 1000 people within the business unit Well Services on the Norwegian continental shelf, which includes the approximately 200 people involved in the new Statoil contract.

Kjell E Jacobsen, CEO in Smedvig asa, says: "The new contract on the Statfjord field is a breakthrough for Smedvig's activities within the upgrading and modification market on fixed installations. The contract is a long-term and solid contribution to Smedvig's further development in this market".