Smedvig Sells Ownership Share in Roxar

Lisme, in which Smedvig owns 44 percent, has entered into an agreement to sell the subsidiary Roxar to FlowInvest Acquisitions AS, a company within the Arcapita Group. Based on a book value of approximately NOK 150 million, the gain on sale for Smedvig is estimated to approximately NOK 350 million. The gain will be included in the fourth quarter 2005 accounts under other financial items.

Final closing of the transaction is expected to take place by the end of December 2005, subject to governmental approval.