Smedvig Sells West Vanguard to Diamond Offshore

Smedvig has signed a contract for the sale of the semisubmersible, West Vanguard, to Diamond Offshore Drilling Ltd. The agreed sales price is US $68.5 million. The West Vanguard is a third-generation Bingo 3000 designed rig constructed in 1982. The hand-over of the rig is planned for December 2002.

West Vanguard is currently under contract to Norsk Hydro on the Norwegian continental shelf. Smedvig will bareboat charter the rig until the end of the present contract sometime during the second quarter of 2003. Smedvig and Diamond Offshore will cooperate to ensure a smooth transition of management of the rig including arrangements for securing employment for the employees on West Vanguard.

"The sale releases capital for new investment opportunities", says CEO Kjell E Jacobsen in Smedvig.