BP Awards Smedvig New Contract

BP in Norway has awarded Smedvig a new long-term production drilling contract for the ultra large jack-up drilling rig West Epsilon on the Valhall Flank in the North Sea. The contract has a firm program of eight wells, estimated to 14 months. In addition, the contract includes an option to extend the agreement with up to 16 wells. In the event of such extension of the drilling program on Valhall Flank, BP has an obligation to employ West Epsilon.

The estimated contract value for the firm period is approximately US$ 50 million. Operations are scheduled to commence in February 2004 in direct continuation of the current contract with BP.