Selling West Navigator stake

September 8, 2004, 10:05 CEST

A letter of intent has been concluded by Statoil covering the sale of its 50 per cent interest in the West Navigator deepwater drill ship to Smedvig of Stavanger.

The agreed purchase price is USD 175 million. Under the agreement, Smedvig will receive Statoil’s share of cash flow from the vessel from 1 May 2004.

“Ownership of mobile drilling units is not defined as part of our core business,” says project manager Arne Wyller Christensen at Statoil.

“We have accordingly evaluated the sale of our interest in West Navigator, and recent market developments have helped us to secure an acceptable price for our holding.”

Current charters held for the drill ship provide it with employment until the fourth quarter of 2007.

The agreement is conditional on board approval.