Smedvig and Unocal Form Deepwater Drilling Project for SPU 550.STAVANGER, Norway--(BUSINESS WIRE)--September 19, 1997--Smedvig asa has signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. (MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. ) with Union Oil Company of California (Unocal) for an engineering project to provide a deepwater drillship for the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of MexicoGolfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . The agreement is based on the potential conversion of the SPU SPU Seattle Pacific University SPU Seattle Public Utilities SPU Strategy and Policy Unit SPU Sripatum University (Thailand) SPU Split, Croatia (Airport Code) SPU Synergistic Processor Unit 550 to a drillship. Subject to settlement on terms and conditions and approval by the boards of both companies, the MOU will form the basis for a five year drilling contract. The drillship will be designed to operate in 10,000 feet of water depth with capabilities for test production in addition to drilling operations. The SPU 550 is owned 50 percent by Norway's Rasmussen group and 50 percent by Smedvig. On October 1st the Rasmussen ownership share will be transferred to Navion, a company owned 80 percent by the Norwegian state oil company Statoil and 20 percent by Rasmussen. The SPU 550, a Tentech 700 design now under construction in Japan, is due for delivery from the yard, exclusive of drilling equipment, in November 1997. After delivery from the yard, and subject to the award of a final contract by Unocal, the vessel will be converted and outfitted as a drillship. Drilling operations are due to start late 1998 or early 1999. "This agreement reinforces Smedvig's strategy as a leading developer of technologically advanced deepwater drilling units. It also strengthens Smedvig's relationship with Unocal, which goes back to 1972 when the company was awarded the first drilling contract in its history, for West Venture on the UK continental shelf," says CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Ole Melberg. Smedvig asa is an integrated industrial offshore company offering services within well construction, mobile production and reservoir and well technology. It owns and operates mobile drilling units and holds contracts for production drilling, well services Well services is a department within a petroleum production company through which matters concerning existing wells are handled. Having a shared well services department for all (or at least multiple) assets operated by a company is seen as advantageous as it allows the pooling of and maintenance on fixed installations in the North Sea. In addition, the Company also pursues substantial production drilling operations in South-East Asia. Smedvig is involved in mobile production solutions with the water injection platform West Omikron and the production vessels Balder FPU (Floating Point Unit) A computer circuit that handles floating point operations. FPU - floating-point unit . On the technology side, the Company is engaged within resource assessment and reservoir management, well technology and reservoir monitoring. CONTACT: Smedvig asa Mr. Ole Melberg, Chief Executive Officer Mr. Ole Gladhaug, Chief Financial Officer Ms. Merete Svendsen, Investor Relations Investor relations The process by which the corporation communicates with its investors. Manager (tel. 47 51 50 99 00) |
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