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Collaboration with Hydro over Saga

May 27, 1999, 01:00 CEST

An agreement has been concluded by Statoil, as the largest shareholder in Saga Petroleum, and Norsk Hydro in connection with the latter company's bid to acquire all the shares in Saga.

Providing the planned offer to swap three Saga shares for one Hydro share is accepted by the Saga shareholders, today's deal means that Statoil will take over about 25 per cent of Saga's assets.

These transactions have an overall value of about NOK 7 billion. They are all being made at market value.

"We'll increase our holdings in the core areas we've prioritised on the Norwegian continental shelf," says Statoil chief executive Harald Norvik.

"These are the Troll field, the Tampen Wedge area of the northern North Sea and the Halten Bank in the Norwegian Sea.

"The deal will secure higher production as well as good coordination and enhanced efficiency in those areas off Norway where we already have our largest strategic interests.

"And it helps to ensure that we retain our position as the leading oil and gas company on the Norwegian continental shelf."

In addition to acquiring Saga assets, Statoil will take over as production operator for Snorre and Visund on 1 July 2003. Output from these Norwegian North Sea developments is already linked to Statoil's Statfjord and Gullfaks fields.

Hydro and Statoil have agreed that this adjustment in operatorships ensures the best possible improvement in production coordination of oil and gas fields off Norway.

Statoil is also due to take over from Saga as operator for the Kristin field on Halten Bank South and for continued development of this area and Norne South further north. In addition, the group will gain an interest in deepwater acreage on the Gjallar Ridge in the Norwegian Sea.

The most important assets due to be transferred to Statoil under the present agreement are:

  • six per cent of Gullfaks
  • 2.04 per cent of Troll
  • nine per cent of Norne
  • five per cent of Norne South
  • eight per cent of Halten Bank South
  • 1.88 per cent of Statfjord
  • three per cent of Snorre
  • 15 per cent of the Gjallar Ridge
  • 21 per cent of Corrib off Ireland.

The agreement on sharing out assets and transferring operatorships is subject to approval by the Norwegian authorities

Further information from: John Ove Lindøe, tel: +47 51 99 68 81 or Wenche Skorge, tel: +47 51 99 79 17