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Development of the Ormen Lange field

November 15, 1999, 00:00 CET

The equity holders in the three licences which encompass the Ormen Lange field have today submitted to the Ministry of Petroleum and Energy their proposal concerning unit operatorship and organisational structure for the development of the Ormen Lange gas field. The owners have reached an agreement on many aspects relating to the development of the field, but no agreement has been reached on overall Unit Operator. Norske Shell and Norsk Hydro have both proposed that they will take on the role as Unit Operator for the total Ormen Lange field.

The equity holders agree that the field will be developed as one unit and the considerable amount of experience and competence within the various companies should be exploited to get the best possible solution for the Ormen Lange field. The field will be developed as quickly as is technically and commercially feasible after gas sales agreements have been made.

Ormen Lange consists of three licences:

PL 209

Hydro - Operator: 25%
Shell: 15%
Statoil: 15%
Esso: 10%
SDØE: 35%

PL 208
BP Amoco - Operator: 45%
Shell: 25%
SDØE: 30%

PL 250
Shell - Operator: 16,00%
Hydro: 14,78%
BP Amoco: 9,44%
Statoil: 8,87%
Esso: 5,91%
SDØE: 45,00%

Gas reserves: Currently expected to be in the range of 300-400 billion cubic metres.
Three wells drilled: Two in PL 209 and one in PL 208.
Further appraisal wells required.