Fram Vest letter of intent to Coflexip

July 13, 2001, 01:00 CEST

Norsk Hydro has awarded a letter of intent to Coflexip Stena Offshore Norge for Engineering, Procurement, Fabrication and Installation of Flowlines, Risers and Service Umbilical for the Fram Vest field. Contract Award is scheduled for early August.

The contract, with an approximate value of NOK 640 million, includes engineering, procurement, fabrication and installation of two 25-kilometer flowlines, flexible risers and service umbilical. These will after installation connect the Fram Vest field to the Troll C platform where all processing and well control will be performed.

Four companies have competed for this contract and the letter of intent is based on a total evaluation of quality and price where Coflexip had the most competitive offer.

Fram Vest is located approximately 20 kilometers north of the Troll C platform in the North Sea in water depth of approximately 360 meters. Fram Vest will be developed with two four-slot sub sea well templates. The templates will be tied in to the Troll C platform with two flow lines (gas injection and production) and a service umbilical.

The well stream from Fram Vest will be routed to a dedicated three phase separator on Troll C. Oil and Gas will be routed via fiscal metering stations into the existing Troll C facilities for further processing.

Previously, the contract for modifications to the Troll C platform has been awarded to Aker Maritime and the contract for subsea equipment to FMC Kongsberg under Norsk Hydro's frame agreement with this contractor.

The PDO for the Fram Vest field was approved by Norwegian authorities in March 2001. Production from the Fram Vest field is scheduled to commence October 2003 and will have a plateau production of more than 60,000 barrels oil per day. Total investments in the Fram Vest development is estimated to be NOK 4 billion.

The lisensees are Hydro (operator) with 25%, ExxonMobil 25%, Statoil 20% and Petoro (State's Direct Financial Interest) 30%.