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Hydro awarded 30% share of Block 34 off Angola

September 10, 2001, 01:00 CEST

Hydro signed a production sharing agreement for Block 34 last Friday with the Angolan state oil company Sonangol. Sonangol has been given the operatorship, and Hydro will provide technical assistance.

This is the first time Sonangol has been given an operatorship for a deep water license, and in cooperation with and
supported by technical assistance from another company. The other participants in the license are Phillips, Braspetro and Shell.

"This is a major step for Hydro's Oil and Energy business area. It really shows that Hydro is competitive in the international arena," said Hydro Oil and Energy executive vice president Tore Torvund, who signed the agreement on Hydro's behalf.

Also present for the signing ceremony were Sonangol president and CEO Manuel Vincente, Sonangol P&P president Gaspar Martins, Phillips senior vice president worldwide exploration Dodd DeCamp, Shell Development Angola general manager Luuk H. Karsten, and Braspetro Angola general manager Renato Pimenta De Azevedo.

By giving the operatorship to Sonangol, Angola is taking a big step toward realizing its ambitious goal to develop the company into
highly competent national oil company and to develop the Angolan oil industry.

In providing technical assistance, Hydro will be integrated in the Sonangol project and contribute to designing and implementing the operational activities. Hydro will strengthen its staffing in Angola. Sonangol and Hydro will continue the program Management and Technology Transfer, which was initiated in 1998.

Seismic data have already been collected and processed, and preparations for drilling the first well - which is expected to be
finished in the first half of 2002 - have been initiated.

"Angola is one of the most important areas for Hydro's international oil and gas activities. The award of a 30 percent share in Block 34 and the role as technical assistant represents a considerable step forward in our ambition to continue the development of Angola as one of our main core areas," says Torstein Dale Sjøtveit, head of Hydro's operations in Angola.

Block 34 is south of Block 17 and covers an area of 5,900 square kilometers. The water depth ranges from 1,500 to 2,500 meters.

 

Participants:

Sonangol (operator): 20 %
Hydro (technical assistant) 30 %
Phillips 20 %
Braspetro 15 %

Shell

15 %