Hydro Oil & Energy increases annual production growth rate

June 12, 2002, 01:00 CEST

Hydro has revised its production profile and average annual production growth rate during the period 2001 to 2005 to 8%. This is a substantial increase from the previously reported 5 - 6%.

The purchase in March, from the Norwegian State Direct Financial Interests (SDFI) of eight production licences in the Oseberg, Tune and Grane fields, is the main reason for adjusting the production growth rate.

The purchase is now fully approved and completed. The deal increases Hydro's interests in these fields, which they operate, to 34% in Oseberg, 40% in Tune and 38% in Grane.

The additional production will be incorporated into Hydro's results from May 10 and will result in raising Hydro's forecast production target for this year from 430,000 barrels of equivalents per day (boe/d) to 455,000 boe/d. The production estimate is based on Norwegian production curtails for the first six months of this year.

Approximately 12% of Hydro's total production in 2005 is forecast to come from outside of Norway.

"We expect to see an increasing part of our production, investments and activity in areas outside of Norway in the years to come", said President of Hydro's Oil and Energy business unit, Tore Torvund.

"At the same time we are confident that Hydro’s positions in deep water on the Norwegian Shelf and downstream into the European gas market, will provide good business opportunities for the company", he said.