Norsk Hydro awards Ormen Lange contract to Aker Kvaerner

March 12, 2003, 09:00 CET

As operator for the development of the gas field Ormen Lange, Norsk Hydro on behalf of the license participants intends to award the contract for engineering and design of the onshore processing plant at Aukra to Aker Kvaerner. The contract is valued at roughly NOK 950 million.

The contract comprises FEED, engineering, procurement and construction management assistance for the client, Norsk Hydro. The decision has been based on an overall assessment of competency, quality, schedule, as well as on economic, technological, plus health, environmental and safety factors.

The engineering and design comprises further detailing of the technical onshore concept and the provision of best possible basis for establishing an Ormen Lange investment decision cost estimate prior to the PDO submission.

The Nyhamna development, due for completion when the Ormen Lange field comes on stream in 2007, includes process plant,  utility systems, slug catchers, tank farm, plus power supply and distribution. EPC contracts for these installations will be awarded in 2004-2005.

In addition to the field development, consisting of subsea and onshore installations, Ormen Lange also comprises the most extensive gas export system so far installed on the Norwegian continental shelf. The total Ormen Lange investment, including both the field development and transportation pipelines, is estimated to be approximately 55 billion in fixed 2002-NOK.

Gas production is scheduled to continue for 30 to 40 years and, during the peak production period, the field is expected to produce 20 billion Sm3 per year, about 20 percent of the total anticipated Norwegian gas production in 2010.

The estimated gas reserves on Ormen Lange are 375 billion Sm3 of dry gas and 22 MSm3 of condensate, making it the largest undeveloped gas field on the shelf. The field is located 100 kilometers off the coast of Møre and Romsdal, at a water depth of some 1,000 meters, and is the first deep water development project on the Norwegian Continental Shelf.

Participants in the Ormen Lange license:

  • Norsk Hydro ASA, 17.956 percent (Operator in the development phase)
  • A/S Norske Shell, 17.2 percent (Operator in the operations phase)
  • Petoro a.s, 36 percent
  • Statoil ASA, 10.774 percent
  • Esso Norge AS, 7.182 percent
  • BP, 10.888 percent