Hydro extends Troll Oil rig contract

July 2, 2003, 10:00 CEST

On behalf of the partners, Norsk Hydro has signed a contract to extend the period for which the Polar Pioneer drilling rig is hired from Transocean Sedco Forex. The contract is valued at NOK 160 million and the extended hire period will run from 1 January to 1 September 2004.

Polar Pioneer was hired during 1994 to pre-drill production wells on Troll Oil, since which time the rig has been in operation almost continuously. The development of advanced drill and well technology has helped to make Troll Oil the most productive field on the Norwegian shelf, with a daily production of some 400,000 barrels per day. Hydro currently produces oil from 98 production wells on Troll Oil, 26 of which have two or three branches into the reservoir. This helps to reduce drill costs and increases the recovery of oil reserves.

Hydro plans to have two drilling rigs in operation on Troll Oil in the immediate future in order to ensure a continued high level of production and value creation on the field.