Ormen Lange structure installations contract worth NOK 150 million awarded

March 23, 2004, 13:00 CET

The Ormen Lange license group has today awarded the Heavy Lift Structure Installation Contract to Heerema Marine Contractors Nederland B.V. valued in the range of NOK 150 million.

The contract includes the installation of two eight slots templates with integrated production manifolds and the installation of a pipeline end termination bottom structure. The templates each weigh 1,150 tonnes and are 40 meters long and 30 meters wide. All items will be installed in a water depth of approximately 850 metres. The installation work will be performed during the summer of 2005.

Hydro is operator for Ormen Lange during the development phase, including all field development, the onshore gas processing plant at Nyhamna in Mid-Norway, as well as the export pipeline project. Statoil has the project management of the gas export pipeline project in cooperation with Hydro. The contract is based on Statoil’s frame agreement for pipeline installation.

The contract award is conditional on the governmental approval of the Plan for Development and Operation (PDO) and the Plan for Installation and Operation (PIO). Production start of the Ormen Lange field is planned for October 2007.
Ormen Lange is the largest gas field under development on the Norwegian continental shelf. It is located 100 km off the northwest coast of Norway at a water depth of 850 to 1,100 meters.
The partners in Ormen Lange are Hydro (18.0728 %, operator for development phase), Shell (17.0375%, operator for production phase), Petoro (36.4750 %), Statoil (10.8441%), BP (10.3420 %) and ExxonMobil (7.2286 % ).