Ormen Lange contract worth NOK 660 million awarded

May 27, 2004, 12:45 CEST

Hydro on behalf of the Ormen Lange license group has today awarded the deep water pipelines installation and tie-in contract to Saipem UK Ltd. valued around NOK 660 million.

The contract includes installation of two multiphase production pipelines in the deep water section of the Ormen Lange field development. Tie-in operations is also part of the contract scope.

Saipem shall retrieve the two pre-installed 30-inch pipelines at the Storegga Area approximately 100 kilometres from Nyhamna and continue laying down the Storegga slide to the Ormen Lange field. The Ormen Lange field is located on 850-1100m water depth.

The installation and tie-in work will be performed during the spring, summer and autumn of 2006, with possible carry over work in 2007.

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.

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.

Partners in the Ormen Lange license group:

Hydro (operator for the development phase) 18.0728 %
Shell (operator for the operational phase) 17.0375 %
Petoro 36.4750 %
Statoil 10.8441 %
BP 10.3420 %
ExxonMobil 7.2286 %