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Hydro acquires equity in exploration block outside Madagascar

August 17, 2004, 12:45 CEST

Hydro entered into an agreement with Vanco on 12 August 2004 for a farm-in consisting of a 30 percent equity share in the Majunga block off northwestern Madagascar.

The exploration block covers an acreage of 17.800 km2 in deep waters which are relatively unexplored.

Although it is a high-risk investment, Hydro's exposure is relatively low as the block does not include a well commitment in the current exploration period.

Together with the other partners, Hydro has initiated acquisition of 3D seismic in order to evaluate the prospectivity of the block, which will form the basis for a potential decision whether to proceed and drill exploration wells. 

Potential drilling on the block will take place in 2006 at the earliest.

Block participants:

Vanco Madagascar Ltd. (operator)

 30%

ExxonMobil

 40%

Norsk Hydro

 30%