Vestbase contract extended

June 29, 2005, 12:00 CEST

Hydro is extending an agreement with Vestbase AS in Kristiansund for the delivery of base and logistics services for Hydro's activities in the Norwegian Sea. The contract is for five years with options, and is worth NOK 65 million.

Vestbase has been Hydro's partner in base and logistics services in Kristiansund for four years, serving the company's exploration and production drilling and supplying operations of the Njord platform.

In addition to logistics services, Vestbase will be responsible for spare parts, hiring out personnel and support functions in logistics and supply.

"The cooperation with Vestbase over the last four years has shown that the company operates an effective supply service with good results in health, safety and environment. We look forward to a continued good relationship in the efforts to develop Hydro's activities off mid-Norway," says Erik Abrahamsen, local manager for Kristiansund.

"Hydro is to undertake several large projects in the coming years, both on the Njord field and the Norwegian Sea. We're working on a production drilling campaign that will continue for one year. The Njord platform is being refitted now for gas exports to start in 2007, while we also are working on plans for further development of the area around the field."