PWS awarded well testing contract

January 19, 2006, 00:30 CET

Hydro has awarded Power Well Services Norway (PWS) a well testing contract in connection with exploration drilling on the Norwegian Continental Shelf. The contract is worth around 100 million NOK.

The parties signed a letter of intent on Friday concerning the contract. The framework agreement which will be entered into includes providing equipment and services for well testing and cleaning on the Norwegian Continental Shelf. The service includes equipment for downhole and subsea well testing, as well as temporary production testing.

PWS bought up a section of Halliburton's well testing unit in 2004, so the contract also means a continuation of the earlier supplier collaboration with Hydro within the area of well testing.

The estimated value of the contract is 100 million NOK, for the course of its three-year term. The agreement gives the companies the opportunity to extend the contract for up to six years, divided into three two-year periods.

Significant drilling activity
Hydro had significant drilling activity in 2005, with three drilling rigs on the Troll-field and two in the Oseberg area, as well as five drilling operations on the fixed installations.

In 2006, activities on the Norwegian Continental Shelf will be stepped up still further. Hydro will participate in 15 new fields under development on the Norwegian Continental Shelf, and plans to drill 40 exploration wells in the period 2006-2007.

For parts of the year, seven drilling rigs will be in use, in addition to six drilling operations taking place on the fixed installations.