Subsea 7 awarded NOK 420 million Oseberg Delta contract

February 1, 2006, 17:00 CET

Hydro has awarded the contract for pipelines and control cables for the Oseberg Delta project in the North Sea toSubsea 7. The satellite field, which is located close to Oseberg Field Centre, is being extended by adding a new template to the sea bed. Production is scheduled to start in the autumn of 2007.

The contract with Subsea 7 includes engineering, procurement and construction for the design, purchase and installation of a 10-inch transportation pipeline to run between the subsea structure Oseberg Delta and the Oseberg D platform, as well as a control cable to run between the Oseberg A platform and Oseberg Delta.

The distance between Oseberg Field Centre and the subsea structure — where the cables will be laid — is around nine kilometres.

Subsea 7 is to carry out the actual construction of the pipelines at its own production workshop, while the control cable will be obtained through a sub-contract with Aker Kværner.

The installation tasks in the field include placement, embedment, connection, protection and covering of the cables.

The pipelaying vessel “Skandi Navia” and the construction vessel “Nordica ”, both operated by Subsea 7, will play a central role during the installation period in the field, which is located around 150 kilometres west of Bergen.

The planning, design and procurement work starts immediately. The construction work will take place during the winter of 2006—2007, while the actual installation work in the field is scheduled for the summer of 2007. All work in the field is due to be completed by the end of August 2007.

The field’s recoverable reserves are estimated to amount to around eight billion cubic metres of gas and 17 million barrels of condensate and oil.

The planned investments in Oseberg Data total around NOK 1.8 billion.

The field will be an important contributor to the further development of the Oseberg area. It is anticipated that Oseberg Delta will remain in production until 2014.