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Many awards for Hydro in mature areas on the Norwegian continental shelf

January 30, 2007, 00:00 CET

The Ministry of Petroleum and Energy announced on 29 January that Hydro has been awarded seven new licences in the annual awards for the mature areas on the Norwegian continental shelf, the Awards in Predefined Areas (APA) 2006.

"We are happy with the award," says Lars Christian Alsvik, head of the Development Norway sector in Hydro's Oil & Energy business area.

In connection with the APA 2006, Hydro has been offered operatorships in four production licences and to participate in three licences.

"This underlines Hydro’s willingness to explore and develop resources in the mature areas of the Norwegian continental shelf," Alsvik comments.

Further development of Hydro’s core areas is an important part of the company’s efforts on the Norwegian continental shelf. High oil prices and well-developed infrastructure create the basis for continuing intense exploration activity in these areas. The award can contribute to increased production and extended operating time for the existing installations both in the North Sea and the Norwegian Sea.

Extensive application

Hydro submitted an extensive application in the annual APA round, and the award can be seen as positive feedback on the work that was done during the application process. Hydro also enjoyed good results in the 19th licensing round, and will intensify exploration activities significantly in 2007.

"Hydro has a number of long-term rig contracts, and is therefore well placed for new exploration tasks, but we need a steady supply of new opportunities in order to be able to keep up a high level of activity over several years. We still have great faith in the Norwegian continental shelf," Alsvik stresses.

An impressive total of 43 companies applied for production licences in the mature areas on the Norwegian shelf in this APA round.

"This reflects the great interest that currently exists for exploration acreage on the Norwegian continental shelf. The APA awards confirm Hydro’s position as an active exploration company on the Norwegian continental shelf," Alsvik states.