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Ormen Lange: Agreement on NOK 4.3 billion contract reached

September 3, 2004, 16:00 CEST

Hydro has on behalf of the Ormen Lange license partners signed a Letter of Intent with Aker Stord AS for the construction and installation of the main part of the land-based facility at Nyhamna in Aukra municipality in northwestern Norway. The contract is worth some NOK 4.3 billion.

The contract covers all disciplines within process and utility systems, including civil work, steel structures, pipe work, HVAC, mechanical installations, electrical installations and instrumentation, and insulation and surface protection.

Aker Stord will also assist Hydro during  commissioning and the start up.

The contract  comprises a total of approximately 4.2 million hours, some 3 million of which will be carried out at Aukra and includes such tasks as fabrication and installation of  7,000 tons of steel structures and 9,000 tons of pipe systems, and the installation of some 1,300 kilometers of cable.

Parts of the work will be subcontracted to both Norwegian and international suppliers.

This includes the prefabrication of pipe and steel structures, the assembly of  large  pipe systems, as well as civil work.

Aker Kværner was previously awarded two large contracts for the Ormen Lange project - the contract for design (engineering &procurement) of the land-based facility at Aukra, and the first large engineering, procurement and construction contract for the of the gas receiving and export system facilities, including the slug catcher and flare tower.
The parties will now evaluate  synergies  for a possible  l merging of the contracts.

The remaining contracts for the onshore facilities and gas terminal  at Nyhamna will be awarded during 2004. This includes the MEG regeneration system and the corresponding process facilities and the administration building.

Hydro is operator for Ormen Lange during the development phase, including all field development, the gas processing plant at Nyhamna, as well as the export pipeline project - Langeled.

Ormen Lange is the largest gas field under development on the Norwegian continental shelf. It is located 100 km off the northwest coast of Norway at a water depths of 800 to 1,100 meters. The field comes on stream in October 2007.

Partners in the Ormen Lange license group:

Hydro (operator for the development phase) 18.0728 %
Shell (operator during the operational phase) 17.0375 %
Petoro 36.4750 %
Statoil 10.8441 %
BP 10.3420 %
ExxonMobil 7.2286 %