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Purchasing casing and production pipes for NOK 3 billion

September 8, 2006, 15:30 CEST

Hydro has awarded the company Mitsui & Co. Norway a framework contract for delivery of casing and production pipes, and accompanying services, for all of Hydro's drilling operations on the Norwegian continental shelf. The total value of the contract is NOK 3 billion.

The contract runs for a period of four years, and has options for extension by up to four years.

Mitsui is to deliver casing and production pipes from Japan and the UK, in addition to services linked to storage, preparation and machine workshop services in Norway.

The framework contract only covers Hydro's activities on the Norwegian continental shelf, but it includes an option for enlargement to also include the company's international activities.

High drilling activity
Both in Hydro and the rest of the oil industry there is currently high drilling activity, which contributes to high demand for casing and production pipes - the products this contract applies to.

Hydro's drilling activity on the Norwegian continental shelf is set to increase still further in 2007. At its height, eight parallel drilling operations will take place, from hired drill rigs. In addition, drilling is planned from six fixed installations.

Drilling activity will be highest in the Troll region of the North Sea, where three drilling rigs will be in operation simultaneously. The Fram and Oseberg areas will also have hectic drilling activity.