Development project sanctioned in US Gulf of Mexico

The Anadarko operated Caesar Tonga development consists of three discoveries, Tonga and Tonga West which were acquired in 2005 as part of the EnCana acquisition and Caesar which was acquired from Plains in 2006 .

The three discoveries have been combined into one project to be developed as a subsea tie-back to the Anadarko operated Constitution Spar. StatoilHydro has 23.55% working interest in the development. Other co-owners are Shell and Chevron.

"We are very excited to start another development in this promising area," says StatoilHydro's asset manager Randy Perry. "

Caesar Tonga is located just south of the Tahiti development which will come on stream this summer.

We are expecting similar sand qualities which should give us good recovery rates from the field," he adds.

The initial phase of development will consist of four wells with a combined average production of 40,000 BOPD with first oil expected in 2011.

This will be the first project which StatoilHydro's Houston office has moved from exploration to execution.