Ormen Lange Umbilical Contracts Awarded

Ormen Lange
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Hydro on behalf of the Ormen Lange license group today awarded Nexans the umbilical system contract worth about NOK 400 million, and Subsea 7 the contract for installation valued at NOK 150 million.

The umbilical system contract includes delivery of two main umbilicals, approximately 125 kilometers each and one infield umbilical of 4 kilometers. Nexans is responsible for engineering, procurement and construction (EPC) of the umbilicals.

Subsea 7 will install the umbilicals from Nyhamna to the Ormen Lange field during 2006 and 2007.

The umbilicals will supply hydraulic fluid, electrical power and fiber optic signals required to operate the subsea production systems located at a water depth of 850 meters.

With these contracts, the majority of the Ormen Lange offshore contracts are awarded. Fabrication of templates, pipelines and equipment is well underway, as well as seabed preparations between Nyhamna and the Ormen Lange field.

Template and pipeline installation activities starts next year, and production start of the Ormen Lange field is planned for October 2007.

Hydro is operator for Ormen Lange during the development phase, including all field development, the onshore gas processing plant at Nyhamna in Mid-Norway, 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 depth of 850 to 1,100 meters.

Partners in the Ormen Lange license group:

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

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