Ormen Lange Partners Choose 'Subsea to Land Concept'

Ormen Lange license participants have selected the "Subsea to Land Concept" for the Ormen Lange deepwater gas project off mid-Norway. After nearly three years of studies, consultation and investigations, the Ormen Lange License has decided that the 2003 development application to the authorities will be based on: "Subsea production to a new onshore gas processing plant at Nyhamna in the municipality of Aukra, which is part of More and Romsdal county."

This decision, supported by all partners, is based on an overall assessment of the Environmental, Technical, Safety, Social and Economic issues.

Production start for Ormen Lange is planned for October 2007, based on the Plan for Development and Operation (PDO) submitted in 2003, and construction slated to begin in 2004. Development of Ormen Lange also requires construction of the largest pipeline on the Norwegian Continental Shelf.

The total Ormen Lange investment, both field development and transportation pipelines, is estimated to be approximately NOK 55 billion fixed 2002 money. Gas production is scheduled to continue for 30 to 40 years, and during the peak production period, the field is expected to produce a minimum 20 billion Sm3 per year, about 20 percent of total anticipated Norwegian gas production in 2010. The onshore plant will create about 100 full time employment opportunities throughout the operations phase.

Ormen Lange development studies have been ongoing since early 2000, and all possible development options (including offshore processing) have been thoroughly evaluated. The operator, Norsk Hydro ASA, originally presented its concept selection recommendation to the license partners on September 26, 2002. Since then, the partners have endorsed the Operator's recommendation which has been confirmed to be based on a total assessment of environment, safety, social and economic issues.

The Ormen Lange field is the largest undeveloped gas field on the Norwegian Continental Shelf. The field is located 100 kilometers northwest of the More and Romsdal coast, at a water depth of some 1,000 meters. The estimated gas reserves are 375 billion Sm3 of dry gas and 22 MSm3 of condensate.

Participants in the Ormen Lange license are Norsk Hydro ASA, 17.956 percent (Operator in the development phase); A/S Norske Shell, 17.2 percent (Operator in the operations phase); Petoro, 36 percent; Statoil ASA, 10.774 percent; Esso Norge AS, 7.182 percent and BP, 10.888 percent.


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