Statoil to Carry Out Repairs to Kollsnes Pipeline in 2008

StatoilHydro, who is operator for the rich gas pipeline from the Kvitebjorn and Visund fields to Kollsnes near Bergen, has decided to repair the line.

Repair work will be carried out in 2008 and gas export from the two fields is halted while work is undertaken.

StatoilHydro has inspected and carried out a technical evaluation after an inspection in October showed that the pipeline had shifted out of position and sustained external damage. It is likely that a ship's anchor has moved and damaged it. This anchor will now be raised and identification attempted.

Production from the Kvitebjorn field has been shut down since May this year for drilling of production wells in parts of the reservoir where the fall in pressure has been greater than expected. Drilling of these wells has been concluded as planned, but production has not recommenced while inspection has been carried out. Gas export from Visund has also been shut down during inspection work.

StatoilHydro has concluded that a repair of the line is necessary. Work is underway to find the best possible solution and timing for fixing the damage.

Kvitebjorn licensees are StatoilHydro with a 58.55% interest, Petoro (30%), Shell (6.45%) and Total with 5%. Visund licensees are StatoilHydro with a 53.20% interest, Petoro (30%), ConocoPhillips (9.10%) and Total with 7.70%.

Consequences for StatoilHydro's production are described in a separate stock exchange announcement on forecasts for 2008.


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