Ormen Lange Contract Awarded to Bredero Shaw Norway

The Ormen Lange license group has awarded the contract for weight coating and anti-corrosion coating of the Ormen Lange pipelines to Bredero Shaw Norway. The contract comprises coating of both the two pipelines from the Ormen Lange Field to the Nyhamna Terminal and the export pipeline from Nyhamna to Easington in England.

Hydro is operator for Ormen Lange during the development phase, including all field development, the onshore gas processing plant at Nyhamna, as well as the export pipeline project. Statoil has the project management of the execution of the gas export pipeline project in cooperation with Hydro. The coating contract, worth about MNOK 1,650, is based on Statoil's frame agreement.

This export pipeline will be the world's longest subsea pipeline with a total length of about 1,200 km, bringing gas from Nyhamna on the northwest coast of Norway via Sleipner to Easington on the east coast of England.

The contract award is conditional on the Plan for Installation and Operation (PIO) and the Plan for Development and Operation (PDO) with submittal in the fourth quarter of 2003, and subsequent governmental approval of the plans.

The pipeline leg from Sleipner to Easington is planned to be ready for operation by October 2006. Production start of the Ormen Lange field is planned for October 2007.

In addition to the Ormen Lange partners, ConocoPhillips will also be an investor in the export transport system. When completed, the new export pipeline from Nyhamna via Sleipner to Easington will be part of Gassled and operated by Gassco.

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 800 to 1,100 meters.

The planned gas export volume to England is about 20 percent of Norway's gas exports and 20 percent of UK gas market demand.

Partners in the Ormen Lange license are Norsk Hydro as operator for the development phase with 17.965%; Shell as operator for the production phase with 17.2%; Petoro with 36%; BP with 10.888%; Statoil with 10.774%; ExxonMobil with 7.182%.

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