Revised Schedule Decided for Valhall Redevelopment

Following extensive assurance processes of the project schedule, the partnership has changed the time for installation of the new Valhall platform to 2Q 2009. This is an adjustment from 3Q 2008 to ensure a safe and well executed project.

The change in time of installation of the new platform will not result in significant changes to the rest of the former schedule. In near terms concept selection will be deferred by approximately 2 months to allow for orderly decisions on power from shore and concept selection. The other major milestones in 2005 (start of front end engineering design (FEED)), detailed engineering and submission of Plan for Development and Operations (PDO) will change accordingly. The remaining differences between 2008 and 2009 are time to ensure a quality project and avoid having a too tight schedule, resulting in a schedule driven project.

The new schedule is:

February 2005 - Feed contractor award
February 2005 - Concept selection
Year end 2005/January 2006 - PDO submission to the Ministry of Petroleum and Energy
January 2006 - Start of detailed engineering

"The schedule change was agreed in a partner meeting on December 14th. We are already in the process of manning up the project organization and selecting contractors for performing the engineering work. The decision to start up in 2009 is not a softening of our commitment to complete the project -rather a result of assurance that we can deliver on our commitments. ", says Eivind Hansen Valhall Performance Leader.

Based on start up 2Q 2009 the total project cost is estimated to NOK 6 billion.