BJ Wins Cementing Contract for Ormen Lange Field

BJ Services has entered into an agreement with Shell to provide cementing services on the Ormen Lange Field, located approximately 130 km west of Kristandsund, Norway. Water depths in the area where the installations are planned vary from 800 to 1100 meters.

Cementing services will be carried out by BJ Services AS on eight of the 24 planned wells over the course of the agreement. Partners in the development include Shell, Norsk Hydro Produksjon AS, Petoro AS, Statoil ASA, DONG Norge AS and ExxonMobil Exploration and Production Norway AS. Norsk Hydro Produksjon AS is operator of the project, and under a co-operation agreement between Norsk Hydro Produksjon AS and Norske Shell, Norske Shell will execute all well engineering activities during the Project Execution Phase. The Ormen Lange Field contains gas estimated at 375.2 billion Sm3 and 22.1 million Sm3 of condensate, making it the second-largest gas Field in Norway.

Drilling commenced on the project in October 2005. Engineering support services are being carried out by BJ Services AS from the company's Norwegian head office in Tananger, while logistical support is being provided from its support base in Kristiansund.

Further Cementing a Long-term Relationship
The new cementing agreement from AS Norske Shell to service the Ormen Lange Field development is a significant addition to the existing agreements between BJ Services and Shell, which work together in many countries on every continent across the world. Earlier this year, BJ Services was awarded an exclusive five-year contract by Shell U.K. Limited to provide coiled tubing, stimulation and nitrogen services throughout Europe. The new contract, which includes two one-year options to renew, requires BJ Services to provide services primarily in the UKCS, on and offshore Holland, offshore Norway and Ireland.

BJ Services AS began working in Norway for AS Norske Shell in the 1970s, with the provision of acidizing and stimulation services on the Albuskjell Field. BJ Services AS began expanding these services for AS Norske Shell into the Barents Sea during the late 1990s. Since 2003, BJ Services AS has been performing challenging coil tubing services on Shell's Draugen Field in the North Sea.