Fortum Acquires Stake in Mikkel Field

Fortum Petroleum AS has acquired a 7 percent interest in the Mikkel gas and condensate offshore field on the Haltenbanken area from Statoil. This deal strengthens Fortum's upstream position on the Norwegian Continental Shelf in its core Haltenbanken area.

The Mikkel stake will increase Fortum's oil and gas reserves by 12-15 million barrels of oil equivalents, and increase production by 3500 barrels of oil equivalent per day. The field is currently under development and is due to come on stream in October 2003.

Fortum's total investments in the participating interest and field development are expected to be around 30 Million Euros. The Mikkel field lies at the Haltenbanken offshore coast of mid-Norway some 35 kilometers south of the Midgard deposit in the Asgard license. The field will be developed as a subsea system with the wellstream transferred to Asgard B platform via Midgard. Fortum has a 7 percent stake in the Asgard field.

The purchase of the interest in the Mikkel field strengthens Fortum position in its core area in Haltenbanken. The Mikkel gas will be transported through the Asgard Transport trunkline to the processing plant at Karsto north of Stavanger. The condensate will flow through an existing line to the Asgard C storage vessel for export. The deal is subject to the approval of the Norwegian Authorities.