Norsk Hydro Reduces 2006 Oil & Gas Estimates

Norsk Hydro ASA

Norsk Hydro ASA has reduced its oil and gas production estimates for 2006 with 2.6 percent, from 585,000 to 570,000 barrels of oil equivalents per day (boed). About two-thirds of the reduction from estimates announced in June is related to production from Hydro's Norwegian portfolio.

The main reasons for the adjustment are delayed production build-up from the Kristin field and a lower than expected gas production from Kvitebjorn and Troll. Drilling capacity restraints on the Norwegian Continental Shelf is also leading to deferred production on other fields.

Production delays in Hydro's international portfolio, mainly related to Terra Nova in Canada and fields in the US Gulf of Mexico, also affects the estimates.

Hydro's oil and gas production in the third quarter 2006 is estimated to 552,000 boed of which 31 percent was gas.