ORMEN LANGE PDO AND LANGELED PIO SUBMITTED TO THE MINISTRY

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ORMEN LANGE PDO AND LANGELED PIO SUBMITTED TO THE MINISTRY
04 December 2003 - Hydro Aluminium

Norsk Hydro – with unanimous participant support in the Ormen Lange license and the Langeled Joint Venture – has submitted the Plan for Development and Operation (PDO) for field development and the Plan for Installation and Operation (PIO) for the transport system to the Norwegian Ministry of Petroleum and Energy.

The Ormen Lange field, discovered by Norsk Hydro in 1997, is located in the Norwegian Sea, 100 km of the northwest coast off Norway. The water depth is 850 to 1,100 metres, making Ormen Lange the first real development in Norway in these water depths. With recoverable gas estimated at 397 billion Sm3 and 28.5 million Sm3 of condensate, Ormen Lange is the second-largest gas field in Norway. Nyhamna, on the west coast of Norway, has been selected as the site for an onshore processing plant. From Nyhamna, the gas will be exported in a new pipeline via the Sleipner riser platform in the North Sea to Easington on the east coast of England.

The total investment cost for the Ormen Lange project development, from reservoir to market, is estimated at NOK approx. 66 billion (2003) – approx. 46.5 billion NOK for the field development and approx. 19.5 billion NOK for the transport system. The major part of the investments will take place in 2005 and 2006.

The development plan for the Ormen Lange field offers improved economics when compared with the concept selection basis of a year ago, even though the investment level has increased. This is due to an increase in recoverable reserves, increased production level, higher processing capacity, higher transport capacity and more flexibility in the proposed concept.

Ormen Lange is planned as a subsea development producing directly to Nyhamna for well stream processing, gas compression and condensate offloading to tankers. The annual gas export plateau will be approximately 21 billion Sm3 and the daily export capacity up to 70 million Sm3.

To maintain production when reservoir pressure declines, an offshore compression facility is planned for installation on the field with a planned start-up date in 2016. However, a subsea compression solution will be evaluated, in parallel, as a cost-effective alternative to a compression platform.

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