OSLO, Norway, March 27, 2003 (PRIMEZONE) -- Hydro, on behalf of the respective license groups, has awarded a contract to Prosafe Drilling Services AS for production drilling services on six of the platforms Hydro operates in the Norwegian offshore sector. The contract -- during the initial period -- has an estimated value of NOK 1.3 billion.
The contract entails the drilling of production wells and well-workover tasks on platforms in the Oseberg area, and on the Brage and Njord installations.
"This contract will provide a number of positive synergy effects to Hydro and its partners. Our strategy, to utilize one contractor for these fields, will optimize use of personnel, expertise, drilling equipment and facilities. This will make it possible for Hydro to operate a safe and efficient drilling campaign that ensures value creation in mature areas," says Hydro Operations and Production head Torgeir Kydland.
Prosafe Drilling Services AS was awarded the contract after a collective evaluation of Health, Safety and Environment, technical and commercial considerations. The company is headquartered in Stavanger and has an operations office in Bergen.
The contract's initial duration is three years with extension possibilities for three two-year periods (options). The estimated total value of the initial period is NOK 1.3 billion (USD 178 million).
Certain statements in this press release are or may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not in the nature of historical facts may be deemed to be forward-looking statements and may contain identifying words such as "believes," "anticipates," "plans," "expects" and similar expressions. These forward-looking statements are based on Hydro's current expectations, assumptions, estimates and projections about the company and the industries in which it engages in business. All forward-looking statements involve risks and uncertainties. For a detailed description of factors that could cause Hydro's actual results to differ materially from those expressed in or implied by such statements, please refer to its annual report on Form 20-F for the year-ended December 31, 2001 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.
Contact Gisle Johanson Norsk Hydro ASA
Telephone 55 99 56 16 Oil and Energy
Cellular 41 44 00 50 N-0246 OSLO
E-mail Gisle.Johanson@hydro.com Norway
Telephone: (+47) 22 53 81 05
Fax: (+47) 22 53 85 53
www.hydrooilandenergy.com