Steel jacket contract awarded to Aker Verdal

Norsk Hydro signed today a contract with Aker Verdal for the construction of the steel jacket for the Grane platform. This contract is worth around NOK 670 million. The steel jacket, which will weigh approximately 17,500 tonnes and be around 150 metres tall, will be built at Aker Verdal, with construction starting in April 2001. The engineering will begin immediately at Aker Engineering in Oslo, and the steel jacket will be completed on 1 March 2003. Up to 400 people will be involved in the construction work at any one time.

The competition for the contract was tough, and it was awarded on the basis of an overall evaluation of price and quality. This is the last of a series of Grane contracts. Kværner Oil and Gas (KOGAS) won the production module contract, which is worth NOK 3.5 billion, on16 May. Then on 5 September, Hydro signed a NOK 200 million contract with Safe Service AS for the rental of a flotel for the hook-up period. The contract for the construction of the drilling module - at a value of NOK 1 billion - was awarded to Aker Maritimeon 11 October.

The Grane field, which is situated about 185 kilometres west of Stavanger, will be built as an integrated accommodation, process and drilling platform mounted on a steel jacket. Combined total investments are estimated at NOK 15 billion.

With its reserves of approximately 700 million barrels of recoverable oil, Grane is the largest proven oil field in the North Sea still to be developed. It is expected to reach peak production of 214,000 barrels per day in 2005. The oil will be transported in a pipeline to the Sture terminal north-west of Bergen.

Hydro has a 24.4 percent interest in Grane. The other stake holders are Statoil with 6.4 percent, the state's direct financial interest (SDFI) with 43.6 percent and ExxonMobil with 25.6 percent.