Fram West Field Development Plan to be submitted

As operator of exploration and production license 090, Norsk Hydro will today submit its plan for development and operation (PDO) of the Fram West field to the Norwegian Ministry of Petroleum and Energy. The offshore tract, which is scheduled to start producing oil in October 2003, will have a plateau output rate surpassing 60,000 barrels per day.

"The PDO for Fram West marks the first step in developing the entire Sogn area. We have placed emphasis on crafting a development solution that ensures optimal recovery of the region’s resources and the best possible utilization of the infrastructure in the Troll area," says Hydro Exploration and Production senior vice president Lars T. Bjerke.

In addition to the Fram West plan, Hydro presented a development plan for the Vale field in November this year. The Vale and Fram West field developments are representative of the significant future challenges Hydro faces on the Norwegian continental shelf.

"Both Vale and Fram West are marginal fields that lie near existing platforms and pipelines. It is imperative Hydro exploit these deposits in the best possible way. We have demonstrated the priority placed on rigorous economic demands to ensure optimal recovery of the resources," Bjerke comments.

Investments will be approximately NOK 4.2 billions, and the reserves from Fram West are 100 million barrels of oil and 3.5 billion cubic metres of gas. Fram West will be developed with two subsea well templates with four well slots each. The wellstream will be transported to Troll C for processing. The oil will then be transported to the land-based Mongstad terminal. The plan calls for re-injecting the gas back into the reservoir for a period of six yearsto boost production. Afterwards, it will be transported to the land-based Kollsnes gas treatment facility.

Hydro continues to work with plans to develop other petroleum deposits in the Sogn region.

Fram West lies on Block 35/11, which is part of license 090, which was awarded in 1984. The field is located some 100 kilometers north-west of the western Norwegian city of Bergen.

Equity shareholders in Fram West are:

The State’s Direct Financial Interest (SDFI) - 30 percent
Statoil - 20 percent
Norsk Hydro (operator) - 25 percent
ExxonMobil - 25 percent