Norsk Hydro ASA - Letter of intent regarding sale of Pelican AS

Oslo, NORWAY


The owners of the Norwegian oil company, Pelican AS, today signed a letter of intent regarding the sale of their shares to Dansk Olie og Naturgas A/S (DONG) for NOK 250 per share, putting a valuation of NOK 417 million on the company. This agreement is subject to the necessary approval by the Norwegian authorities.

Pelican has ownership interests in Ula (4%), Gyda (5%), Tamber (15%) and Glitne (9,3%), and is expected to produce 11,000 barrels per day next year. The company has 20 employees.

The acquistion confirms DONG's interest in the Norwegian shelf. DONG intends to develop Pelikan as the basis for this concentration.

The sale is in line with Hydro's drive to focus the Norwegian shelf activities of its core areas. The sale is expected to generate a pre-tax accounting profit to Hydro of approximately NOK 60 million (which is expected to be posted as revenue in the course of the first half of 2002).

The owners of Pelican AS are:

AS Selvaag Invest: 36.2%
Norsk Hydro Produksjon a.s: 33.9%
Belships ASA: 9.9%
Actinor Olje AS (Hafslund): 9.7%
Kværner Oil & Gas AS: 5.2%
Employees: 5.3%