bengt lie hansen senior vice president, hydro oil & energy

Bengt Lie HansenSenior Vice President, Hydro Oil & Energy The Giant Ormen Lange Field Development Hydros model for arctic offshore projects

World Gas ConferenceAmsterdam, June 6th 2006

LHB Date: 2005-06-07 Page: * Hydro Oil & Energy

Ormen Lange paves the way to an exciting futureOrmen Lange field, discovered 1997Large technological challenges in deep water solved in time Hydro has operator responsibility for the development amounting to USD 10 billionThe gas is brought ashore for processing in Norway and piped 1200 km to the UKTo come on stream in 2007


Source: Global Insight (July 2005) Ormen Lange securing Europes largest gas marketHydros Ormen Lange project will secure 20% of UKs gas demandWill make Norway the second largest gas supplier in the world after RussiaProbably the most challenging gas development globally todayOrmen Lange to supply Europes largest gas market


Key technology challenges OffshoreExtremely uneven seabed for subsea- and pipeline design and installation

Main production area in an avalanche / slide area

Extreme temperatures, minus 1.2C at seabed

Challenging waves and winds

Strong current

850 1100 metres water depth

High subsea production

Long tie back


Ormen Lange Field Location Storegga slide area (8200 years ago) Only a new ice age will bring about the conditions for new large scale slide


2x30" multiphase lines-250mStoregga slide edgeTemplates A & BControl umbilicalsand MEG linesTemplates C & D-850m


Ormen Lange technologically groundbreakingAll production templates sub-sea at 850 meter water depthRugged seabed with steep hillsFlow assurance in temperatures below zero CelsiusFuture compression sub sea system being qualified at NyhamnaLargest sub sea development in the world


Ormen Lange - onshore processing at NyhamnaSeparation of gas, condensate and waterRemote operation of sub-sea installations 120 km offshoreAnnual Export of 21 BCMReady for use in October 2007


Langeled - breaking records from Norway to UKThe world's longest sub-sea pipeline systemFirst delivery of Norwegian gas to the UK this yearOrmen Lange gas will flow through Langeled October 2007


BPCentrica Easington Receiving Facilities in the UK


Ormen Lange - on schedule and within budget 70% completedOffshore (62%)Onshore (60%)Langeled (79%)


Ormen Lange summary:We are on schedule and within budget!Well defined concept at time of decisionInnovative and cost effective solutionsFocus on risk management throughout executionOnshore experience from Sunndalsra and QatarActive stakeholder management


Shtokman the offshore locomotive in the ArcticMega project. Contains 3600 billion cubic meters of gasSize allows for own infra structureShtokman is a door opener for further offshore developments in the region Shtokman can secure both US and European energy supply


Additional Challenges on Shtokman Beyond Ormen LangeTechnicalDistance to shoreFlow AssuranceControl of long tie-back wellsOperationalGas Liquefaction LNG Offloading

Health, Safety & Environmental (HSE)Arctic environment

Ice/MetoceanDesign parameterIce management


The Arctic: A strategic area for world energy supplyThe arctic may contain 24 per cent of remaining undiscovered global resources *US and EU looking for energy supply diversityOrmen Lange a model for future arctic projects

*Source: USGS


Europe has a gas demand challenge; it is currently becoming more and more dependent on natural gasEuropean gas demand increasing from present around 500bcm to 735 bcm in 2020 (mainly increase in gas for power)The indigenous EU availability is fallinglargely due to the sharp decrease in UK productionUk has traditionally been a gas exporter, but is now converting to having a strong import needWhen Ormen Lange comes onstream in October 2007, it will have also contributed to significantly improving the Norwegian gas export infrastructure by increasing volume capacity by 25%.

Dette skal vi se litt nrmere p gjennom foredrageneOrmen Lange lies in The Norwegian Sea, Regarded as one of the toughest seas in the world concerning wind, waves and currents Future developments in the arctic faces the same challenges that Hydro has solved on Ormen LangeQualification work for future compression sub sea

Norway and Russia sharing strategic borders in the Arctic, holding petroleum deposits on both sides of the borderThe Arctic petroleum locomotive lies in the Russian Barents Sea - Shtokman

bengt lie hansen senior vice president, hydro oil & energy

Documents