Bengt Lie Hansen Senior Vice President, Hydro Oil & Energy

1. The Giant Ormen Lange Field Development Hydro’s model for arctic offshore projects • World Gas Conference • Amsterdam, June 6th 2006 Bengt Lie Hansen Senior Vice President, Hydro Oil & Energy

2. Ormen Lange paves the way to an exciting future • Ormen Lange field, discovered 1997 • Large technological challenges in deep water solved in time • Hydro has operator responsibility for the development amounting to USD 10 billion • The gas is brought ashore for processing in Norway and piped 1200 km to the UK • To come on stream in 2007

3. Ormen Lange securing Europe’s largest gas market Ormen Lange to supply Europe’s largest gas market • Hydro’s Ormen Lange project will secure 20% of UK’s gas demand • Will make Norway the second largest gas supplier in the world after Russia • Probably the most challenging gas development globally today Source: Global Insight (July 2005)

4. Key technology challenges Offshore • Extremely uneven seabed for subsea- and pipeline design and installation • Main production area in an avalanche / slide area • Extreme temperatures, minus 1.2°C at seabed • Challenging waves and winds • Strong current • 850 – 1100 metres water depth • High subsea production • Long tie back

5. 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

6. Storegga slide edge -250m Control umbilicals and MEG lines 2x30" multiphase lines Templates A & B Templates C & D -850m

7. Ormen Lange – technologically groundbreaking • All production templates sub-sea at 850 meter water depth • Rugged seabed with steep hills • Flow assurance in temperatures below zero Celsius • Future compression – sub sea system being qualified at Nyhamna • Largest sub sea development in the world

8. Ormen Lange - onshore processing at Nyhamna • Separation of gas, condensate and water • Remote operation of sub-sea installations 120 km offshore • Annual Export of 21 BCM • Ready for use in October 2007

9. Langeled - breaking records from Norway to UK • The world's longest sub-sea pipeline system • First delivery of Norwegian gas to the UK this year • Ormen Lange gas will flow through Langeled October 2007

10. Easington Receiving Facilities in the UK BP Centrica

11. Ormen Lange - on schedule and within budget 70% completed Langeled (79%) Offshore (62%) Onshore (60%)

12. Ormen Lange summary: • We are on schedule and within budget! • Well defined concept at time of decision • Innovative and cost effective solutions • Focus on risk management throughout execution • Onshore experience from Sunndalsøra and Qatar • Active stakeholder management

13. Shtokman – the offshore locomotive in the Arctic • Mega project. Contains 3600 billion cubic meters of gas • Size allows for own infra structure • Shtokman is a door opener for further offshore developments in the region • Shtokman can secure both US and European energy supply

14. Additional Challenges on Shtokman Beyond Ormen Lange Technical • Distance to shore • Flow Assurance • Control of long tie-back wells • Operational • Gas Liquefaction • LNG Offloading Health, Safety & Environmental (HSE) • Arctic environment Ice/Metocean • Design parameter • Ice management

15. The Arctic: A strategic area for world energy supply • The arctic may contain 24 per cent of remaining undiscovered global resources * • US and EU looking for energy supply diversity • Ormen Lange – a model for future arctic projects *Source: USGS