Norsk Hydro upgrades production growth forecast

As a result of its March purchase of eight production licenses Norsk Hydro ASA, substantially upgraded its production profile and average annual production growth rate to 8 % for 2001-05.

June 18, 2002

2 min read

By OGJ editors

HOUSTON, June 18 -- As a result of its March purchase of eight production licenses in Oseberg, Tune, and Grane fields, Norsk Hydro ASA, Oslo, last week substantially upgraded its production profile and average annual production growth rate to 8 % for 2001-05, up from 5-6% previously reported.

That purchase, from the Norwegian State Direct Financial Interests, was approved and completed, company officials said. It increases Norsk Hydro's operating interests to 34% in Oseberg, 40% in Tune, and 38% in Grane.

The additional production will be incorporated into Norsk Hydro's results from May 10, raising the company's 2002 forecast production target to 455,000 boe/d from previous projections of 430,000 boe/d. Those estimates are based on Norwegian production curtailments for the first 6 months of this year, officials said.

By 2005, some 12% of Norsk Hydro's total production in 2005 is expected to come from outside of Norway.

"We expect to see an increasing part of our production, investments, and activity in areas outside of Norway in the years to come," said Tore Torvund, president of the firm's oil and energy business unit. "At the same time, we are confident that Hydro's positions in deep water on the Norwegian Shelf and downstream into the European gas market will provide good business opportunities for the company."