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

LHB Date: Page: 2 Hydro Oil & Energy 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

LHB Date: Page: 3 Hydro Oil & Energy Source: Global Insight (July 2005) Ormen Lange securing 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 Ormen Lange to supply Europe’s largest gas market

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

LHB Date: Page: 5 Hydro Oil & Energy 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

LHB Date: Page: 6 Hydro Oil & Energy 2x30" multiphase lines -250m Storegga slide edge Templates A & B Control umbilicals and MEG lines Templates C & D -850m

LHB Date: Page: 7 Hydro Oil & Energy 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

LHB Date: Page: 8 Hydro Oil & Energy 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

LHB Date: Page: 9 Hydro Oil & Energy 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

LHB Date: Page: 10 Hydro Oil & Energy BP Centrica Easington Receiving Facilities in the UK

LHB Date: Page: 11 Hydro Oil & Energy Ormen Lange - on schedule and within budget 70% completed Offshore (62%) Onshore (60%) Langeled (79%)

LHB Date: Page: 12 Hydro Oil & Energy 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

LHB Date: Page: 13 Hydro Oil & Energy 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

LHB Date: Page: 14 Hydro Oil & Energy 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

LHB Date: Page: 15 Hydro Oil & Energy 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

LHB Date: Page: 16 Hydro Oil & Energy