Hydro is to extend its contract with KCA Deutag Drilling Norge AS for drilling services on six of the company's fixed installations on the Norwegian continental shelf. The contract is worth around NOK 900 million in total.

Hydro has notified KCA Deutag Drilling Norge AS that the company, on behalf of the licencees, will exercise its option for extension of the production drilling contract for two years, until 1 July 2008.

The contract comprises drilling of production wells on the fixed installations Oseberg Sør, Oseberg Øst, Oseberg C, Oseberg B, Brage and Njord, which Hydro operates on the Norwegian continental shelf. The contract with KCA Deutag Drilling Norge AS has two further options of two years each.

Drilling and maintenance of production wells is an important means of keeping up production levels and increasing oil recovery from fields in operation. Good, long-term cooperation with the company’s drilling suppliers contributes to safeguarding the added value from the fields Hydro operates on the Norwegian continental shelf.

With the exception of Brage and Oseberg East, Hydro is currently drilling production wells on all six installations. On Brage, a new production drilling campaign is planned from the autumn of 2006. At present, Hydro is building a new integrated drilling module on Oseberg East, and will, according to current plans, begin a new phase of drilling and maintenance activity on the platform in early 2007.