Alexey Miller, Gazprom’s Management Committee Chairman and Eivind Reiten, Hydro's President and CEO have signed a Memorandum of Understanding.

The Memorandum stipulates the survey study of potential joint involvement in oil and gas projects being performed, largely, for the purpose of analyzing the outlook of cooperation between Gazprom and Hydro in the Shtockman gas condensate field development and LNG production. In particular, the parties will look into the possible use of underwater technologies being applied by Hydro at the Ormen Lange field as well as will explore in-depth the entire gas value setting chain and will examine gas trading markets.

In addition, the parties will address Gazprom’s potential participation in Hydro-operated oil and gas field development projects, Ormen Lange inclusive.

“The accords reached are for Hydro a path towards the continuation of joint activities and long-term cooperation between the 2 companies,” – noted Eivind Reiten.

“The Memorandum signed is being regarded upon is another step forward in the commercial development of the Barents Sea gigantic hydrocarbon reserves. Hydro counts on vast experience and state-of-the-art technologies of developing offshore fields. Joining our potential with the experience gained by such large oil and gas businesses as Hydro will lay foundations for the successful fulfillment of Gazprom’s large-scale plans on the Arctic shelf,” – maintained Alexey Miller on signing the Memorandum.

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The Norwegian firm Hydro is one of the leading players on the global energy market, producing considerable amount of oil, gas and electricity. With major production capacities located on the Norwegian continental shelf, Hydro is also engaged in hydrocarbon extraction in Canada, Mexican Gulf, Iran and Angola. The company’s 2003 turnover and net profit accounted for USD 23.7 bln and USD 1.47 bln, respectively.

Over 2003, Hydro’s natural gas deliveries from the Norwegian continental shelf to Europe totaled 7 bcm and are expected to jump to 14 bcm by 2010.

Hydro operates 12 oil and gas fields in the Norwegian North Sea, the Troll and Ormen Lange fields inclusive.

Recently discovered by Hydro 100 km of the northwest Norwegian coast, the Ormen Lange gas field has 397 bcm of gas reserves, with projected production to account for 20 bcm/y. First gas is scheduled to be extracted (with the aid of underwater technologies) from the field in 2007.

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