Offshore staff

OSLO, Norway -- An exploration well on the Nucula prospect in the Barents Sea has proven the presence of oil and gas. Transocean Inc.'s Polar Pioneer semisubmerisble drilled the Nucula discovery well 110 km (68 mi) northeast of the Goliath discovery and 65 km (40 mi) north of the Norwegian town of Honningsvåg.

The well was drilled to 1,592 m (ft) TD, finding hydrocarbons in the Realgrunnen Group formation and in the Kobbe formation. The well was not production tested, but extensive data collection and sampling work has been carried out.

"It is positive that a new, functioning petroleum system has been proven in this part of the Barents Sea, too. However, it is important to emphasize that there is a need for further evaluation and analysis of collected data in order to ascertain whether or not the discovery is commercial," says Tore Lilloe-Olsen, vice president and head of exploration in the development Norway sector, in Hydro's Oil & Energy business area.

There have been strict requirements for this exploration well with regard to discharge and preparedness. The only discharge to the sea during this drilling operation has been from the top hole, and this has predominantly been composed of a mixture of freshwater and table salt. Examinations of the sea bed were carried out after drilling, and these show that the environmental effects of the operation have been minimal.

"Hydro set ambitious targets for implementation of this drilling operation. For this reason, it is gratifying to see that the operation was carried out with less discharge to the sea than planned, no unforeseen incidents, and with minimal effects on the environment. This shows that Hydro is capable of carrying out drilling operations with an extremely good environmental profile, in areas where this is necessary," Lilloe-Olsen says.

Hammerfest was used as base both for helicopter transportation and the provision of supplies to the exploration rig, while several of the emergency preparedness vessels were stationed in Honningsvåg.

Hydro operates the Nucula license with 30% interest. Partners include Eni with 30% interest, BG with 20% interest, and Petoro with 20% interest.

2/28/2007