BP seeks to sell Ormen Lange interests

BP is seeking offers for its interests in the Ormen Lange gas field, offshore Norway, and related gas export pipeline. The company hopes to reach agreement on a sale by the end of 2004 with completion early in 2005.

BP is seeking offers for its interests in the Ormen Lange gas field, offshore Norway, and related gas export pipeline. The company hopes to reach agreement on a sale by the end of 2004 with completion early in 2005.

BP's Norwegian subsidiary, BP Norge, holds a 10.34% equity interest in the Ormen Lange field and a 10.2% participating interest in the Langeled pipeline system.

Scott Kerr, managing director BP Norge, said: "BP holds a non-strategic, non-operating minority stake in the Ormen Lange field and we prefer to use our resources in projects that are strategic for BP."

The Ormen Lange field, discovered in 1997, is the second largest gas field on the Norwegian continental shelf. The field is 120 km off the west coast of Norway, covering 350 sq km in 800-1,200 m of water. The field's development plan is based on 397 bcm of gas resources.

Gas from the field will be exported to UK and European markets via the new 1,200 km Langeled pipeline.

The Norwegian parliament approved of the development of the field in April 2004 and first production is expected in 2007.

BP has retained JPMorgan Chase & Co. to advise on the planned sale.

The partners in the Ormen Lange development are development phase operator Norsk Hydro 18.07%, production phase operator Shell 17.04%, Petoro 36.48%, Statoil 10.84%, BP Norge 10.34%, and ExxonMobil 7.23%.

10/19/04

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