Offshore staff

STAVANGER, Norway –As Troll field operator, StatoilHydro has recommended discontinuation of the Troll Future Development project, citing the Norwegian Ministry of Petroleum and Energy's decision not to increase field gas production permits.

StatoilHydro says it also will withdraw from the related Gas Network Expansion (GNE) project in its current form. The GNE project is aimed at realizing a new gas export pipeline from the Norwegian continental shelf to Europe.

"We and our partners have viewed Troll Future Development as an important project," says StatoilHydro's chief executive Helge Lund. "However, the project is dependent on increased gas production permits for the Troll field. We have to take the Ministry's decision into account, and have therefore recommended that the project is stopped with immediate effect."

"StatoilHydro's commitment to realizing the full potential on the NCS remains the same," says Lund. "The work undertaken in Troll Future Development has provided a good basis for a long term development of the resources on Troll. We are working on a number of projects in Norway and internationally that will contribute to strengthening our position as an important and reliable long-term supplier of natural gas to Europe."

10/22/2007