Offshore staff

OSLO, Norway -- Hydro and Anadarko have entered into an agreement with Kiewit Offshore Services Ltd. of Ingleside, Texas, for the supply of two drilling platforms for use on the Peregrino field offshore Brazil.

The platforms shall be ready for installation on the field in late 2009, Hydro says.

The agreement is subject to approval of the Peregrino field development plan. The Peregrino field lies 85 km (53 mi) offshore Brazil in 100 m (328 ft) water depth. Recoverable reserves are estimated at 300-600 MMbbl of heavy oil.

The field will be developed with an FPSO and two drilling platforms. There will be 30 horizontal production wells and seven water injection wells.

Production startup is planned for 2010.

Hydro will operate the field with 50% interest during the project planning phase. Anadarko will be operate the field with the remaining 50% interest during the project execution and operation phases.

4/2/2007