Offshore staff

NEW ORLEANS - Norsk Hydro's Gulf of Mexico business unit was the apparent high bidder on 23 out of 35 blocks it bid on at the recent Western Gulf of Mexico Lease Sale.

Hydro won all seven of its bids on the shelf and will be operator for them all. It was also the apparent high bidder for 16 out of 28 bids in deepwater and will operate 14 of those.

Hydro has an average equity of 94% working interest in the blocks. The lease duration is five years on the shelf and 10 years in deepwater.

"This sale is a precursor of the next three years' activity level in the deepwater Gulf. I'm happy with our efforts and results," said Kelly Barnes, a Norsk Hydro vice president. He added that this was a highly competitive sale with 2.3 bids per tract versus the usual 1.2 bids per tract.

"These acquisitions will not only enable us to continue our successful shelf activity, but will give us positions in several prospects in the Miocene and Oligocene trends of the deepwater, and a position south and east of the Norman prospect that is currently drilling," said Helge Haldorsen, Gulf of Mexico business head for Hydro.

All of Hydro's apparent high bids are subject to review and final approval by the MMS, which can take up to 90 days.

8/18/2006