BP Norge increases equity in Valhall and Hod

BP Norge AS today announced that it has agreed with Total E&P Norge AS to acquire its 15.7 per cent interest in Valhall and its 25 per cent interest in Hod, both fields located in the southern part of the Norwegian continental shelf, for the sum of $991 million to be paid in cash

The agreement will give BP, the operator of the two fields, a 43.8 per cent interest in Valhall and 50 per cent in Hod, subject to third party consents and government approval. The deal has an effective date of 1 January, 2010.

“This acquisition strengthens our existing business in Norway and in the North Sea, through access to price-leveraged barrels in a giant resource. By applying technology and the use of improved oil recovery techniques, we intend to significantly increase the recovery of oil from the fields and hope to extend the life of Valhall for decades to come,” said Rebecca Wiles, Managing Director of BP Norge AS.

“As the operator of Valhall and Hod, we know the fields well, and with a new field centre platform being installed later this year, we are confident that Valhall can produce until at least 2050. This investment demonstrates our confidence in our business in Norway,” said Wiles.

Further information

Contacts

BP press office, London: +44 (0)20 7496 4076, bppress@bp.com

Olav Fjellsa, BP Norge: +47 52 01 34 90

Notes to editors

• The Valhall and Hod fields are part of licence PL006B, PL033B and PL033 awarded to BP Norge in the 1st and 2nd Norwegian licence rounds.
• BP’s E&P business in Norway produces 40-50,000 barrels of oil equivalent per day net, and employs about 1000 people (staff and contract) onshore and offshore.
• Over the next 5 years, excluding the deal with Total, BP plans to invest $2.5 billion – $3 billion net capital in its Norwegian business.
• Valhall is currently in the middle of a major redevelopment with a new processing & hotel (PH) platform due to be installed later this year. Hod is a normally unmanned wellhead platform, remote-operated from Valhall 13 km away.
• BP Norge is a subsidiary of BP Global Investment Ltd and Amoco Norway Oil Company.