According to Offshore Drilling, Oil and Gas Operations, Exploration, Norsk Hydro has entered a joint venture agreement with Conoco Inc, providing Norsk Hydro with a 25 per cent working interest participation in five firm and three contingent exploration wells in deepwater Gulf of Mexico.
The drilling of two wells already started in July and Norsk Hydro will invest NOK 1.14 billion on acquistion, exploration drilling, data purchases and organizational costs.
Conoco will remain the operator of all the prospects it currently operates but Norsk Hydro will have options to participate in future exploration wells.
"This area offers many attractions as a potential new core area for Norsk Hydro's exploration and production activities. These include high quality exploration opportunities with large undiscovered resource potential, a favourable fiscal framework and the opportunity to further build on Hydro's offshore competency from the Norwegian Continental Shelf. The Gulf of Mexico is considered to be a prime arena for further development of deepwater oil and gas technology", states Frank Pedersen, Senior Vice President, New Ventures, Hydro Exploration and Production International.