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Bloomberg: Norsk Hydro Tests Ormen Lange, Sees Gas Production in October

By Paul Dobson

Aug. 30 (Bloomberg) — Norsk Hydro ASA filled natural-gas pipes that connect Ormen Lange to an onshore processing plant as it prepares to start production at the 66 billion-krone ($11.3 billion) field.

The company, Norway’s second-largest oil producer, filled the pipes with gas produced at Statoil ASA’s Sleipner field after clearing them of water, Dag Ryen Ofstad, a spokesman for Hydro, said today in a phone interview. It also used gas from the Statoil field to test two of the three compressors needed for exports of gas via the Nyhamna processing plant. The third compressor is being tested, he added.

Ormen Lange, off the west coast of Norway, is scheduled to start production of about 30 million cubic meters of gas a day in October before reaching daily output of 70 million cubic meters by 2009, Hydro said in March. It will supply as much as 20 percent of Britain’s gas demand, according to information on the company’s Web site.

“We are progressing very nicely,” Ofstad said. “We feel very comfortable that we will be producing Ormen Lange gas in the beginning of October.” He declined to say when test flows from the field will begin. Further equipment tests will be completed first, he said.

“We take one bit at a time, then when we are ready and offshore is ready we will start production,” the spokesman said.

To contact the reporter on this story: Paul Dobson in London at [email protected]

Last Updated: August 30, 2007 17:25 EDT

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