Selling gas

BP is seeking offers for its interests in the Ormen Lange gas field off the shores of Norway as well as its related gas export pipeline. The company hopes to reach agreement on a sale by the end of 2004 with completion early in 2005.

BP's Norwegian subsidiary, BP Norge, holds a 10.34% equity interest in the Ormen Lange field and a 10.2% participating interest in the Langeled pipeline system.

Scott Kerr, Managing Director of BP Norge, said that BP would prefer to use its resources in projects that are strategic for BP rather than hold on to a non-strategic, non-operating minority stake in the Ormen Lange field.

The Ormen Lange field, discovered in 1997, is the second largest gas field on the Norwegian continental shelf. The field is located 120 kilometres off the west coast of Norway, covering an area of 350 square kilometres in water depths of 800-1200 metres. The field's development plan is based on 14 trillion cubic feet (397 billion cubic metres) of gas resources.

Gas from the field will be exported to UK and European markets via the new 1200 kilometre Langeled pipeline.

Development of the field was approved by the Norwegian parliament in April 2004 and first production is expected in 2007.

JP Morgan Chase & Company have been retained by BP to advise on the planned sale.