Norwegian Parliament approves Ekofisk II plan.BARTLESVILLE, Okla.--(BUSINESS WIRE)--Nov. 11, 1994--Phillips Petroleum Company Norway, as operator of the Phillips Norway Group (PNG (Portable Network Graphics) A bitmapped graphics file format endorsed by the World Wide Web Consortium. It is expected to eventually replace the GIF format, because there are lingering legal problems with GIFs. ), Friday announced that the Norwegian parliament has approved the Ekofisk II plan, submitted in March 1994 to provide for the continued long-term operation of Ekofisk, the PNG's giant oil and gas venture in the Norwegian sector of the North Sea. The plan was unanimously approved Nov. 9 by the Storting. "The Ekofisk II plan will lead to significantly reduced operating costs operating costs npl → gastos mpl operacionales and will allow the maximum long-term recovery of Ekofisk field reserves," said Knut Aam, managing director of Phillips Petroleum Company Phillips Petroleum Company was founded in 1917 by L.E. Phillips and Frank Phillips, of Bartlesville, Oklahoma. Their younger brother, Waite Phillips was the benefactor of Philmont Scout Ranch. Phillips Petroleum was headquartered in Bartlesville, Oklahoma. Norway. Additional recoverable reserves in the production license after 2011 are estimated at more than 280 million barrels of oil equivalent. The plan features five key items: -0- The Norwegian state acquires a direct ownership share of 5 percent beginning Jan. 1, 1999. The state also will fund 5 percent of the development costs for Ekofisk II. The royalty on oil and natural gas liquids will be discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: once the project is completed. The tentative date for completion is late 1998. The production license is extended from 2011 through 2028. The operating licenses for the pipelines owned by Norpipe a.s. are extended from 2005 for the oil pipeline and 2007 for the gas pipeline through 2028. After 2005 for the oil pipeline and 2007 for the gas pipeline, the equity shares will be 30 percent for PNG, 30 percent for Statoil and 40 percent for the Norwegian state. Current ownership is divided 50/50 between PNG and Statoil. -0- The Ekofisk II plan provides for the construction of two new platforms -- a wellhead well·head n. 1. The source of a well or stream. 2. A principal source; a fountainhead. 3. The structure built over a well. wellhead Noun 1. platform to be completed in 1996, and a combined process and transportation platform to be completed in 1998, linked with the existing Ekofisk Complex. The new facilities are expected to allow production of the field to the end of the revised license term of 2028. The estimated capital cost of the Ekofisk II facilities is $3 billion. The Ekofisk Complex is the hub of the world's largest petroleum transportation system. Currently, about 560,000 barrels of oil per day are transported through the Ekofisk Complex to Teesside, England, and approximately 2 billion cubic feet a day of natural gas are transported to Emden, Germany. Coventurers in Ekofisk are: Phillips Petroleum Company Norway (operator), 36.96 percent; Norsk Fina A/S, 30 percent; Norsk Agip A/S, 13.04 percent; Elf elf, in Germanic mythology, a type of fairy. Usually represented as tiny people, elves are said to dwell in forests, in the sea, and in the air. Although they can be friendly to man, they are more frequently vengeful and mischievous. Petroleum Norge A/S, 7.594 percent; Norsk Hydro Norsk Hydro ASA (OSE: NHY, NYSE: NHY) is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. a.s, 6.7 percent; TOTAL Norge A.S, 3.547 percent; Den norske stats oljeselskap a.s, 1 percent; Elf Rex Norge A/S, 0.855 percent; and Norminol A/S, 0.304 percent. -0- Ekofisk II: A Chronology chronology, n the arrangement of events in a time sequence, usually from the beginning to the end of an event. Oct. 8, 1992: The Norwegian Petroleum Directorate (NPD NPD New Product Development NPD Nouveau Parti Démocratique (Canada) NPD Narcissistic Personality Disorder NPD Norwegian Petroleum Directorate NPD Nationaldemokratische Partei Deutschlands ) announces that it may order Phillips Petroleum Company Norway to close its main oil and gas processing tank at Ekofisk by the winter of 1995-96 due to safety concerns. Oct. 30, 1992: The Phillips Norway Group (PNG) proposes to the NPD a series of measures that would provide for the continued long-term safety and reliability of Ekofisk's oil and gas processing and transportation operation. Nov. 18, 1992: The NPD responds to the PNG's proposals. Key elements of the NPD response: 1. NPD, which was considering the 1995-96 shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of the Ekofisk tank, says it will "defer the evaluation of the time of a permanent shutdown" contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the PNG's plans to preserve the 2/4T platform. 2. NPD presses for tighter deadlines on proposed interim and long-term safety measures safety measures, n.pl actions (e.g., use of glasses, face masks) taken to protect patients and office personnel from such known hazards as particles and aerosols from high-speed rotary instruments, mercury vapor, radiation exposure, anesthetic and . The PNG must submit a "binding plan" containing interim safety measures by Feb. 1,1993 and a long-term plan no later than July 1, 1993. Feb. 1, 1993: The PNG submits its "binding plan" of interim safety measures to the NPD. July 1, 1993: The PNG submits to NPD its plan designed to maintain the long-term safety and reliable operation of the Ekofisk oil and gas processing and transportation system. The plan calls for the complete new development of Ekofisk, with the construction of a new platform, transportation and processing system. The new development is named Ekofisk II. Dec. 31, 1993: The PNG submits a plan for development and operation to the Norwegian Ministry of Industry and Energy (MIE) -- a detailed plan that provides technical and commercial details of the plan. March 15, 1994: The PNG submits a revised plan for development and operation to the MIE. The amended plan, called Ekofisk IIA (1) (Information Industry Association, Washington, DC) In 1999, IIA merged with SPA (Software Publishers Association) to become the Software & Information Industry Association. See SIIA. , is the result of further technical studies and the government's objection to certain aspects of the Ekofisk II plan. The modified plan proposes making greater use of the existing Ekofisk infrastructure and would be in accordance with Norwegian safety requirements. June 17, 1994: The PNG and the MIE reach a tentative agreement on the Ekofisk IIA plan. The plan goes to the Norwegian parliament (Storting). Nov. 9, 1994: The Storting approves the Ekofisk IIA plan. onw/9:35 a.m. CONTACT: Phillips Petroleum Company Norway
Jere Smith, 918/661-4982
Rob Phillips, 918/661-9326
Edd Grigsby, 212/397-9766 (1ST CALL ONLY)
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