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Consent for use of Hod beyond the original expected design life

Consent: BP Norge AS (BP) has been granted consent to use Hod beyond the original expected design life, until 29 May 2015.

HodWe have previously granted consent to BP for continued use of the production pipeline between Hod and Valhall.

Hod was installed and production started in 1990. The original expected design life was 15 years. BP has applied for continued operation until 29 May 2015, which is when the Hod field license expires.

Production from the Hod field takes place both from wells on the Hod facility (pictured) and wells drilled from the facility on the Valhall South Flank.

BP is currently preparing a revised production strategy for Hod and it is possible that production will continue. The company is considering increased water injection and other measures to increase the recovery rate from the field.

Hod is scheduled to be connected to the new PH facility* in 2010.

* BP plans to build a new facility (PH) on the Valhall field, which will replace two of the three oldest facilities. PH will be an integrated production and living quarters facility with power supply via cable from shore. Production from PH scheduled to start towards the end of the third quarter of 2010.