In Algeria, we are involved in onshore gas production and exploration activities. The In Salah Gas Compression project, part of the original development plan for In Salah, consists of turbine and electricity-driven gas compressor facilities that will be installed at Reg, Teg and Kretchba, respectively.

The purpose of the new compressor facilities is to counteract the declining production rates from the three fields. Construction work has started in the form of site preparations, prefabrication of pipes and equipment delivery. The project is behind schedule, but mitigating actions have been taken to secure the schedule and prevent further delays.

The Leismer field is located in our oil sands lease in the Athabasca region in Alberta, Canada. The Leismer Demonstration project is the first oil sands development being undertaken by StatoilHydro. It is based on Steam Assisted Gravity Drainage (SAGD) technology to extract bitumen from the reservoir. The Central Processing Unit will have a processing capacity of 20 mboe per day. Four well pads have been constructed with a total of 22 well pair slots for steam injection and bitumen extraction.
 
A 12-inch bitumen transport pipeline with a total capacity of 40 mboe per day and an eight inch diluents pipeline from site to Cheecham (length 71 kilometres) are also planned. Civil engineering work on the processing site has been completed and the installation of prefabricated modules for the processing unit is ongoing. Start-up of bitumen production is scheduled for late 2010.

On 4 March 2008, StatoilHydro signed an agreement with Anadarko to purchase Anadarko's remaining 50% share of the Peregrino field in Brazil. The agreement also involves transferring the operatorship to StatoilHydro, and we now hold a 100% ownership share in the field. The transfer of project responsibility took effect on 2 June 2008, and it was formally approved by the Brazilian petroleum authorities, Agencia National de Petróleo, on 11 December 2008.

The Peregrino field is located 85 kilometres off the Brazilian coast in approximately 100 metres of water. A development plan for Phase 1 was approved early 2007, containing two drilling and wellhead platforms and a floating vessel for the production, storage and offloading of oil (FPSO). The first oil is planned to come on stream in 2011 and plateau production of 100 mboe per day is expected to be reached within the first year of production.

The project is progressing according to schedule, and the two wellhead platforms are currently under construction at Kiewit's yard in Corpus Christi, Texas. The FPSO vessel, Mærsk Nova, is being upgraded at the Keppel Tuas yard in Singapore, while the process facility is being fabricated at the Keppel yard in Batam.

On 12 December 2002, we became operator of the development of the offshore part of the South Pars phases six-seven-eight project in Iran. The South Pars offshore project phases six, seven and eight consist of three wellhead platforms with three pipelines for gas to shore, a condensate loading line and associated single point mooring (SPM) for condensate exports, the drilling of 27 production wells, the hook-up of three pre-drilled wells and required reservoir management.

Gas production from South Pars phase eight started in August 2008 and from phase 6 in December 2008. Production from the third and final phase, South Pars phase seven, is expected to commence after the summer of 2009. Installation of the third and final rich gas export pipeline began in December 2008.