Fields in production

The In Salah onshore gas development, in which we have a 31.85% interest, is Algeria's third largest gas development. The field is currently producing at plateau level. A Contract of Association, including mechanisms for revenue sharing, governs the rights and obligations of the joint operatorship between Sonatrach, BP and StatoilHydro. A joint marketing company sells the gas produced in the development, and all gas produced until 2017 has been sold under long-term contracts.

In addition to the operating activities at In Salah, drilling operations and a compression expansion project were ongoing in 2008. The activities in 2009 will include start-up of some of the compression stations and further work on preparing for the In Salah Southern Fields development. StatoilHydro is in charge of the compression project.

The In Amenas onshore development is the fourth largest gas development in Algeria, containing significant liquid volumes. The development was built and is operated through a joint operatorship between Sonatrach, BP and StatoilHydro, and we have a 50% share of the development costs. This project is currently producing at plateau level. The rights and obligations are governed by a production sharing contract, giving BP and StatoilHydro access to a share of the liquid volumes only. A continuous production drilling campaign is ongoing. Further preparations and maturing of the In Amenas Compression Expansion project are ongoing and will continue in 2009 with BP as lead.

The overall security and political situation continues to be sensitive and is monitored continuously. Appropriate measures are assessed based on the perceived risk level. This risk monitoring will continue through 2009.