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STATOIL PLACES HUGE STEEL ORDER FOR GAS PIPELINES

Dec. 12, 1994

Norway's state owned Den norske stats oljeselskap AS (Statoil) has let contracts totaling 8 billion kroner ($1.2 billion) for steel to lay five gas pipelines from Norwegian gas fields to Europe. Orders have been placed with British, Italian, French, German, and Japanese steel manufacturers for a total 1.5 million metric tons of steel for delivery in 1995-99. Press reports suggest the orders will make Statoil the world's leading steel buyer in the remainder of this decade.

Norway's state owned Den norske stats oljeselskap AS (Statoil) has let contracts totaling 8 billion kroner ($1.2 billion) for steel to lay five gas pipelines from Norwegian gas fields to Europe.

Orders have been placed with British, Italian, French, German, and Japanese steel manufacturers for a total 1.5 million metric tons of steel for delivery in 1995-99. Press reports suggest the orders will make Statoil the world's leading steel buyer in the remainder of this decade.

French newswire Agence France Presse quoted Statoil as saying that steel mill in France and Germany will account for 70% of the steel, with German steel giant Mannesmann AG alone accounting for 30-35% of the orders.

Cost of the five pipeline projects is estimated at a combined 30 billion kroner ($4.5 billion).

PROJECTS DETAILS

Statoil said the steel will be used to manufacture mainly 40 in. diameter pipe, for the following pipeline projects:

Zeepipe IIB, a 296 km pipeline from Norway's Kollsnes terminal to the Block 16/11 offshore gas transmission hub, due to carry first gas Oct. 1, 1997.
Europipe II export line, a 670 km link to Germany to follow the same path as Europipe I from Block 16/11 to Emden.
Zeepipe IV from Sleipner field to Zeebrugge in Belgium or Dunkirk in France, which will be 860 km or 900 km long, respectively.
A loop around Ekofisk field, which is to be redeveloped away from seabed subsidence areas, estimated to require a 150 km line.
A link from Haltenbanken area of the Norwegian Sea to the North Sea gas grid, expected to require 600 km of pipeline.

PROJECTS MM

The official said Zeepipe IIB design is under way, with construction due to take place mainly in 1996.

Europipe II or Zeepipe IV will be next in line, with Statoil required to make a choice in time for submission of plans to authorities by Feb. 15.

Work on the five pipelines is expected to take place each construction season during 1996-1999. Contracts for pipelaying are expected to be let in spring 1995.

Issue date: 12/12/94