NHY - EU settles GFU gas sales dispute

Norsk Hydro and the European Commission have agreed to settle amicably the dispute related to the previous marketing of gas from the Norwegian continental shelf through the Gas Negotiation Committee (GFU).

 

The Norwegian Government and the companies involved maintain that the GFU system was imposed upon the companies by the Norwegian State and hence was in compliance with the competition rules of the EC or the EEA.

 

The GFU system was abolished by Royal Decree on 21 June 2001. Consequently, the companies on the Norwegian Continental Shelf are now at liberty to sell their own gas individually. On this basis, Norsk Hydro has given the European Commission confirmation that it will market and sell its gas individually.

 

In accordance with its current trading practice, Norsk Hydro has agreed to make available on commercially competitive terms a total of 2.2 bcm of gas to new customers in the period from 1 June 2001 to 30 September 2005. A part of this volume has already been contracted.

 

" I am very satisfied that this matter has been resolved in such a favourable manner. The sales commitments we have made will be discharged within the scope of the strategy drawn up for Hydro's sales of gas. We are also very pleased with the cooperation we have enjoyed with the Norwegian authorities in this matter," states Hydro's President and CEO Eivind Reiten.

 

Certain statements in this press release are or may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not in the nature of historical facts may be deemed to be forward-looking statements and may contain identifying words such as "believes", "anticipates", "plans", "expects" and similar expressions. These forward looking statements are based on Hydro's current expectations, assumptions, estimates and projections about the company and the industries in which it engages in business. All forward-looking statements involve risks and uncertainties. For a detailed description of factors that could cause Hydro's actual results to differ materially from those expressed in or implied by such statements, please refer to its annual report on Form 20-F for the year-ended December 31, 2001 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.