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20683_2 - 12.00 * 1 - Hydro Media

Executive Vice President Tore TorvundExecutive Vice President Tore Torvund

Norsk Hydro ASA December 14, 2000Norsk Hydro ASA December 14, 2000

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:KDW�ZH�VDLG�DQG�ZKDW�ZH�KDYH�GRQH:KDW�ZH�VDLG�DQG�ZKDW�ZH�KDYH�GRQH

Direction October 1999: Actions taken:

Develop 4 - 5 internationalcore areas

Each with a productionpotential >50,000 boe/dayDeep water vs. low cost areasBalanced portfolio: NCS vs International diversification

Reduce finding and development cost tobelow 5 USD/boe

Increase production to800,000 boe/day

Strengthen Hydro'sposition as a gas company

Further developed existing core areas

Iran added as a potential core areaStronger focus on international exploration activity

Increased focus on lead time from exploration to development decisions. Ormen Lange of great importance

Production target within reach based on existing portfolio

Gas strategy under development

20683_2 - 12.00 * 2 - Hydro Media

2

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Hydro is a technology driven company, with deepwater expertise and experience from operating inharsh environments

Hydro can offer a differentiated approach and has good tradition of co-operation with authorities

Hydro is a leading company in a successful oil province (NCS)

Hydro has the opportunity to ut ilise NCS assets in international swaps

20683_2 - 12.00 * 3 - Hydro Media

3

NorwayNorway

Barents SeaBarents Sea

West AfricaWest Africa

CanadaCanada

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BrazilBrazil

Gulf of MexicoGulf of Mexico

20683_2 - 12.00 * 4 - Hydro Media

4

Producing fieldsand reserves

Developmentof Technical

resources

Exploration

2000 2005 2010 2015

Pro

duct

ion

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Build on Hydro's NCS operator competencies

Secure access to an initial portfolio with long term field development and exploration potential

Pursue possibilities for co-operation with existing companies in the area

Focus on competitive fiscal and commercial environment

20683_2 - 12.00 * 5 - Hydro Media

5

2000 2002 2004 2006 2008 20100

50

100

1501000 bbl/dayCanada - production potential (NH-share)

Hibernia/Terra Nova

Hebron

Scotian Shelf/

Flemish Pass

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IXWXUH�GHSHQGHQW�RQ�VXFFHVVIXO�H[SORUDWLRQ�IXWXUH�GHSHQGHQW�RQ�VXFFHVVIXO�H[SORUDWLRQ�

Producing fieldHibernia on stream(9.000 bbl/day)*

Fields under developmentTerra Nova production startsummer 2001 (20.000 bbl/day)*

Hebron - sanctioning expectedin 2003 (~ 15.000 bbl/day)*

High potential explorationacreage to be drilled in2002/2003

Scotian Shelf

Flemish Pass* (NH-share of plateau production)

20683_2 - 12.00 * 6 - Hydro Media

6

Block 18

$1*2/$

Luanda

9

3417

5

1

Open blocks

Norsk Hydro participation

0 10 20 30 40 50

Block 17

Greater Tulipa Area

Girassol - Dalia Area

JACINTO-1

MARGARIDA-1

GIRASSOL-1

GIRASSOL-2A

DALIA-1

DALIA-2DALIA-3

DALIA-4

ROSA-1

LIRIO-1

ROSA-2TULIPA-1

ORQUIDEA-1CRAVO-1

CAMELIA-1

JASMIN-1

Greater Rosa-Lirio

Area

Block 17

Fields under developmentGirassol on stream 4Q 2001(20.000 bbl/day)*Sanctioning of Dalia in 3Q 2001(20.000 bbl/day)*Concept selection Rosa/Lirio 2001

High potential exploration acreageBlock 34; Signing of PSA 1st/ 2nd Q 2001, Preparations for 1st well 2001Block 17; Drill remainingexploration wellsBlock 5; 3d seismic acquisitioncompleted, 1st well 2001Block 9; Dry well 2000 Next commitment well 2002

2000 2002 2004 2006 2008 20100

50

100

1501000 bbl/day

Girassol DaliaRosa, Lirio

Explor.

$QJROD���D�ZHOO�HVWDEOLVKHG�FRUH�DUHD$QJROD���D�ZHOO�HVWDEOLVKHG�FRUH�DUHD

Angola production potential(NH-share)

* (NH-share of plateau production)

20683_2 - 12.00 * 7 - Hydro Media

7

2000 2002 2004 2006 2008 20100

50

100

1501000 bbl/dayRussia production potential (NH-share)

Potential ShtokmanPechora

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Field in production - KharyagaFirst Russian oil under PSA agreement (1999)2nd phase was decided this month3rd phase to be decided 2002Total production 20.000 bbl/day * (Phase 1-3)

Field development potentialTiman Pechora ProjectShtokman Gas Development

Approved in Duma for PSA - producing fieldHydro participates in Western alliance (Fortum, Total/Fina/Elf, Conoco)

Exploration potentialPechora Sea co-operation with Gazprom

20683_2 - 12.00 * 8 - Hydro Media

* (NH-share of plateau production)

8

Anaran: first exploration contract signed in Iran by a Western company

Abadan: rights to negotiate exploration opportunities

Hydro negotiates further co-operation with NIOC

Iraq-Saudi ArabiaNeutral Zone

KUWAIT

QATAR

BAHRAIN

UNITED ARABEMIRATES

OMAN

IRAQ

IRAN

OMAN

SAUDIARABIA

AFGHANISTAN

Ad Dawhah

Muscat

Baghdad

Tabriz

Kuwait

Teheran

Ahvaz

Bushehr

Shiraz

Bandar Abbas

Mashhad

Al Manamah

Herat

Riyadh

Strait ofHormuz

PersianGulf

ArabianSea

Gulf of Oman

TURKMENISTANCaspian

Sea

ARMENIA

PAKISTAN

AnaranExplorationBlock

Abadan PlainsStudy Area

Dehluran

2000 2002 2004 2006 2008 20100

50

100

1501000 bbl/dayIran production potential (NH-share)

Anaran

Potential

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20683_2 - 12.00 * 9 - Hydro Media

9

1998 1999 2000 - budget 2001 plan0

200

400

600

800

1000

1200

MNOK

NorwayInternational

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20683_2 - 12.00 * 10 - Hydro Media

10

Exploration drilling Around 15 exploration wells

PL 252 east of Ormen Lange with large potential

North Sea round Hydro will apply for new licences with significant potential

Award expected in February 2001

8% production increase expected for Hydro, NCS

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20683_2 - 12.00 * 11 - Hydro Media

11

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����

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����

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Plateau production : NH sharePlateau production : NH share 'HYHORSPHQW3'2 6XEPLWWDO3'2 $SSURYDO�6DQFWLRQLQJ6WDUW 3URGXFWLRQ

20683_2 - 12.00 * 12 - Hydro Media

12

Fields in production and under development

2000 2002 2004 2006 2008 20100

100

200

300

400

500

600

700

800

900

Thousands

Boe/day

Exploration

Resources to bedeveloped

Fields in production and under development

Resources to bedeveloped

Fields in production and under development

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Expected production in 2001 is around 435.000 boe/day

Stronger production development expected in 2002

5 new fields in production by year end 2001

Production start Ormen Lange 2006

20683_2 - 12.00 * 13 - Hydro Media

13

19901991

19921993

19941995

19961997

19981999

20000

500

1.000

1.500

2.000

2.500

3.000

0123456789101112

&RQWLQXHG�VWURQJ�IRFXV�RQ�FRVW�SHUIRUPDQFH&RQWLQXHG�VWURQJ�IRFXV�RQ�FRVW�SHUIRUPDQFH

Maintained position as efficient operator and low cost producer on NCS

Marginal manning increase in spite of 50% production growth from 1998

No increase in cost per barrel in 2001, in spite of major fields on decline

Ambitious targets for 2001Ambitious targets for 2001

Installations/fields inproduction (RHS):

Hydro

Total manning(own employees):

Offshore Onshore

20683_2 - 12.00 * 14 - Hydro Media

14

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Increased equity for operators gives stronger incentives for value creation

Hydro wants to strengthen position in operated fields

SDFI shares provides a basis for international asset swaps

Acquisition of SDFI shares is dependent on acceptable commercial terms

20683_2 - 12.00 * 15 - Hydro Media

15

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2000 2002 2004 2006 2008 20100

100

200

300

400

500

600

700

800

900

Thousands

Boe/day

0

10

20

30

40

50

BCM/year

Oil

Gas

Strong growth in Hydro's NCS gas production

Liberalisationrepresents challenges and opportunities

Possible dismantling of Norwegian Gas Negotiations Committee (GFU)

20683_2 - 12.00 * 16 - Hydro Media

16

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1998 2005 2010 20200

100

200

300

400

500

600

700

800

BCM

2WKHU

,QGXVWULDO

5HVLGHQWLDO

&RPPHUFLDO

3RZHU JHQHUDWLRQ

European Gas Consumption

Source: WEFA

Gas the logical long term energy source for Europe

Main growth in gas for power

Cost competitiveness

Environmental friendly

20683_2 - 12.00 * 17 - Hydro Media

17

Russia Algeria NCS UK0

40

80

120

160

Lon g run mar ginal cost

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LV�D�FRPSHWLWLYH�VRXUFH�RI�QHZ�VXSSO\LV�D�FRPSHWLWLYH�VRXUFH�RI�QHZ�VXSSO\

Transport is ke y cost element

New supplies from Russia/Al geria at substantial cost

Ormen Lan ge ready for production in 2006

Source: McKinsey, Hydro

Øre/Sm3

LNG - cost level

20683_2 - 12.00 * 18 - Hydro Media

high

low

18

0DUNHW�GHYHORSPHQW0DUNHW�GHYHORSPHQW

RSHQV�XS�IRU�2UPHQ�/DQJH�LQ�����RSHQV�XS�IRU�2UPHQ�/DQJH�LQ�����

UK and Ireland supply - demand balance

The UK and IrelandSubstantial importrequired from 2004/5

Infrastructureestablishedthrough Vesterled

Future potential in Poland and Scandinavia

New infrastructure required

Kårstø

Rostock

Berlin

Gas pipeline to Scandinavia/Poland

2000 2002 2004 2006 2008 20100

30

60

90

120

150

20683_2 - 12.00 * 19 - Hydro Media

19

0

1

2

3

4

5

6

7

8

BCM

TradingAgri consumption / third party salesGas production/GFU sales

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Turnover European gas business 2000Turnover European gas business 2000

Interconnector

St. Fergus

Vesterled

Sluiskil

Oseberg

HeimdalFrigg

Bacton

UK

Denmark

Norway

Zeepipe

20683_2 - 12.00 * 20 - Hydro Media

20

+\GUR�KDV�DFKLHYHG�FRQVLGHUDEOH+\GUR�KDV�DFKLHYHG�FRQVLGHUDEOH

WUDGLQJ�PDUJLQV�ZLWKLQ�WKH�(QHUJ\�DUHDWUDGLQJ�PDUJLQV�ZLWKLQ�WKH�(QHUJ\�DUHD

Operating income - Trading

19961997

19981999

YTD 3Q-100

0

100

200

300

400

500

NOK million

Power tradingCrude Oil Trading

NGL TradingEuropean Gas Trading

Trading activity basedon sourcing to Hydro's industrial plants

Power (Aluminium)

NGL (Agri/Petro)

Gas (Agri)

Interconnector position and flexibility of contracts is key in gas trading

Market knowledge and trading skills in oil/ NGL/power/gas

20683_2 - 12.00 * 21 - Hydro Media

21

7ROOLQJ�FRQFHSW�RI��DVVHW�OLJKW��JDV�IRU�SRZHU7ROOLQJ�FRQFHSW�RI��DVVHW�OLJKW��JDV�IRU�SRZHU

Low investments and high tolling rights

20% interest in investment and 50% in tollingSupplies gas and provides offtake of electricityPays a fee over contract period to partnerPartner builds and runs plant

Capitalise on commercial skills in both gas and power

Gas and power price differentials ("spark-spread") and utilising the flexibility of the plant

20683_2 - 12.00 * 22 - Hydro Media

GasGas

El. El.

TollingTolling

GasGasPlantPlant

22

*DV�IRU�SRZHU�WROOLQJ�FRQFHSW�LQ�6OXLVNLO��*DV�IRU�SRZHU�WROOLQJ�FRQFHSW�LQ�6OXLVNLO��

D�ILUVW�RSSRUWXQLW\D�ILUVW�RSSRUWXQLW\

2 x 400 MW located atthe Hydro Agri site inSluiskil - Holland

Competitive project and site location

Favourable gas position at Sluiskil

Synergies at an existing site

Partner's desire to generate electricity locally

20683_2 - 12.00 * 23 - Hydro Media

23

9DOXH�FUHDWLRQ�LQ�2LO�DQG�(QHUJ\�9DOXH�FUHDWLRQ�LQ�2LO�DQG�(QHUJ\�

Significant production growth from existing portfolio

Strong focus on cost performance and reduction of F&D cost as result of new developments

Positioned for SDFI shares - given acceptable commercial terms

Increased international activity by utilising experience from NCS

Positioned for a post GFU gas market

Increasing returns by utilising existing asset base in otherHydro business areas

20683_2 - 12.00 * 24 - Hydro Media

24

Certain statements in this presentation 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, 1999 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.

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20683 - 12.00 *SafeH - Hydro Media