www.hydro.com

Hydro Oil & Energy

Lehman Energy Conference, New York

David W. Nunn, Senior Vice President, Corporate Portfolio Strategy2005-09-08

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2

Forward-Looking Statements/Use of Non-GAAP Financial Measures

In order to utilize the “safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995, Hydro is providing the following cautionary statement: This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the Company with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The actual results and developments may differ materially from those expressed or implied in the forward-looking statements due to any number of different factors. These factors include, but are not limited to, changes in costs and prices, changes in economic conditions, and changes in demand for the Company's products. Additional information, including information on factors which may affect Hydro's business, is contained in the Company's 2004 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission.

With respect to each non-GAAP financial measure Hydro uses in connection with its financial reporting and other public communications, Hydro provides a presentation of what Hydro believes to be the most directly comparable GAAP financial measure and a reconciliation between the non-GAAP and GAAP measures. This information can be found in Hydro’s earnings press releases, quarterly reports and other written communications, all of which have been posted to Hydro’s website (www.hydro.com).

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Cautionary Note

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation material, such as expected recoverable resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, SEC File No. 1-9159, available from us at our Corporate Headquarter: Norsk Hydro, N-0240 Oslo, Norway. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

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Financial overview – 2004

Oil & Energy47 %

Aluminium51 %

Other2 % Aluminium

17 %

Other1 %

Oil & Energy82 %

Oil & Energy42 %

Other7 %

Aluminium51%

Operating revenues – USD 23 bill. EBITDA – USD 7,6 bill.

Capital Employed – USD 12,8 bill.

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Consistently delivering profitable growthOil and gas production

1 000 boe/day

0

500

1000

1500

2000

1998 2004 2010E

Aluminium production1 000 tonnes

0

250

500

750

1998 2004 2008E

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Total Shareholder Return

6 %

14 %

20 %

24 %

26 %

26 %

28 %

34 %

44 %

46 %

-16 %

-20 % 0 % 20 % 40 % 60 %

Alcoa

Alcan

RoyalDutch

Shell

BP

Total

ChevronTexaco

ExxonMobil

BG

Statoil

Hydro

12 %

15 %

23 %

30 %

43 %

44 %

70 %

100 %

139 %

-17 %

-50 % 0 % 50 % 100 % 150 %

Alcoa

RoyalDutch

BP

Shell

Alcan

ExxonMobil

ChevronTexaco

BG

Total

Hydro

2004 2000-2004

Source: Goldman Sachs

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RoaCE by business area

16,2 %

23,4 %

11,6 %

2002 2003 2004

Oil & Energy Aluminium

7.0 %

2.7 %

4.7 %

3.5 %

2002 2003 2004

Adjusted for German writedown*

Realized

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0,6

0,110,14

0,38

2002 2003 2004 2005 Q2

Debt/equity ratio

Interest-bearing debt + net pension liability (tax adjusted) + operating lease commitments (discounted) –cash and cash equivalents – other liquid assets divided by shareholders’ equity + minority interest

Target: 0,5

Aluminium – highlights

Strong primary metal market fundamentals

Mixed development downstream

Planning new world-class plant in Qatar

Intensified restructuring - decision to close primary capacity

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The industry provides attractive opportunities

Demand increasePercent

World

China

Fast-growing regional markets2004 - 2020

Fast-growing custom segments2004 - 2020

3-6%CAGR

High growth in smelting2004 - 2020

7

35

28

Demand increase

Shut downs

New capacity

Aluminium production increaseMtpy

Transportation

Electrical

Consumer durables

Packaging

Engineering

Construction

2004 2020

Aluminium demandMtpy

CAGR

4.6

Source: Demand model; McKinsey metals and mining practice; team analysis

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Aluminium Qatar – project description

Heads of agreement signed

Annual capacity- 570 000 tonnes - Expansion potential up to 1 200 000 tonnes

Investments- Smelter and casthouse: USD 2 – 2.5 billion - Power plant: USD 0.7-0.8 billion

Hydro 50% ownership- Hydro to market total tonnage

Production start-up end 2009

Exceed 10% IRR after tax at USD 1400/tonne

Excellent location

HAL Technology

Oil & Energy

One of the most efficient North Sea operators

Continued strong production growth

Exploration activity bearing fruit

Adding value by applying world class competence

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Continued strong production growth1 000 boe/day

0

100

200

300

400

500

600

700

800

1998 1999 2000 2001 2002 2003 2004 2005E 2006E 2007E 2008E

Oil NCS Oil Int Gas 8% CAGR*

8% average annual growth*

*Compound Annual Growth Rate, 2001 baseline

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Strong production growthbased on attractive project portfolio

Oil price giving 10% real rate of return post tax*

Brent USD/bbl0 5 10 15 20 25

Skinfaks/RimfaksÅsgard Q-projectNorne Satellites

Angola - RosaLibya - Great Mabruk

Libya - B-fieldNjord Gas Export

Oseberg S JVilje

Oseberg S J CTune Phase 2Ormen Lange

TrollOseberg E

OsebergNjord

Oseberg S Operator IOR NCS

Operator NCSInternationalPartner operated NCS

Operator Development Phase

*Calculations based on USD/NOK exchange rate 8

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Strong growth in equity gas production

0

2

4

6

8

10

12

14

16

2003 2004 2005 2006 2007 2008

bcm

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The Ormen Lange development concept

Seabed development(850-1100m deep)

Steep and uneven terrain

Nyhamna plant

Gas export

Multiphase transport

Hydro’s technologies and expertise make a difference 42% complete

IranPromising discovery in AnaranExploration acreage

Iran

Russia

NCS

Angola

North SeaIncreased exploration activity paying off

- Oseberg, Troll- Peon, Astero

Ormen Lange on trackAmbitious IOR programNew projects submitted and planned

West AfricaAngola - Block 4 and 17Continuous business development

CanadaHebron proceeding towards developmentNew acreage secured

Strengthening position

Telemark/Lorien on trackNew acreage securedPreparing for 2006-2008 exploration campaign

Many opportunities

Expanding

Well positioned in energy rich area

Continued growth

RussiaShtokman proposal submittedMoUs with Gazprom on Barents SeaPositive developments on Kharyaga

Staying power

New Exploration acreageNorway, Canada, IranMorooco, Madagascar, Cuba

Expanding a balanced exploration portfolio

Canada

GoM

Deepwater US GoM

Increasing our international presence

LibyaProduction and exploration ongoing

New leases being pursued

Libya

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Three paths to future growth

Existing portfolio- Increased recovery- Develop technical resources

Exploration- Increase predictability- Exploit infrastructure position- Entry in new regions

Acquisitions- Utilize our competence- Capital discipline Short term Long term

Existing portfolio

Exploration

Acquisitions

Developing the Norwegian Continental ShelfThe Hydro Troll field development

Development projects on plan

Ambitious IOR projects

Submitted new development projects

Preparing for important 19th round

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Creating value by integrating new technologies

14081447

1164

1225

PDOI-Wells

PDO Troll C

PDOT-wells

Prod. StartTroll C

649

945

PDOH-wellsGasProvince

Prod start Troll B

Increased well density

500

1000

1500

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

M bbl

353 385

PDO Troll B

Test prod.Gasprovince

Troll 300=

1900 mill. bbl

208277

Test prod.PetrojarlHorizontal well

13281358

Troll PilotPDO P2wells

ResourcesProduction

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Exploration strategy paying offDiscoveries 2005

Peon

Astero

Troll Brent

Oseberg Sør B Oseberg Sør J

North Sea discoveries 2005- Astero - Peon- Troll Brent

- Oseberg South - B South- Oseberg South - J Central

- Vigdis M5

International discoveries 2005- Angola- Denmark - Iran

Ambitious exploration plans going forward- 2H’05: Spudding 15-20 wells- 2006: 20 wells

Vigdis

Hejre

Discovery wells operated by HydroDiscovery wells with Hydro participation

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NCS: 21 billion barrels left to discover

Barents Sea: 6.2 billion barrels

High risk – high potentialOil-play potential

Norwegian Sea: 7.7 billion barrels

High risk – medium/high potential

North Sea: 7.5 billion barrels

Moderate risk – smaller structuresHigh value per barrel

Source: NPD

Hydro – priorities

Operational improvementsFirst-class project executionImprove Aluminium profitability Strengthen oil & gas resource base

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www.hydro.com

Additional information

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Key facts Ormen Lange and Langeled project

Total field & pipeline investments NOK 66 bn (2003) (9,5 bn USD)

Profitable Above $13/bbl > 10% IRR after tax

Production start Ormen Lange October 2007

Operations start Langeled October 2006

Recoverable gas reserves 397 Bcm (14 TCF)

Recoverable condensate 28.5 Mcm

Gas production 21.4 Bcm/yr (2.100 mmcfd)

Condensate production 40.000 bbl/d

Water depth 850 – 1 100 metres

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CanadaMature area opportunities in highly profitable portfolio

Existing portfolioHibernia and Terra Nova optimizationHebron development solution

ExplorationNear infrastructure led explorationMature current licence portfolioAssess risk/volume in immature basins

Acquiring resourcesIncrease technical resources in the Grand Banks area

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AngolaDiversified opportunities in profitable growth portfolio

Existing portfolioGirassol and Jasmim optimizationsDalia/Rosa development projects 3rd production hub selection

ExplorationCommercialize Block 4 discoveryAlternative potential in Block 34New opportunities with Sonangol P&PSignificant mid-sized prospect potential

Acquiring resourcesAdditional opportunities based on proven reserves

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RussiaLegacy asset opportunities through long-term commitment

Existing portfolioFurther development of Kharyaga

ExplorationPursuing business opportunities

Acquiring resourcesShtokman Co-operation with Gazprom on thedevelopment concept

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LibyaExisting exploration potential in long-term core area

Existing portfolioMabruk developmentsMurzuq developments

ExplorationExploration drillingCo-operation with Wintershall EPSA exploration round V

Acquiring resourcesActively pursuing additional value creating growth opportunities

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IranExploring for oil in key petroleum province

Exisiting portfolioAnaran exploration acreage

ExplorationAzar well with positive progress Khoramabad contract bid submitted

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Gulf of MexicoCommercial mindset and deep-water competence

Existing portfolioTelemark development (operator)Lorien development (non operator)

ExplorationSuccessful lease salesOperator blocks

Acquiring resourcesActively pursing additional value creating growth opportunities

TelemarkLorien