Well, I think it has something to do with Shumi evolution - it's been a while since I've played FF8, but the Shumi don't seem to die like normal people, some morph into Moombas, etc. NORG turned into an egg - you can see it if you go down to the basement later in the game. I think it hatches near the end of the game, but I don't think you ever find out what came out of it.