• Section: Business /Monday 13th October 2014

    Alphabetic Index : A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

    Search β):

    * Statoil *

    استات اویل

    (Wikipedia) - Statoil For the pre-merger company, see History of Statoil (1972–2007). Statoil ASA Type Traded as Industry Founded Headquarters Key people Products Revenue Operating income Profit Total assets Total equity Owners Employees Website
    Oil and gas
    14 June 1972
    Stavanger, Norway
    Helge Lund (CEO), Svein Rennemo (Chair)
    Petroleum Natural gas Petrochemicals Electrical power
    NOK 723.4 billion (2012)
    NOK 206.6 billion (2012)
    NOK 69.5 billion (2012)
    NOK 784.4 billion (2012)
    NOK 319.2 billion (2012)
    Government of Norway (67%)
    23,000 (2013)
    Old logo

    Statoil ASA, (OSE: STL), is a Norwegian multinational oil and gas company headquartered in Stavanger, Norway. It is a fully integrated petroleum company with operations in thirty-six countries. By revenue, Statoil is ranked by Forbes Magazine (2013) as the world''s eleventh largest oil and gas company and the twenty-sixth largest company, regardless of industry, by profit in the world. The company has about 23,000 employees.

    Statoil was formed by the 2007 merger of Statoil with the oil and gas division of Norsk Hydro.

    As of 2013, the Government of Norway is the largest shareholder in Statoil with 67% of the shares, while the rest is public stock. The ownership interest is managed by the Norwegian Ministry of Petroleum and Energy. The company is headquartered and led from Stavanger, while most of their international operations are currently led from Fornebu.

    • 1 Operations
      • 1.1 Upstream oil, gas, and biofuel operations
      • 1.2 Pipeline operations
      • 1.3 Retail station operations
    • 2 History
      • 2.1 Statoil
      • 2.2 Hydro
      • 2.3 Merger
      • 2.4 Divestment
      • 2.5 Expansion of resources
      • 2.6 Recent news
    • 3 Corruption
      • 3.1 Trial against Statoil consultant and two accomplices in 2011
    • 4 Controversies
      • 4.1 Corrib gas project
      • 4.2 Management of art collection
      • 4.3 North Sea
      • 4.4 Charges of unethical practices in Athabasca
      • 4.5 Arctic
    • 5 Environmental record
    • 6 Sponsorship
    • 7 References
    • 8 External links

    Operations Upstream oil, gas, and biofuel operations See also: Statoil operations by country

    Statoil is the largest operator on the Norwegian continental shelf, with 60% of the total production. The fields operated are Brage, Heimdal, Grane, Glitne, Gullfaks, Heidrun, Huldra, Kristin, Kvitebjørn, Mikkel, Njord, Norne, Ormen Lange, Oseberg, Sleipner, Snorre, Snøhvit, Statfjord, Sygna, Tordis, Troll, Veslefrikk, Vigdis, Visund, Volve, and Åsgard. The company also has processing plants at Kolsnes, Kårstø, Mongstad, Tjeldbergodden, and Melkøya.

    In addition to the Norwegian continental shelf, Statoil operates oil and gas fields in Australia, Algeria, Angola, Azerbaijan, Brazil, Canada, China, Libya, Nigeria, Russia, United States, and Venezuela. Statoil has offices that are looking for possible ventures in the countries of Mexico, Qatar and the United Arab Emirates. The company has processing plants in Belgium, Denmark, France, and Germany. In 2006, Statoil was approved to implement the world''s largest carbon sequestration project as a means to mitigate carbon emissions to the atmosphere.

    In September 2007, Statoil and the Brazilian oil company Petrobras signed a deal aimed at expanding exploration, sub-sea, and bio-fuels cooperation. After the merger with Hydro, Statoil became a partner in Brazil''s offshore Peregrino oil field, which came on-stream in 2011. Under the agreement Statoil became a partner on six offshore licenses, as well as expanding biofuels production. Petrobras and Statoil announced plans to create dozens of refineries in Brazil and the rest of the world where vegetable oil will be added to crude to create a no-sulphur fuel.

    On 4 March 2008, Statoil bought Anadarko Petroleum Corporation''s 50% share of the Peregrino oil field for 1.8 billion USD. At the time of acquiring the license, the field''s recovery factor was estimated to be 9%. However, with the current reservoir depletion plan of the field calling for the use of produced water injection and rock compaction, Peregrino''s recovery factor has increased to 20%. On 24 May 2010, Statoil sold a 40% stake in the Peregrino field to Sinochem, the Chinese state-controlled oil company, for a cash sum of $3.07 billion, but retained 60% and the operatorship.

    On 7 April 2010, Statoil announced finding oil and gas reserves in the Fossekall prospect just north of the Norne oil field in the Norwegian Sea. The proved recoverable oil resources were provisionally estimated at between 37 and 63 million barrels (5,900,000 and 10,000,000 m3), while the volume of associated and free gas was estimated at between 1 to 3 billion standard cubic metres.

    In May 2010, Noble Energy, Inc., operator of the Deep Blue exploration well on Green Canyon 723 in the deepwater Gulf of Mexico successfully reached a depth of 32,684 feet (9,962 m). Statoil holds a 15.625 per cent interest in the Deep Blue well.

    In April 2011, Statoil announced a large new find at the Skrugard prospect in the northern Norwegian Sea (Barents Sea in Statoil terminology) north of the Snøhvit field off Hammerfest. The find was seen as a key find as it could lead to more finds in the region.

    In September 2011 the company announced a large new find at its Aldous Major South prospect on the Norwegian continental shelf. It later amended its estimates up to between 900 million and 1.5 billion barrels of recoverable oil, making it one of the largest ever finds on the shelf. The discovery was made less than 10 feet (3 metres) from where Elf Aquitaine had drilled a dry well in 1971.

    In June 2013 announced a Statoil funded joint venture with Petrofrontier Corp. in Australia. Petrofrontier''s Georgina Basin shale oil and gas bearing structures consistent with other producing areas in Australia and North America. Statoil joins Hess, Santos, Total S.A., and other multi-national oil companies in Australia''s Northern Territory Basins. Statoil''s capital commitment to Petrofrontier $175Million.

    Heritage Oil owns approx. 20% of Petrofrontier.

    Pipeline operations

    Statoil is involved in a number of pipelines, including Zeepipe, Statpipe, Europipe I and Europipe II, and Franpipe from the Norwegian continental shelf to Western Europe in addition to the Baku-Tbilisi-Ceyhan pipeline in Caucasus. The pipelines from Norway are organized through Gassled.

    The company has trading offices for crude oil, refined petroleum products, and natural gas liquids in London, Stamford, Connecticut, and Singapore.

    Retail station operationsStatoil is operator of Statfjord in the Norwegian North SeaMain article: Statoil Fuel & Retail

    The company operated three brands of fuel stations: Statoil, Hydro, and 1-2-3. Statoil operated petrol station services in Denmark, Estonia, Ireland, Latvia, Lithuania, Norway, Poland, Russia, and Sweden. Some fully automated stations are branded 1-2-3. In Sweden the company also operated Hydro stations. In total Statoil had about 2,000 fuel stations. In mid-2008, Statoil service stations in the Republic of Ireland began to rebrand as Topaz, following the acquisition of the company in 2006 by Irish oil firm Topaz Energy Group.

    In first quarter of 2010, Statoil ASA decided to have a new ownership structure for the retail operation. Statoil ASA remained the main shareholder in the new company, Statoil Fuel & Retail ASA. On April 18, 2012 it was announced that Alimentation Couche-Tard will buy Statoil Fuel & Retail for $2.8 billion.


    The heritage of Statoil derives from the three major Norwegian petroleum companies Statoil, Norsk Hydro, and Saga Petroleum (the latter two merged in 1999).

    StatoilSee also History of Statoil (1972–2007).

    Den Norske Stats Oljeselskap A/S was founded as a limited company owned by the Government of Norway on July 14, 1972 by a unanimous act passed by the Norwegian parliament Stortinget. The political motivation was Norwegian participation in the oil industry on the continental shelf and to build up Norwegian competency within the petroleum industry to establish the foundations of a domestic petroleum industry. Statoil was required to discuss important issues with the Minister of Industry, later Minister of Petroleum and Energy. Statoil was also required to submit an annual report to the parliament.

    In 1973 the company started work acquiring a presence in the petrochemical industry. This resulted in the development of processing plants in Rafsnes and, in partnership with Norsk Hydro, the Mongstad plant in 1980. In 1981 the company acquired, as the first Norwegian company, operator rights on the Norwegian continental shelf on the Gullfaks field. 1987-88 saw the largest scandal in the company''s history, the Mongstad scandal that made the until then unassailable CEO Arve Johnsen withdraw.

    In the 1980s Statoil decided to become a fully integrated petroleum company and started building the Statoil fuel station brand. The stations in Norway originated as Norol stations while the stations in Denmark and Sweden were purchased from Esso in 1985, while the stations in Ireland were purchased from British Petroleum in 1992 and ConocoPhilips Jet in the mid ''90s, then sold by Statoil to Topaz Oil in 2006. Statoil also built up a network of stations in part of Eastern Europe in the 1990s.

    In 1991 a controversy arose between Statoil and local environmentalists, mainly from Natur og Ungdom and Friends of the Earth Norway, who protested the building of a new research and development centre at Rotvoll, in Trondheim, Norway, a wetlands area close to the city with significant bird life. The controversy climaxed with civil disobedience by the environmentalists, but the centre was still built.

    The company was privatised and made a public limited company (allmennaksjeselskap) in 2001, becoming listed on the both the Oslo Stock Exchange and the New York Stock Exchange. At the same time it changed its name to Statoil ASA. The government retained 81,7% of the shares. Through further privatization in 2004 and 2005 the government''s share was reduced to 70,9%.

    The Statoil/Horton case refers to the company''s use of bribes in Iran in 2002–2003 in an attempt to secure lucrative oil contracts in that country. This was mainly achieved by hiring the services of Horton Investments, an Iranian consultancy firm owned by Mehdi Hashemi Rafsanjani, son of former Iranian President Hashemi Rafsanjani. Horton Investments was paid $15.2 million by Statoil to influence important political figures in Iran to grant oil contracts to Statoil. The corruption scandal was uncovered by the Norwegian paper Dagens Næringsliv on September 3, 2003.

    Wikinews has related news: Norway purchases Canadian oil sands company

    In 2007 Statoil bought a large area in the Athabasca oil sand field in Canada after purchasing North American Oil Sands Corporation for $2.2 billion. (In 2012, Statoil had 4 oil sand licences (oljesandlisensene ) as part of the Kai Kos Deh Seh project: Leismer, Corner, Hangingstone, and Thornberry.)

    Hydro Main article: Hydro Oil & Gas

    In 1965 Hydro joined Elf Aquitaine and six other French companies to form Petronord to perform search for oil and gas in the North Sea. Hydro soon became a large company in the North Sea petroleum industry, and also became operator of a number of fields, the first being Oseberg.

    Hydro acquired in the late 1980s the Mobil service stations in Norway, Sweden, and Denmark, changing their name to Hydro. In 1995 Hydro merged its stations in Norway and Denmark with Texaco, creating the joint venture HydroTexaco. The service station chain was sold in 2006 to Reitangruppen. In 1999 Hydro acquired Norway''s third largest petroleum company Saga Petroleum, who had major upstream operations primarily in Norway and the United Kingdom. The British operations were later sold.

    MergerThe logo of StatoilHydroThe New York Stock Exchange on June 20, 2011, on the 10th anniversary of when Statoil''s shares were listed.

    A merger proposal was announced in December 2006. Under the rules of the EEA the merger was approved by the European Union on May 3, 2007 and by the Norwegian Parliament on June 8, 2007. Statoil''s shareholders hold 67.3% of the new company, with Norsk Hydro shareholders owning the remaining 32.7%. The Norwegian Government, the biggest shareholder in both Statoil and Norsk Hydro, holds 67% of the company. Jens Stoltenberg, the then Norwegian Prime Minister, commented that he viewed the merger as "the start of a new era...creating a global energy company and strengthening Norway’s oil and gas industry."

    It has been noted within the analyst community that a proposal will create an entity with much more competitive strength versus its much larger European rivals, including BP, Total, and Shell, while also increasing the ability of the company to make strategic acquisitions, particularly in the Gulf of Mexico. It is the ninth largest oil company in the world, and would be the 48th largest company in the world on the current Fortune Global 500 list with a revenue of NOK 480 billion.

    The company''s management team was initially to be led by President and CEO Helge Lund (who previously held the same posts at Statoil), with Eivind Reiten, the President and CEO of Hydro, acting as Chairman. However, Reiten decided to resign as chairman three days after the merger because of a possible corruption case in Hydro''s former oil division. The Vice-Chair and former Minister of Petroleum and Energy Marit Arnstad served as chairperson until 1 April 2008, when Svein Rennemo took up the post on a permanent basis after resigning as the CEO of the Norwegian oil services company Petroleum Geo-Services (PGS).

    To reflect a merger of the two companies and with regards of the minor partner, Hydro, it was decided that the joint company should be given a new name. An actual new name was not decided upon at the time of the merger, and StatoilHydro was created for temporary usage only. The firm announced its intention to revert to the name Statoil ASA, and this was approved by the Annual General Meeting in May 2009. The name was changed on 2 November 2009

    The Norwegian state''s share of the company after the merge was initially 62.5%. As a parliamentary decision in 2001 said it was a goal that the government should own 67% of Statoil, it was announced that the Norwegian government intended to increase its share. In 2009, it was announced that the Norwegian government had reached its goal of obtaining 67% of Statoil''s share.


    In early June 2011, Statoil ASA has divested 24.1% shares in Gassled joint venture for NOK 17.35 billion ($3.25 billion) to Solveig Gas Norway AS and still has 5% shares in the partnership.

    Expansion of resources

    Two large oil reserves, estimated to contain 700 million to 1.5 billion barrels of recoverable oil equivalents, were announced in 2011 and 2012. This included a new discovery in the North Sea of 500 million to 1.2 billion barrels and a find in the Havis Prospect of the Barents Sea of 200 to 300 million barrels of oil.

    In 2011, Statoil bought Brigham Exploration for $4.4 Billion to gain access to its oil shale operations in North Dakota''s Bakken formation. In 2012, Statoil sent 45,000 barrels of oil per day by railroad cars from North Dakota.

    Recent news

    In October 2014, Statoil sold its remaining 15.5 percent stake in the Shah Deniz gas field in Azerbaijan to Petronas for a fee of $2.25 billion.


    In 2006 the company accepted a $ 10.5 million fine for violating the U.S Foreign Corrupt Practices Act.

    Trial against Statoil consultant and two accomplices in 2011

    A Statoil consultant and 2 others were tried in November 2011, for having received 7 million Norwegian kroner, in exchange for contracts and payments totaling "several tenfold" of millions of Norwegian kroner.

    Controversies Corrib gas project Main articles: Corrib gas project and Corrib gas controversy

    Statoil is a partner of Royal Dutch Shell in the Corrib gas project, which entails developing a natural gas field off the northwest coast of Ireland. The project has proved controversial with some Irish residents. In the summer of 2005, five men from County Mayo were jailed for contempt of court after refusing to obey a temporary court injunction forbidding them to interfere with work being undertaken on their land. The ensuing protests led to the Shell to Sea campaign that opposes the project.

    Wikinews has related news: North Sea oil spill is Norway''s second worst
    Management of art collection

    The Statoil Art Programme, which was founded in the mid-1980s, has allegedly had its management breaching the ethical guidelines of International Council of Museums (ICOM), according to one of Aftenposten''s resident critics of art/architecture, as of October 2010.

    North Sea

    In March 2011, Statoil halted work on two North Sea oil field projects because of higher taxes in the U.K. budget. In May 2011 they hired former MI6 chief John Scarlett as a strategic advisor.

    Charges of unethical practices in Athabasca

    In 2012, a British company (Ecclesiastical Investment) announced that they were selling their stake in Statoil, as a result of perceived unethical practices related to Athabasca oil sands projects.


    Tags:Algeria, American, Angola, Arab, Australia, Azerbaijan, BP, Baku, Belgium, Brazil, British, Canada, Canadian, Caucasus, China, Chinese, Connecticut, Denmark, Dutch, Earth, Emirates, Estonia, Europe, European Union, Forbes, France, French, Germany, Hashemi Rafsanjani, Iran, Iranian, Ireland, Jens Stoltenberg, Jet, Libya, London, MI6, Mehdi, Mehdi Hashemi, Mexico, Mobil, New York, New York Stock Exchange, Nigeria, North America, Norway, Norwegian, Oslo, Parliament, Poland, President, Prime Minister, Qatar, Rafsanjani, Royal Dutch Shell, Russia, Shah, Shell, Singapore, Statoil, Sweden, Tbilisi, Texaco, Total S.A, USD, United Arab Emirates, United Kingdom, United States, Venezuela, Website, Western Europe, Wikipedia


    Add definition or comments on Statoil

    Your Name / Alias:
    Definition / Comments
    neutral points of view
    Source / SEO Backlink:
    Anti-Spam Check
    Enter text above
    Upon approval, your definition will be listed under: Statoil