Operating in 12 countries, M&M runs two refineries, one methanol plant, two crude oil terminals, an extensive distribution network and around 2300 petrol stations.
In 2007, M&M continued to focus on streamlining the portfolio by investments and divestments, standardisation and simplification throughout the whole business area to create more value and an efficient and value chain-focused organisation.
We will contribute to the integrated value chain for oil by developing selected competitive positions. We aim to maximise the value of crude oil production and increase the value of the group’s upstream portfolio.
Global oil trading
With an average sales volume of 2.1 million barrels per day in 2007, StatoilHydro still ranks as one of the world’s largest net sellers of crude oil.
With an average sales volume of 2.1 million barrels per day in 2007, StatoilHydro still ranks as one of the world’s largest net sellers of crude oil.
Even though the NCS equity production of crude oil is decreasing, we continue to strengthen our global trading positions and have increased our trading flexibility through third-party volumes. An average volume of 524 thousand third-party barrels per day was sold in 2007, an increase of approx 25% from 2006.
We aim to continue to strengthen our global trading position by establishing physical trading infrastructure and establishing a presence in selected regions, based on equity production. To attract third-party volumes, we also plan to evaluate infrastructure assets independently of our own equity production.
Another focus area is the increased trading activity in new products emerging from the carbon dioxide market, the use of bio-components in transportation and the substitution of energy carriers.
Robust manufacturing
There has been high activity within modifications and maintenance throughout the year to increase the robustness and maintain high regularity at our plants. This high activity, combined with a challenging contractor market, has required increased management attention to HSE, efficiency and prioritising.
There has been high activity within modifications and maintenance throughout the year to increase the robustness and maintain high regularity at our plants. This high activity, combined with a challenging contractor market, has required increased management attention to HSE, efficiency and prioritising.
We expect to increase the robustness of our manufacturing facilities by further exploiting technology in order to improve availability, optimise maintenance and increase HSE performance. We will focus on increasing the energy efficiency of our manufacturing facilities.
We will also endeavour to implement cost efficient and flexible liquid transportation solutions. We will seek to add value by implementing logistics solutions which will reduce feedstock costs and provide the flexibility required to handle high TAN and heavy crude oil.
Mongstad continued its good regularity (97.8%) in 2007, but Tjeldbergodden had an extended turnaround and a shut down due to a stop in gas deliveries (30 days) and Kalundborg had a very large turnaround which lasted for 62 days.
Focused energy and retail business
We have maintained our leading energy and retail positions, and are number one or two in most of the markets in which we operate.
We have maintained our leading energy and retail positions, and are number one or two in most of the markets in which we operate.
The restructuring and optimisation of the portfolio that started in 2004 with the buy back of ICA’s 50% share of Statoil Detaljhandel Scandinavia AS, and the sale of Statoil Ireland in 2006, continued in 2007. During the year we sold our energy and retail business on the Faroe Islands, and entered into a purchase agreement with ConocoPhillips Scandinavian JET branded retail network (271 unmanned service stations). This agreement, still pending approval from the EU commission, will further
strengthen our position in Scandinavia and put us in an even better position to follow up consumers’ needs and consumption patterns.
Leading supplier of biofuels
We have continued our efforts to build a position as the leading supplier of biofuels during 2007. Biofuels are now available at more than 1,300 service stations in seven different countries. Biofuels may help reduce emissions of greenhouse gases in the transport sector. We want to further develop our biofuel strategy in order to ensure that also the processing and procurement of biomass are performed in a sustainable manner.
