We visited the company’s oil sands leases in Alberta to take a closer look at the opportunities for growth in Canada and the challenges involved.
We are an upstream focused and techno-logy-driven energy company with strong gas and downstream positions.
With continued focus on HSE as a competitive advantage and a basis of our operations, we concentrate our efforts on four areas:
- Maximising long-term value creation from the NCS
- Building profitable international growth
- Developing profitable midstream and downstream positions
- Creating a new platform for new energy
In the short term, we plan to focus on predictable and efficient operation by realising the potential value resulting from the merger of Statoil ASA with the oil and gas assets of Norsk Hydro ASA. In the longer term, our focus will be on developing prospects and projects that will enable us to excel and profitably grow. We endeavour to act in a responsible and sustainable manner by continuously improving energy and environmental efficiency in our production processes.
Maximising long-term value creation from the NCS
As a consequence of the merger of Statoil ASA with Norsk Hydro ASA’s oil and gas assets, we are in a unique position on the NCS. Our combined asset base, experience and technical know-how will enable us to fully utilise these resources. The NCS portfolio is expected to continue to be the company’s core activity area, income generator and technology base for many years to come.
We believe the potential for further exploration on the NCS is significant, and we aim to be the industrial architect and driving force in utilising this potential to the maximum. We will strive to improve HSE performance, regularity and drilling efficiency, we will use Improved Oil Recovery (IOR) measures where appropriate and maximise the potential of the merged company. Our focus will be on delivering results and optimising our portfolio in order to maximise value creation.
Building profitable international growth
The company’s growth beyond 2012 is mainly expected to take place in the international arena. Our short to medium-term focus is on delivering our current projects on time, at agreed cost and quality. We plan to make the most of our NCS resources, capabilities and technical experience to develop new business opportunities internationally.
In the longer term, we believe that growth in our international assets will transform the structure and profile of the company. We expect to become more diversified, not only in geographical terms, but also in terms of production methods. This was demonstrated through the acquisition of the Canadian company North American Oil Sands Corporation (NAOSC) and the development of the Peregrino field (heavy oil) off the coast of Brazil, both of which present new challenges and opportunities in terms of applying our technology and experience to a different type of oil production than in the North Sea.
In connection with the company’s international growth our main focus will be on utilising our core expertise in areas such as deepwater, harsh environment, heavy oil and gas value chains to exploit new opportunities around the world. We believe that our skills, experience and technological ability will give us a competitive advantage in these areas. We intend to achieve this growth through an ambitious exploration programme, developing and delivering from our current international assets, and, as appropriate, acquiring new assets which complement our portfolio.
Developing profitable midstream and downstream positions
Compared with many of our peers, we have a strong upstream focus in terms of our total value and asset base. However, we also have a sizeable midstream and downstream portfolio in retailing, marketing, trading, refining and storage of oil and gas products. We are one of the largest seller of crude oil in the world, and our refineries, gas processing plants and service stations support our upstream positions. Our ambition is to maximise value for the company by making the most of the opportunities which these value chains represent.
Creating a platform for new energy
We are a leading industry player in the field of carbon capture and storage. Our ambition is to further develop our technology and capabilities in this area to create a profitable business and to reduce emissions. We are also looking into the opportunities for commercially sound investments in renewable energy chains. We have initiated projects in the areas of wind power and biofuels, setting the stage for further expansion in this area, such as offshore wind farms.
