StatoilHydro’s first annual result is strong, and we are in a good position to achieve long-term growth and increased value creation for our shareholders.
The potential for improvement on the Norwegian continental shelf and the opportunity to participate in the development of the Shtokman project support the rationale behind the merger as well as being early indications of the opportunities and potential it has created.
I have long focused on the fact that the industry is increasingly characterised by high complexity. This will continue to influence our activities in the time ahead. This coincides with a period during which the industry is operating at almost full capacity, and in which the competition for opportunities and expertise is becoming tougher and tougher.
The merger of Statoil ASA and Norsk Hydro’s oil and gas activities was carried out in record time. Less than one year elapsed from the proposal was launched until StatoilHydro became a reality on 1 October 2007. The merger is a forceful response to the challenges facing the industry. Our industrial freedom of action has increased as a result of our broader geographical presence and bigger portfolio. Our ability to take on and execute large, complex projects has been strengthened. In terms of finance and organisation, we have increased our capacity and ability to manage the commercial risks that characterise today’s industrial landscape.
The merger is used as a catalyst for operational improvement through the use of best practice. Employees and managers at all levels have made an enormous effort. Good cooperation with the employees’ organisations and representatives has been a very important contribution to the good result achieved so far.
StatoilHydro is an ambitious company. We will set high goals for ourselves, and we aim to win against international competition, but win the right way. That is why we run our activities with a high degree of openness and within a clear performance framework defined by our values and our principles for HSE, ethics and leadership. Safe and efficient operations are our most important task. High-quality operations protect employees and equipment and increase shareholder values. This is a prerequisite both for securing our “licence to operate” from society and for our ability as an employer to attract new generations of talent.
Our strategy is to realise the full potential of the Norwegian continental shelf while at the same time developing strong international positions. Developments in 2007 underpin this strategy. The merger was important in itself. In addition, we established new platforms for long-term growth in Canadian oil sands and offshore in Russia through our participation in the Shtokman Development Company.
Through Ormen Lange and Snøhvit, we have put two very complex industrial projects into production that have provided us with important experience. Promising exploration results in Azerbaijan, the US Gulf of Mexico and Algeria, as well as many discoveries on the Norwegian continental shelf, have strengthened the basis for our ambitions for growth in the future.
Increasing attention is being devoted to the climate challenge. We will contribute to both meeting the world’s increasing energy needs and reducing the increasing emissions of greenhouse gases.
Our ability to develop industrial solutions can prove to be a competitive advantage in the future. StatoilHydro is making active endeavours to reduce carbon dioxide emissions. Through our focus on energy efficiency and cleaner core business, we produce oil and gas offshore with the lowest emissions per produced unit in the world. We also utilise our experience in the field of carbon capture and storage in our work on new projects. If we succeed in this area, we can contribute to reducing global greenhouse gas emissions as well as creating new business opportunities for ourselves.
StatoilHydro will also increase its investment in renewable energy over time, particularly in areas where we have natural advantages. Our involvement in bio-fuel is based on our broad experience of the development and marketing of refined products. Correspondingly, we will also utilise the offshore expertise we have gained through nearly 40 years of operation on the Norwegian continental shelf in the development of offshore windmills. We will continue to look for business opportunities with a clear industrial basis where our participation can create added value.
StatoilHydro has embarked on a journey, a journey that involves developing the company into a global energy company. In order to succeed, we must combine safe and efficient operations with the ability to meet increasing complexity with technology development and creativity. Our motivated and highly qualified employees and our strong industrial position give us an excellent starting point for creating substantial values for our owners and society around us.
