Through this merger, our ability to fully realise the potential of the NCS was strengthened and our chances of succeeding as an international player improved. As a result of the merger, we are the largest international oil and gas company operating in water deeper than 100 metres. The financial and other information in this report effect the developments of the former Statoil ASA and Hydro Petroleum on a combined basis for all period presented.
Statoil was founded by a decision of the Norwegian Storting (parliament) in 1972 and incorporated as a limited company under the name Den norske stats oljeselskap a.s. Wholly owned by the Norwegian State, the company’s role was to be the government’s commercial instrument in the development of the oil and gas industry in Norway. In 2001, the company became a public limited company listed on the Oslo and New York stock exchanges, and it changed its name to Statoil ASA.
Norsk Hydro’s involvement in the oil and gas industry started in 1965, when it was awarded licences by the Norwegian State to explore for petroleum on the NCS.
Hydro participated in the discovery of the Ekofisk field in 1969 and the Frigg field in 1971. The development of these discoveries brought it into the petroleum refining and marketing business. In 1975, it began oil refining operations at Mongstad in Norway.
In 1974, Mobil discovered the Statfjord field in the North Sea, which was to have enormous significance for further developments. During the development of Stat-fjord, one of the world’s largest offshore oil fields, we encountered great challenges. Statfjord came on stream in 1979 and Stat-oil took over as operator eight years later. StatoilHydro has a 44% interest in the field.
The 1980s saw us become a major player in the European gas market through large sales contracts for the development and operation of gas transport systems and terminals.
During the same decade, we were heavily involved in manufacturing and marketing in Scandinavia and we established a comprehensive network of service stations. We acquired Esso’s service stations, refineries and petrochemical facilities in Denmark and Sweden.
The 1990s were characterised by intense technological development on the NCS. StatoilHydro became a leading company in the fields of floating production facilities and subsea developments. We grew strongly, expanded in product markets and increased our commitment to international exploration and production in alliance with BP.
In recent years, our business has grown as a result of substantial investments, including several acquisitions, such as Saga Petroleum AS in 1999, several major acquisitions in the Gulf of Mexico, acquisitions of oil sand leases in Canada in 2007, the 24% equity interest in the Shtokman Development Company and most recently the acquisition of the remaining share in the Peregrino field in Brazil (the transaction is subject to government approval), in which we also become the operator. For more information on this aquisition, see the report section Operational review-International E&P.
