Norway: Statoil Delivers Record Results, CEO Says

February 8, 2012

Statoil’s fourth quarter 2011 net operating income was NOK 60.7 billion, a 42% increase compared to NOK 42.8 billion in the fourth quarter of 2010.

In 2011, net operating income was NOK 211.8 billion compared to NOK 137.3 billion in 2010.

“Statoil delivered record financial results, further improved safety and made important strategic progress in 2011,” says Helge Lund, Statoil’s president and CEO.

The production for 2011 was in line with expectations. During 2011 Statoil completed 41 exploration wells, 22 of which were discoveries.

“We delivered strong exploration results in 2011, adding more than 1 billion barrels to Statoil’s resource base. Making high impact discoveries in the mature North Sea as well as in the Barents Sea reaffirms the potential of the Norwegian continental shelf,” says Lund.

Statoil achieved a reserve replacement ratio (RRR) of 1.17 in 2011, of which the organic RRR was above 1.0. The RRR for oil was 1.45, including the effect of sales and purchases.

“We have in recent years consistently strengthened our resource base, bringing us to a new level. Our current resource base supports a continued strong reserve replacement going forward,” says Lund.

The serious incident frequency (SIF) improved from 1.4 in the fourth quarter of 2010 to 0.9 in the fourth quarter in 2011. For the full year, the SIF was reduced from 1.3 in 2010 to 0.9 in 2011.

Equity production was 1,975 mboe per day in the fourth quarter of 2011 compared to 1,945 mboe per day in the fourth quarter of 2010. Total equity production was 1,850 mboe per day in 2011, compared to 1,888 mboe per day in 2010.

Cash flows from operations, combined with proceeds from Statoil’s continued portfolio optimisation, have been strong in 2011. Strategic portfolio optimisation in 2011 includes closing the sell down in Peregrino and Kai Kos Dehseh oil sands, the Gassled divestment, the asset deal with Centrica on the NCS as well as the Brigham acquisition.

“The development of Statoil’s project portfolio and strong exploration performance solidify Statoil’s strengths on the NCS and further expand the international position,” says Lund.