Kårstø – settlement under a guarantee declaration given by Statoil in 1999

The State, represented by the Ministry of Petroleum and Energy (MPE) has on 29 April 2008 filed a writ of summons with Stavanger tingrett against StatoilHydro ASA. The writ of summons has been filed in order to solve a dispute between the MPE and StatoilHydro ASA regarding the settlement under a guarantee declaration given by StatoilHydro ASA (in 1999: Den norske stats oljeselskap a.s) to the MPE in relation to the construction of terminal facilities at Kårstø, as part of the development of the Åsgard field in the period 1997 – 2000.

The background for the dispute is the excess investment costs relating to the construction of these terminal facilities. The MPE and StatoilHydro ASA have not been able to reach an agreement in the matter, which has therefore now been referred to the courts of law for a final solution.

The excess investment costs of constructing the terminal facilities at Kårstø led to several of the other licensees in the Åsgard field filing claims against Statoil. These licensees have subsequently entered into a settlement agreement with Statoil. According to the guarantee declaration the MPE was entitled to a compensation in the matter corresponding to the one agreed with the other licensees.

In relation to the petroleum activities, the MPE has different responsibilities:

• The role as a prudent manager of the Norwegian petroleum resources and thereby the role as regulating authority – the administrative role
• The role as a direct participant in the petroleum activities through the State Direct Financial Interest (the SDFI) – the commercial role
• The role as:
  o Owner of Petoro AS, and
  o Majority owner of StatoilHydro ASA
  -the ownership role. Since 2001, Petoro AS has been responsible for managing the SDFI on behalf of the State; a task that was held by Statoil from 1973 to 2001.

This case relates to the MPE as a direct participant in the petroleum activities through the SDFI – the commercial role. Statoil was the manager of the SDFI share in Åsgard in the period in question (1997 – 2000). At that time, the SDFI share in Åsgard was 46,95 per cent. Thus, this case is not related to the MPE as majority owner of StatoilHydro ASA. The case concerns issues arising from ordinary commercial petroleum activities at the Åsgard field in which the State took a direct part through the SDFI, and a disagreement relating to the settlement under a guarantee declaration given by Statoil in that respect in 1999.