The Norwegian State versus Statoil ASA – settlement under guarantee declaration – decision by Stavanger tingrett

Stavanger tingrett has today decided a case raised by the Norwegian State represented by the Ministry of Petroleum and Energy against Statoil ASA. The dispute concerns whether Statoil ASA is obliged to render a settlement to the State under a guarantee issued to the State in 1999, in connection with modifications of the terminal at Kårstø as part of the Åsgard development. The court has accepted that the State is entitled to a settlement and that Statoil is liable to make a payment to the State under the guarantee. The payment is set to approximately NOK 694 mill. including interest. The court decision confirms the State’s claim for compensation under the guarantee issued to the State in 1999. The State will now further study the decision.

The case is based on other licensees at Åsgard declaring arbitration against Statoil with regard to allocation of costs of modifications on the terminal Kårstø as part of the Åsgard development.  The arbitration was settled in January 2002. The State did not participate in this arbitration, but received instead a guarantee ensuring the State a corresponding treatment as the plaintiffs. Statoil has denied any liability under the guarantee, and it was therefore necessary to bring the issue to court for decision. The court decision confirms the State’s entitlement to a compensation under the guarantee issued to the State in 1999.