The State vs. Statoil ASA – payment under a guarantee declaration – settlement

The State, represented by the Ministry of Petroleum and Energy  and Statoil ASA have today agreed to settle a case concerning payment under a guarantee declaration issued by Statoil ASA to the State in 1999.

- I am satisfied with the result and pleased that this case is now solved once and for all after all these years, says Minister of Petroleum and Energy Terje Riis-Johansen. 

On 15 January 2010, Stavanger tingrett decided a case raised by the Norwegian State against Statoil ASA. The dispute concerned whether Statoil ASA was obliged to render a payment 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 field development. The court decided that Statoil was to pay to the State approximately NOK 694 mill. including interest. The time limit for appealing the Court’s decision expires on 5 March 2010.

The case is based on other licensees at Åsgard declaring arbitration against Statoil with regard to allocation of costs of modifications on the terminal at Kårstø, as part of the Åsgard field 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.

The settlement implies that Statoil ASA shall pay to the State an amount of NOK 875 mill including interest. This payment represents a full and final payment of all claims put forward by the State against Statoil ASA in the lawsuit decided by Stavanger tingrett. Both parties have at the same time obliged themselves to not appeal the decision made by Stavanger tingrett.