- On Its Own
February 14, 1999, Statoil's alliance with British Petroleum
officially terminated due to the merger between BP and Amoco.
Since January 1999, Statoil has begun to position itself as a
major player in Azerbaijan's oil and gas industry. After BP Amoco,
Statoil is the largest foreign oil company in Azerbaijan, if
measured by investment in anticipated oil reserves, such as in
AIOC (8.56%), the Shah Daniz prospect (25.5%) and the Alov prospects
(15%). Statoil and BP were the first foreign companies to establish
an office in Azerbaijan, back in 1992.
Statoil's leadership meets President Aliyev: (l-r) Kjell O.
Kran (Chairman of the Board), Harald Norvik (President and CEO)
and Ellen Mo (Deputy Chairman of the Board).
Statoil hopes to maintain a leading position among the foreign
companies in Azerbaijan well into the next century to become
an operator of new offshore oil fields and pursue a leading role
in oil transportation systems and the gas industry.
Statoil was the first foreign oil company to undertake a major
gas industry study in Azerbaijan, a project carried out jointly
with SOCAR and Azerigaz in 1997. At present, Statoil is carrying
out a feasibility study on commercial gas utilization in Azerbaijan
jointly with BP, SOCAR and Azerigaz.
Statoil's investments in Azerbaijan in 1999 are expected to reach
$60 million and will more than double the following year. From
a $300 million investment level in 2001, Statoil's yearly investments
are expected to average $400 million from 2001 until 2008, based
on the present portfolio of upstream projects but excluding potential
investments in midstream and downstream projects.
Focus on Children
Statoil has been a leading company
in terms of scope and volume
of humanitarian support in Azerbaijan. Many of its projects have
been sponsored jointly with BP. For example, Statoil helps sponsor
psycho-social trauma rehabilitation projects for refugee children
from the Khojali and Shusha regions under the direction of the
Norwegian Refugee Council.
Statoil is also building a school for refugees in Mingachevir,
in the North Central region of Azerbaijan, with Children Aid
Direct. For the past four years, Statoil has funded rehabilitation
projects and support for Internat No. 3 in Mardakan, an orphanage
for mentally handicapped children. Many wives of Statoil employees
volunteer at the orphanage twice a week, caring for the children
and providing medicine, food and clothing.
Statoil has been involved with rehabilitation projects with
orphanages for the past four years.
Statoil, a Norwegian State-controlled oil company, was established
in 1972 and has experienced unprecedented growth into a fully
integrated oil company and works in 27 countries. Statoil is
Europe's largest oil producer and one of the largest oil traders
in the world. It has constructed and operates the world's largest
sub sea gas trunking systems, contracted to supply Europe yearly
with 75 billion cubic meters of Norwegian offshore gas beginning
Since early January, Statoil has moved out of the jointly owned
alliance office in Mirza Mansur Street in Baku's "Inner
City" and established itself in the modern downtown Landmark
complex. The company has 45 employees, of which 70 percent are
(7.1) Spring 1999.
© Azerbaijan International 1999. All rights reserved.
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AI 7.1 (Spring 99)
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