Statoil: USD 2.65 bn transaction to capture value and focus the portfolio

Statoil: USD 2.65 bn transaction to capture value and focus the portfolio 
STAVANGER, NORWAY -- (Marketwired) -- 08/19/13 --  Statoil ASA (OSE:
STL, NYSE: STO) has signed an agreement to divest minority interests
in the Gullfaks and Gudrun fields offshore Norway and exit the
non-core, non-operated Schiehallion and Rosebank fields, West of
Shetlands. 
In addition to the cash consideration of USD 2.65 billion, the
transaction with Austrian oil and gas company OMV includes a
contingent payment and involves a partnership between the two
companies. Statoil reduces its ownership share in Gullfaks from 70 %
to 51 % and from 75 % to 51 % in Gudrun, and retains its
operatorships on both fields. 
"Through this transaction, Statoil captures value created through
asset development and unlocks capital for investment in high return
projects in core areas. This includes our recent discoveries on the
Norwegian continental shelf. We continue to deliver on our strategy to
create value through active portfolio management and to further
increase our financial flexibility," says Helge Lund, Statoil's
president and chief executive officer. 
Statoil expects to recognize a gain from the transaction estimated to
be between USD 1.3-1.5 billion, to be adjusted for activity between
the effective date 1 January 2013 and the closing date. 
The transaction will enable Statoil to redeploy around USD 7 billion
of capital expenditure, around USD 5.5 billion of which is pre-2020
(excluding potential investments in the recent Shetland/Lista
discovery at Gullfaks). 
Entering partnership 
OMV is an established company on both the Norwegian (NCS) and the UK
(UKCS) continental shelves. Statoil and OMV enter into a partnership
including potential cooperation on exploration opportunities across
Norway, the UK and the Faroese Islands as well as the development of
Enhanced Oil Recovery (EOR) technologies. 
"Statoil is pleased to strengthen the partnership with OMV on the
Norwegian Continental shelf. OMV is already a valued partner in Edvard
Grieg and Aasta Hansteen, and this agreement enables our companies to
develop the cooperation further," says Lund. 
"I believe this is a win-win deal for Statoil and OMV. Apart from the
assets, I am especially proud that we can partner with a world-class
leader in offshore and EOR technology", says Gerhard Roiss, chief
executive officer of OMV. 
Demonstrating the value of Statoil's NCS and UKCS portfolio 
The transaction builds on Statoil's offshore competence and
experience, and track record of realising value through asset
development and portfolio management. 
As operator of the Gullfaks field, Statoil has added substantial
value through successful efforts to maximise oil recovery and recently
announced a new discovery in the Shetland/Lista formation. As part of
the transaction, Statoil captures upside from this discovery through a
contingent payment of 6 USD per boe of reserves developed. 
Gudrun is on track for production start-up in the first quarter of
2014. As the operator, Statoil is executing the development on time
and below original cost estimates. Today's transaction demonstrates
the value of efficient project execution in an asset where Statoil
increased its ownership in 2010. 
Statoil remains committed to growing its business on the UKCS and is
the operator of large field developments including the Mariner project
and exploration licenses. By divesting non-core,
non-operated
developments in the West of Shetlands, Statoil further focuses its UK
portfolio. 
Statoil's production from the divested assets in the first half of
2013 was approximately 26 thousand barrels of oil equivalent per day
from Gullfaks. Production impact for Statoil from the transaction is
estimated to around 40 thousand barrels of equity oil equivalent per
day in 2014 and 60 boe per day in 2016. 
The effective date for the transaction is 1 January 2013. Closing is
expected around year end 2013, pending government and partner
approvals. 
Total proceeds of around USD 15 billion have been realized through
divestments by Statoil since 2010, enabling the company to redeploy
resources to core, high return upstream projects. 
Bank of America Merrill Lynch and Lambert Energy Advisory Limited
were financial advisors to Statoil on this transaction. 
Investor and analyst conference 
There will be a conference call with President and CEO Helge Lund and
CFO Torgrim Reitan on 19 August at 13.30 CET. Please dial in 10
minutes prior to conference start to the following numbers: 
*
Local - Oslo, Norway: +47 23162787 
* Local - London, United Kingdom: +44(0)20 3427 1903 
* National free phone - United Kingdom: 0800 279 5004 
* National free phone - United States: 1877 280 2296 
* National free phone - Norway: 800 56054 
Please enter confirmation code 6859711. 


 
 
Transaction overview
 
Field        Operator     From  To  Licenses                    Partners
 
 Gullfaks     Statoil      70%   51% PL050                      Petoro 30 %
                                     PL050B
                                     PL050C
                                     PL050D
                                     PL037B
                                     PL037E
                                     PL152
                                     PL277
 
Gudrun       Statoil      75%   51% PL025, PL187              GdF Suez 25%
 
Schiehallion BP (33.35%)  5.88% 0%  P 559 (in Block 204/25a)  Shell 54.90%,
                                     directly                    OMV 5.88 %
                                     P 556 via UUOA
                                     P 803 via UUOA
 
 Rosebank    Chevron (40%) 30%  0%  P 1026 (in Blocks 213/26b   OMV (20%),
                                     and 213/27a)                DONG (10%)
                                     P 1191 (in Block 205/1A)
                                     P1272 (in Block 205/2A)

 
About Statoil 
Statoil ASA is an international energy company with operations in 34
countries. Building on 40 years of experience from oil and gas
production on the Norwegian continental shelf, we are committed to
accommodating the world's energy needs in a responsible manner,
applying technology and creating innovative business solutions. We
are headquartered in Stavanger, Norway, with approximately 23,000
employees worldwide, and are listed on the Oslo and New York stock
exchanges. 
About OMV 
OMV, headquartered in Vienna, is Austria's largest listed industrial
company. The company has its primary activities within Exploration &
Production, Gas & Power and Refining & Marketing. In its core
countries in Romania and Austria, OMV is focusing on reducing the
natural decline and on enhancing the recovery rates from mature
fields. Future growth is expected to come via new field developments,
exploration and acquisitions internationally. OMV has been active in
Norway since 2006 and holds 23 offshore licenses on the NCS,
including 6 licenses awarded in 2013 as part of the 22 licensing
round. Norway is one of the key growth areas for OMV. OMV (Norge) AS
is headquartered in Stavanger. 
This information is subject of the disclosure requirements pursuant
to section
5-12 of the Norwegian Securities Trading Act. 
Presentation Equity story: 
http://hugin.info/132799/R/1723583/574439.pdf 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 
(i) the releases contained herein are protected by copyright and    
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: Statoil via Thomson Reuters ONE 
[HUG#1723583] 
For more information: 
Investor relations
Hilde Merete Nafstad
senior vice president
Investor Relations
Tel: +47 957 83 911 
Media relations
Jannik Lindbaek Jr
vice president
Media Relations
Tel: +47 97755622 
Fredrik Norman
Media Relations
Tel: +47 918 66 567