Den Norske Stats Oljeselskap A.S/ Annual Report and Accounts 1976
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Den norske stats oljeselskap a.s/ Annual report and accounts 1976 statoil Contents Page 3 Board of Directors, Auditor Board of Representatives Page 5 Highlights Page 7 Projects Page 8 Report for 1976 Page 13 Financial Results Page 14 Balance Page 16 Comments Page 19 Cash flow Page 20 Board of Representatives' comments Auditor's Report Page 21 More about the Activities Page 28 Articles of Association Page 29 Participation Agreements Page 30 Administration Den norske stats oljeselskap a.s The Board of Directors Director Finn Lied, Chairman Member of the Storting Ole Myrvoll, Vice-Chairman Member of the Storting Aksel Fossen Secretary Ase Gjerdsj0 County Officer Ottar Vollan District Governor Einar H. Moxnes Economist Hans J. 0degaard ALTERNATE MEMBERS Professor H. J. A. Kreyberg Member of the Storting Kristin L0nningdal Engineer Tore Sund Economist Erik Eik The Board members Gjerdsj0 and 0degaard and the alternate members Sund and Eik are elected by and among the Statoil staff. Auditor Certified public accountant Karl-Johan Endresen Board of Representatives Member of the Storting Egl i Aarvik, Chairman Managing Director Ronald Bye, Vice-Chairman Lord Mayor Arne Rettedal LO-secretary Odd Bakkejord Teacher Grethe Westergaard Bj0rlo Member of the Storting Bodi I Bjartnes Construction worker Harald Schjetne Director Egll Flaatin Geologist Arne Lervik Engineer Ove E. Huus ALTERNATE MEMBERS Secretary Evy Buverud Pedersen Director of Finance Johannes Andreassen Lord Mayor Asbj0rn Jordal Economist Einar Slagstad Engineer lngebret Gausland The representatives Lervik and Huus and the alternate representatives Slagstad and Gausland are elected by and among the Statoil staff. 3 Statoil's investments Proven reserves 0 Service etc. Norwegian shelf LI Refining/Petrochemicals • Transport/Marketing ['.] Offshore field development ~-----------...-ar~----i 2000 l-rr-r-r-r-rrrrrT7iii!l'--"""--''---------11000 Miii. N.Kr. Miii. tom oil equiv. 1500 1000 500 1974 1975 1976 Oil Gas Statoil's sale, crude oil/refined Personnel employed at Statoil products 0 Export ~-----fiR-----~-----t 2000 400 Mill. N.Kr. 1000 100 1974 1975 1976 1972 1973 1974 1975 1976 4 Highlights Amounts in million N. kr. 1976 1975 1974 1973 Sales 1298.3 382.3 98.2 Salaries and social costs 36.1 20.1 8.0 2.1 Depreciation 32.8 1.1 0.3 0.2 Financial expenditures 4.8 7.9 7.0 7.6 Financial result - 134.2 -62.2 - 29.0 - 13.7 Annual investments 1889.8 933.1 64.5 238.3 Total assets 3660.9 1491.6 502.9 359.6 Issued share capital Dec. 31 1551.5 755.0 305.0 155.0 Number of employees Dec. 31 401 244 118 54 5 Projects Company/License Type Activity Statoil Location share Statfjord Oil/gas find 50% Blocks 33/9 33/12 Heimdal Gas find 40% Block 25/4 Frigg Gas find 5% Block 25/1 l Statoil/Esso Group Operator 50% Blocks 15/12 / 15/11, 6/3 Statoil/Texaco/Hydro/Saga ;~~ Group Operator 50% Blocks ;~J 24/11, 24/12 Statoil/Phillips Group Operator 50% Block 1/9 \ Statoil/Esso/Hydro Group Operator 50% Blocks I ' 15/8, 15/9 l/S Noretyl Petrochemicals 33% Bamble '\ l/S Norpolefin Petrochemicals 33,33% Bamble ,,/ Coast Center Base Ltd. & Co. Supply Base 50% Sotra t Norsk Olje a.s Distribution Co. 15% Oslo I Rafi nor Refinery 30% Mongstad \ Norpipe a.s Pipeline Company 50% Stavanger -.) Norpipe Petroleum UK Ltd. Landing Terminal 50% Teesside Statex A/S Seismic Processing 50% Stavanger Sweden 7 Report of the Board of Directors for 1976 General comments reserves, and today deliver approxi of this is approximately 300 million Statoil's fourth year of operations mately 90 per cent of all the oil sold tons. In 1985 the annual production has to a great extent been charac on the international market in the will be able to reach approximately terized by participation in the non-communist world. The 70 million tons of oil equivalents, of development of the Statfjord field dependency upon imports in certain which the Statoil share will make and the carrying out of independent major industrial countries is up 17.8 million. drilling operations on the Norwegian steadily increasing. The OECD area, continental shelf. The first results of thus represents about 90 per cent Exploration this drilling activity have been of the international demand for Statoil exploration activities have positive, in as much as Statoil as petroleum. been extensive in 1976. The company operator has discovered oil and gas has been engaged both in seismic in block 1/9. In 1977, it will be explorations and drilling, partially Norwegian petroleum consumption as operator and partially as a group accertained as to whether the field is limited. Therefore the major portion is commercial. This find is the first participant, together with various of the Norwegian petroleum licensees. significant discovery made by a production in the 1980's will be Norwegian operator in the exported, as crude oil and gas, and North Sea. The company has been in charge partially as refined products. of collecting about 13,500 km of High priority has been given to the seismic profiles. A little more than The main natural market for half of these have been carried out organization and development of Norwegian petroleum exports would safety and environmental controls, by the two Norwegian companies of be Western Europe. Even if the Statex and Geco. The major both with respect to the working production capacity in the OPEC tasks in the North Sea and with portion of the data processing has countries were able to cover the also been carried out in Norway. the aim of possible drilling activities import requirements tor petroleum north of the 62nd parallel. This Explorations north of the 62nd in Western Europe in the next few parallel have for the most part been work has drawn on all available years, Norway's petroleum would be insight and professional competency. concentrated on the charting of of some importance in the West possible drilling sites off the coast European context. The Norwegian of Troms, Vest-Finnmark, M0re As of the end of the 1970's, the continental shelf is centrally located company projects will lead to signi Romsdal, S0r-Tr0ndelag and Nord in relation to possible buyer Tr0ndelag. ficant income and in the early 1980's, countries. It is reasonable to assume to a company profit. One that the consumer countries will In 1976 four new concessions were precondition for the flow of income attempt to reduce their dependency is the investments, which in 1976 distributed on the Norwegian con by securing deliveries from several tinental shelf. Statoil is operator on amounted to approximately sources. Therefore, the Board of 1.9 billion kroner. three of them. In one of the conces Directors is of the opinion that the sions in which Norsk Hydro, Saga company will have good sales pos The 1976 financial results of the Petroleum, and Texaco participate, sibilities for the oil and gas at Its the authorities have decided that company show a deficit of about disposal. 134 million kroner. This loss must be Statoil should pay a certain portion of the exploration costs. In all the evaluated in light of the fact that D The price development the company is still in a phase of other concessions which have been development and investment, in for petroleum distributed in recent years, all costs which costs are accru ed, and The increase in the price of oil from In the exploration phase have been where income wlll begin to flow 1973 to the present has on the covered by the other licensees. on ly after the company projects average corresponded to the general gradually move into operational price increases. D'uring the next The total exploration activities on phases. The sale of refined products few years, there is reason to assume the Norwegian continental shelf in has to a significant degree contri that this development will continue, 1976 have been substantial, with the buted to the deficit. Prices of refined such that petroleum products will drilling of 26 exploration wells. products have not approached maintain their real value. Statoil participated in 16 of these a level that could cover company In the long run, the price develop drilling operations. During the course refining costs. ment for petroleum will be dependent of the year, new hydrocarbon upon the growth in the world deposits have been discovered in By means of direct participation in economy. With continued economic blocks 119, 7/12, 25/2 and 33/9. concessions and operator functions, progress there will be a constantly However, several wells must be Statoil is attempting to promote greater demand for oil and natural drilled in order to establish whether the use of Norwegian goods and gas. This can lead to a situation in these fields are commercial. Statoil services where these are which the price level of these participates as a licensee in all these energy-bearers will gradually reach competitive. blocks, in two of the blocks with the cost level of alternative sources a 50 per cent share or more, of energy which can replace oil and Market prospects depending on the amount of natural gas. The cost level is signifi· production. 0 Market possibilities for cantly higher than today's oil and Norwegian oil and gas gas prices, and it must therefore be On the basis of the parliamentary The annual production of petroleum considered probable that in the long decision made in the autumn of on a world-wide basis has in recent run petroleum prices will show a 1976, Statoil has been transferred years been greater than the annual gradual but real increase.