Methanol in euros
Half the turnover for Statoil's Methanol business area has been converted to the new euro currency.
These sales go exclusively to chemical companies and refineries in Europe, and prices in this market have been primarily denominated in Deutschmarks and US dollars.
"Most of our customers will be converting to the euro as fast as possible, but some have experienced practical problems with the transition," says marketing vice president Jan Wahlqvist in Methanol.
Methanol prices are listed quarterly, and Mr Wahlqvist expects them to be denominated in euros rather than Deutschmarks from the next quarter.
The conversion means fewer foreign exchange transactions for the group, reducing its costs. Methanol has experienced no practical problems with converting, because it has only had to define a new currency in the accounting system.
Since Statoil entered the methanol market in mid-1997, it has secured 13 per cent of the European market. A total of 700,000 tonnes worth some NOK 500 million is shipped annually from the Tjeldbergodden plant in mid-Norway.