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Statoil Energy sale planned

October 14, 1999, 10:00 CEST

Plans to sell US subsidiary Statoil Energy are being considered by Statoil as part of work to restructure its corporate operations.

The group aims to concentrate its activities on core areas, such as the Norwegian continental shelf, Venezuela, Azerbaijan, western Africa and the European gas market. It also intends to extend its position in the Nordic energy sector.

Statoil Energy is a total supplier to the US energy market, covering gas production, electricity generation, and energy marketing and trading.

Over the 12 months to the end of September, its operating profit came to USD 63.7 million on revenues of USD 4 billion.

Ranked as one of the fastest-growing energy companies in America, Statoil Energy also owns the largest gas reserves in the north-eastern US and is one of the nation's largest electricity traders.

"To execute its business plans effectively, Statoil Energy needs substantially to increase the scale of its operations," comments Johan Nic Vold, chairman of the subsidiary.

"The resources required to achieve such scale cannot realistically be supplied by Statoil alone since there are numerous international investment opportunities competing for our limited capital."

Credit Suisse First Boston has been engaged to advise on a sale.