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Revised targets for production

May 29, 2002, 10:00 CEST

A new Statoil production target for 2007 was unveiled by chief executive Olav Fjell today, 29 May, during the Capital Market Day presentation. Almost 100 investors, analysts and journalists are attending this meeting to learn about the group’s strategic opportunities and future challenges.

At 1.26 million barrels of oil equivalent per day, the 2007 target represents an extension of the existing 2004 goal and assumes that output will continue to grow by four per cent annually.

Statoil’s ambition is to double production from its international operations during the period, while maintaining output from the Norwegian continental shelf at one million barrels per day.

“The NCS still offers great opportunities for a long time to come,” Mr Fjell emphasised.

He added that Statoil aims to keep NCS output at a million barrels per day beyond 2007, but that this would be conditional on access to promising new exploration acreage.

“We’ve been through an extraordinary year since our stock market listing, but the group is sticking to the 2004 targets it communicated during the initial public offering,” Mr Fjell said.

Statoil has improved its competitiveness through cost reductions totalling NOK 4 billion since 1998.

It has also become 50 per cent bigger by acquiring part of the state’s direct financial interest (SDFI) in Norwegian petroleum operations.

Mr Fjell also noted that earnings must rise by NOK 3.5 billion to meet the commitment to a 12 per cent return on capital employed. Click here to see the key figures.

As a main player in the European gas market, Statoil will be involved in a liberalisation process with more gas sold spot. Mr Fjell also wanted to see a substantial increase in sales to the UK.

By 2012, he hoped that the group would derive 40 per cent of its oil and gas production from international operations – compared to a target of 10 per cent in 2004.

This depended on Statoil changing from a regional oil company under strong government influence to a world-class international oil and gas operator in selected areas.

See the chief executive's presentation.