Selling out of Industrikraft Midt-Norge

July 2, 2007, 14:30 CEST

Statoil is selling its interest in Industrikraft Midt-Norge AS (IMN) to Norske Skog.

IMN's combined heat and power station (CHP) project is now entering a new phase. It will be integrated with regional industry.

In addition, power generation will now be based on gas and biomass.

When IMN were granted a licence to build an 800 megawatt power station at Skogn, mid-Norway, in 2000, the plan was to base all production on gas.

"Recent developments in the project mean that Statoil's participation no longer forms a natural part of it," says Helene Berggren who has represented Statoil on IMN's board.

Norske Skog and NTE, the two regional partners, will now be able to acquire up to a 40% interest each.

"By selling off our 20% interest we made it possible to allow access to more locally integrated interests and an industrially appropriate ownership structure," says Ms Berggren.

"We have particpated in IMN since its establishment in 1997. It's positive that the CHP project will be taken a step further with a new ownership structure better integrated with other industrial activities in the region."

Following implementation of the changes, share ownership of IMN will be as follows:
NTE 40%
Norske Skog 40%
Trondheim Energiverk 10%
Elkem 10%

Cathrine Torp, vice president, communication, Manufacturing & Marketing, mobile +47 41 56 02 64