Hydro agreements in Libya under review

October 1, 2007, 09:42 CEST

The purpose is to clarify whether aspects of this activity might be in conflict with Norwegian or international law.

 Statoil was informed on 26 September of possible consultancy agreements and transactions associated with Hydro’s operations in Libya, which have been transferred to Statoil as part of the merger between it and Hydro’s petroleum business. These aspects had not been made known to Statoil previously.
 Against this background, Statoil initiated a preliminary review of the matter in order to establish the facts as far as possible and to adopt the necessary measures on that basis. The group has also informed relevant Norwegian and U.S. authorities about the information it has received.

 Following a preliminary assessment by Statoil’s corporate audit function, Mr Lund has resolved in consultation with the Statoil board to initiate an external review of the relevant aspects. The U.S. law firm Sullivan & Cromwell will carry out the review together with a Norwegian law firm, supported by StatoilHydro’s corporate audit function. Other consultancy agreements relating to Hydro’s international petroleum operations will also be reviewed.

 Hydro and StatoilHydro will cooperate on securing the documentation and information required to establish the facts of the matter. Since these issueaffect  both Hydro and StatoilHydro, Eivind Reiten, chair of StatoilHydro, has informed that he will not participate in consideration of the issue.

Further information from:

Press:

Ola Morten Aanestad, vice president for media relations, +47 48 08 02 12 (mobile) +47 51 99 13 77 (office)

Kai Nielsen, public affairs manager, +44 78 24 32 68 93 (mobile).