A new organisation for the Statoil parent company will be introduced with effect from 19 June.
A protocol signed by chief executive Olav Fjell and the leaders of all the unions in the parent company spells out how personnel are to be redeployed.
All employees will be transferred to the new organisation, which is being dimensioned in relation to Statoil's expected workload at the end of 2000.
This means that the workforce will be downsized by about 700 people.
The reduction is due to be gradually introduced in line with the decrease in workload and with efficiency gains, and will be fully implemented by the end of 2001.
A number of other efficiency improvements have also been identified for reaching the target of a further NOK 1 billion in cost savings on top of the NOK 3 billion which are already decided.
The union officials have declared in writing that they do not share the management's ambitions for cost reductions and for a new dimensioning of the workforce.