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New electricity strategy

November 7, 2001, 11:00 CET

Statoil is pulling out of the Swedish electricity market and is transferring the household customers in Norway to its subsidiary Meganor.

This decision is part of a revised strategy for Statoil's Nordic energy unit in the Manufacturing & Marketing business area.

The group has been selling power to households in Norway since 1997 and in Sweden since 1999.

“This commitment hasn’t lived up to our expectations, so the business is being restructured,” says Ulrik Olbjørn, vice president for electricity in Nordic energy.

The whole electricity business in Sweden, which embraces 60,000 private customers, will be sold to Öresundskraft with effect from 1 January 2002.

Statoil's 48,000 electricity customers in Norway will be transferred to Meganor in the first quarter of 2002. Statoil is considering reducing its share in Meganor over time.

Heating oil, paraffin and wood pellets will remain Statoil’s most important energy products for the Norwegian and Swedish household markets.

They come in addition to the automotive fuels and other products and services supplied by the group’s service stations.

Statoil will be making an even stronger commitment to supplying power to the Norwegian business market, where its electricity provision has been very well received.

It also intends to step up its commitment to selling gas, oil products and energy solutions to the business sector in Norway and Sweden.

Statoil’s annual report for 2000 announced that operations in the Nordic energy unit would be assessed. A strategic review of the business was launched in connection with the group’s initial public offering (IPO) this summer.

The new strategy builds on exploiting the advantages offered by Statoil’s access to oil and gas.

It also calls for the group to be in markets where it can secure low unit costs and good profitability, and puts customer needs at the centre of attention.