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Selling EMGS

June 9, 2004, 15:30 CEST

Statoil Innovation AS is to sell all its shares in Electromagnetic GeoServices AS (EMGS) to American investment fund Warburg Pincus.

The latter also intends to acquire the 3.9 per cent interest held by the Norwegian Geotechnical Institute (NGI), as well as a number of shares held by employees.

Due to be finalised around the end of June, these transactions will make the US company the main shareholder in EMGS with approximately 90 per cent of the shares. Management and employees of EMGS hold the remainder of the shares.

"We consider this to be a good industrial solution for EMGS," says Thor Egil Five, president of Statoil Innovation. "And we believe that the new owners will be well able to develop the company further as an important player in this field."

EMGS was established during 2002 in the mid-Norwegian city of Trondheim to develop and commercialise a technology which utilises electromagnetic energy to investigate the sub-surface. It has 35 employees and had a turnover of NOK 125 million in 2003.

Statoil Innovation is responsible for commercialising technology and expertise developed by the group through the start-up of new companies.

A wholly-owned Statoil subsidiary, Statoil Innovation also invests in attractive external companies which support the group’s technology strategy.