OSLO, Norway, April 11, 2003 (PRIMEZONE) -- A new principle is being adopted by Statoil ( OSE: STL) (NYSE:STO) (Other OTC:SLDKF) from the first quarter of 2003 for calculating the internal price of gas delivered between two of its business areas. Covering deliveries from Exploration & Production Norway to Natural Gas, this change is intended to provide more transparency in the calculation. It also reflects the alterations which have taken place over the past years in the gas market and the Norwegian system for gas sales. Following the shift from a process led by the Gas Negotiating Committee (GFU) to company-based gas sales, it is appropriate to focus less on individual fields and more on each company's total gas portfolio.The change will have no consequences for the group's overall results or cash flow. It increases the internal price of gas, and all gas in Statoil's portfolio -- including associated volumes -- now has the same internal price.
A gas price of NOK 0.32 per standard cubic metre (scm) at an oil price (Brent Blend) of USD 15 per barrel will be the starting point for the calculation. From this base, the figure will change in line with movements in the oil price. The average oil price over the six months preceding the calculation will influence the gas price in accordance with the following formula:
Price = (NOK 0.32/scm)*(average oil price over six months)/US $15
This calculation will be updated on a quarterly basis and posted to Statoil's website. For the second half of 2002, the reference oil price is US $26.9 per barrel and the internal price for gas is NOK 0.57 per scm for the first quarter of 2003.
Earnings before interest and taxes (EBIT) for E&P Norway and Natural Gas have been changed for each quarter of 2002, and for 2000 and 2001 as a whole. The results are shown in the table.
Changed Changed Old internal New internal
Period EBIT* EBIT* price NOK/scm price
E&P Norway Natural NOK/scm
Gas
4th NOK 9.9 NOK 1.3 0.40 0.55
quarter 02 bn bn
3rd NOK 7.7 NOK 1.3 0.35 0.49
quarter 02 bn bn
2nd NOK 8.7 NOK 1.6 0.29 0.43
quarter 02 bn bn
1st NOK 7.7 NOK 2.3 0.38 0.48
quarter 02 bn bn
Total 2002 NOK 34.0 NOK 6.4 0.36 0.49
bn bn
2001 NOK 40.9 NOK 8.0 0.47 0.59
bn bn
2002 NOK 48.5 NOK 6.1 0.40 0.55
* EBIT = earnings before interest and taxes, adjusted for special
items.