Management Statoil Norway-China Essay

Statoil was established in 1972 as a wholly state owned company. To ensure the best possible control over Norway`s petroleum resources, the government wanted to be the biggest shareholder, as it is today. In 1972, the Norwegian parliament stated that the political motivation was for Norway to take part in the oil industry on the continental shelf, and build up the Norwegian competency within the petroleum industry to establish the foundations of a domestic oil industry.

To acquire knowledge, the company started working in the petrochemical industry. This lead to the development of processing plants in Rafsnes and a partnership with “Norsk Hydro” (merged with Statoil in 2006). Statoil was the first company in Norway to acquire operator rights on the Norwegian continental shelf on the Gullfaks field. Statoil is a Norwegian energy based company with production and industry spread internationally.

It has a highly international business structure with operations in more than 30 countries. Statoil currently operates approximately 80 per cent of Norwegian and gas production. Its international production is increasing every year. Statoil is the worlds largest operator at deep sea petroleum. It is also the 13th biggest oil and gas company in the world with operations in Algeria, Angola, Azerbaijan, Brazil, Canada, China, Iran, Libya, Nigeria, Russia, United States and Venezuela. Statoil is also now looking for possible ventures in Egypt, Mexico, Qatar and United Arab Emirates.

The company also have operating plants in Belgium, Denmark, France and Germany. The company are in other words, increasing their production worldwide. The Norwegian state owns 67% of the shares. The Norwegian Ministry of Petroleum and Energy manages the ownership interest. With a marked value of NOK 465 billion KR ( Statoil is the biggest producer on Norwegian soil. Outside of Norway, Statoil is mainly a participant together with other oil companies on licenses.

This means that the company participates a partner, while other companies is the operators and leading the work on the platforms. Statoil got the first international operatorship of the Lufeng fiels in the south China sea in 1997, and then the Siri field in Denmark 1998. In 2002 the company was awarded an operatorship in Iran. This is one of the worlds largest gas fields in South Pars, and the Plataforma Deltana in Venezuela.

Statoil is a public limited company with a governance structure based on Norwegian law. Statoil’s main share listing is on the Oslo Stock Exchange and the Statoil share is also listed on the New York Stock Exchange. The objective of Statoil is, according to its Articles of Association, to engage in exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products, as well as other business.

Statoil is responsible for marketing and selling the Norwegian state’s petroleum produced from the state’s direct financial interest (SDFI), and for petroleum paid as royalty in kind. (The Statoil book) Statoil’s management system has three main objectives in the company. Statoil is working to incorporate the values, and people and leadership principles in everything they do. To ensure they comply with formal and internal requirements. To drive business performance through high quality decision making, fast and precise execution, and continuous learning.


Statoil also cooperates with Chinese national oil companies. The world is globally smaller and communication and cooperation between countries is a key factor to improve business and business opportunities. Statoil are having close dialogs with chinese authorities in the oil drilling operations. The aim is to develop commercial opportunities in China. in 2007 Statoil officially entered a stratetig cooperation with CNPC to cover both domestic and internation E&P (exploration and production), R&D (research and development), gas value chain and the down stream. Moving on, in february 2010 the first cooperation between Sinopec and Statoil began.

The plan was here to cooperate on the QiongDongNan deep water block in the southern China sea. This was a huge leap towards deep water oil resources. The cooperation between several Chinese international is continuing to grow. To get a clearer picture of the cooperation, we need to look deeper into the history of oil drilling. Statoil and China goes all the way back to the 1980´s. Lufeng 22-1 is a offshore field in the south China sea. Statoil has developed (75%) and operated this platform since 1997 until the field was completed in 2009. This was also in fact Staoil´s first international operatorship.

This was a huge leap for Norway´s biggest offshore oil company and they gained valuable research and experience from this operatorship. Among their offices in Beijing, they opened in 2011 a research center working on seismic images and EOR (enhanced oil recovery) and is currently cooperating on R&D and technology development with the Chinese oil companies and some of the leading universities in China.

They are also recruiting Chinese workforce and engineers for future developments. Statoil is currently exploring new cooperation opportunities with NOCs in China and internationally from their offices in Beijing. They are seeking out competition and bridge building in the Asian market.

References: Furre, Berge (1992). Norsk Historie 1905-1990. Vårt hundreår. Oslo: Det Norske Samlaget Gleckman, Harris (1995), Transnational Corporations’ Strategic Responses to “Sustainable Development: Marketing Management (Kotler, Keller Globsl 14th edtition 2012)

YEarly reportHistory of Statoil (commentery with Helge Lund)The Statoil Book pdf file