Statoil is presenting the annual and sustainability reports for 2014, together with the new payments to governments report.
“In 2014 we continued to deliver solid operational results. Our production efficiency improved significantly, we are on track with our improvement programmes and we continued to deliver good safety results. However, the profitability of our industry continues to be challenged and Statoil’s financial results are highly impacted by the fall in oil prices,” states Eldar Sætre, president and CEO of Statoil ASA, when commenting on the reports presented.
Statoil delivered annual equity production of 1.927 million boe/d in 2014. This is a result of improved production efficiency and start-up of new fields. The increased production represents a growth of 4% from a rebased 2013 level. Statoil continues to be among the leading exploration companies in the industry and strengthened the reserve base through exploration, adding 540 million bbls of expected resources.
The serious incident frequency (measured as incidents per million hours worked), including Statoil’s employees as well as our suppliers’, decreased from 0.8 in 2013 to 0.6 in 2014. However, this solid result is overshadowed by two fatalities in the contractor workforce in the US onshore operations.
Statoil has also published a sustainability report. Statoil continues to have high sustainability ambitions. One ambition is to be recognised as the most carbon efficient oil and gas producer. The results presented in the sustainability report confirm that Statoil is currently one of the world’s most carbon efficient oil and gas companies.
Statoil’s goal for 2014 was to identify measures that would cut 250 000 t of CO2 emissions from our production. Measures were identified that actually will cut 339 000 t of CO2 emissions. In addition steady progress was made towards meeting the 2020 carbon efficiency targets.
“Statoil takes an active and industrial approach to sustainability. To us, sustainability is a business matter, where the need to remain highly competitive is combined with and strengthened by our efforts to accelerate the development of more carbon-efficient solutions. Being a trusted company with a long-term social license to operate will enhance future business opportunities,” says Sætre.
In December 2013, the Norwegian Parliament adopted a new law that requires disclosure of payments to governments per project, country and government receiver. The purpose of the legislation is to enhance transparency in the extractive industries and to combat corruption. Similar legislation has been adopted by the EU.
Statoil will be the first major oil and gas company that reports in accordance with the new regulations.
“This report, a first of its kind, represents a milestone in transparency efforts both by the Norwegian government and Statoil. Statoil has invested considerable resources to establish new processes and systems for this reporting,” says Sætre.
The payments to governments report is published on Statoil's website and contains detailed information about payments related to the company’s extractive operations in all countries.
Adapted from press release by Joseph Green