Statoil presents annual and sustainability reports for 2016
March 17 2017 - 10:02AM
Today 17 March, Statoil (OSE:STL) (NYSE:STO)
is presenting its annual report and annual report on Form
20-F for the year ended 2016, and also its sustainability
report.
In 2016, oil prices were below USD 30 per barrel and while
prices increased towards the end of the year, Statoil's average
realised liquids price was still below USD 40 per barrel for the
year as a whole.
"We delivered our cost improvement programme above target. The
next step will be to go from project mode to a culture of
continuous improvements, and we have set a target of achieving USD
1 billion in additional cost improvements in 2017," writes
president and CEO of Statoil ASA, Eldar Sætre in a letter to fellow
shareholders.
"By reworking solutions from reservoir to market, we have
transformed our opportunity set. The break-even price for our 'Next
generation' portfolio of projects is now at USD 27 per barrel of
oil equivalents," Sætre writes.
Statoil delivered annual equity production of 1,978 million
barrels of oil equivalents per day in 2016, a slight increase from
2015 due to continued high production efficiency and despite high
turnaround activity. Organic capex for 2016 was USD 10.1 billion, a
USD 3 billion reduction from the original guiding. Statoil
completed 23 exploration wells in 2016 and continued to replenish
the portfolio, adding close to 25,000 square kilometres of acreage
for new opportunities going forward.
We had a contractor fatality during construction work in South
Korea, and on 29 April we lost 13 colleagues when a helicopter
crashed on its way from Gullfaks B to Bergen. For the year as a
whole, the serious incident frequency came in at 0.8, an increase
from the two previous years.
"We are not satisfied with this development and have taken
several steps to reinforce safety measures throughout the company,"
Sætre says in the letter.
Embedding sustainability firmly into our
strategy
The Annual Sustainability Report offers an overview of
ambitions, policies and performance on a wide range of
sustainability related themes, including UN Sustainable Development
Goals and the Paris agreement. In 2016 Statoil's total payment to
governments was 6.5 billion USD. Statoil's total purchases of goods
and services was 18 billion USD.
Statoil reduced its total CO2 emissions with 600 000 tonnes from
2015 to 2016. The report also shows the robustness of Statoil's
portfolio in a low carbon world, illustrated by a resilience test
of Statoil's value in a low carbon scenario (using the
International Energy Agency 450 scenario). On March 9 Statoil
launched a climate roadmap. The roadmap details targets for CO2
emission reductions and improved carbon intensity performance,
energy efficiency as well as growth in renewables and low carbon
solutions. This will further strengthen Statoil's industry
leadership in climate performance.
"'High value, low carbon' is at the core of our sharpened
strategy. We believe the winners in the energy transition will be
the producers which can deliver at low cost and with low carbon
emissions," writes Sætre.
"We believe a low carbon footprint will make us more competitive
in the future. We also believe there are attractive business
opportunities in the transition to a low carbon economy. Statoil
intends to be part of this transformation in order to fulfill our
purpose of turning natural resources into energy for people and
progress for society. Our climate roadmap explains how we plan to
achieve this and how we will develop our business, supporting the
ambitions of the Paris climate agreement," writes president and CEO
Sætre.
Statoil's annual report on Form 20-F will be filed today with
the U.S. Securities and Exchange Commission or SEC. A PDF copy of
the annual report, which includes the annual report on Form 20-F,
may be downloaded from Statoil's website, www.statoil.com, where
shareholders may also request a hard copy of the annual report free
of charge.
Cautionary Note regarding Forward Looking
Statements
This press release contains forward-looking statements,
particularly regarding Statoil's cost, cost improvement and safety,
security and sustainability outlook and ambition. Forward-looking
statements reflect current views with respect to future events and
are, by their nature, subject to significant risks and
uncertainties because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by the forward-looking
statements. Additional information, including information on
factors which may affect Statoil's business, is contained in
Statoil's annual report and annual report on Form 20-F filed with
the SEC.
This information is subject to the disclosure requirements
pursuant to section 5 -12 of the Norwegian Securities Trading
Act.
2016 Annual Report and Form 20F 2016 Sustainability report
Contacts
Investor relations
Peter Hutton, senior vice president
+44 7881 918 792 (mobile)
Press
Bård Glad Pedersen, vice president Media relations
+47 918 01 791 (mobile)
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