Statoil, a leading Norwegian integrated oil and gas company faces several risks. These include Capacity Expansion risks, Acquisitions risks, Operations risks, Political risks, Health, Safety, Environmental & Catastrophe risks, Equity Price risks, Foreign Exchange risks, Interest rate risks and Credit risks. The article outlines the risks and the mechanisms Statoil employs to mitigate these risks.
Statoil Norway's oil and gas exploration, production, transport, refining, and marketing giant, operated in 25 countries. Its upstream activities were concentrated on the Norwegian Continental Shelf (NCS), the North Sea, the Caspian Sea, Western Africa, and Venezuela. One of the world's top oil producers, Statoil had proven reserves of 3.7 billion barrels of oil equivalent. It ran 1,400 service stations in Scandinavia and about 500 others in Ireland, Poland, Russia, and the Baltic States. The Norwegian government owned almost 81% of Statoil.
Statoil managed the state's direct financial interest (known as SDFI) in oil and gas partnerships active on the NCS. It also owned the world's largest offshore gas platform, the Aasgard B off Norway's west coast. In addition, Statoil supplied electricity in Norway and Sweden.
Statoil had divested its exploration and production operations in the US, although the country was still a major market for the company's exports: Statoil shipped about 500,000 barrels of oil per day to the US and Canada. It was also a major exporter to Asia.
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