Hydros oil and gas activities to merge with Statoil

Hydros oil and gas activities to merge with Statoil

The Board of Directors of Hydro and Statoil have agreed to recommend to their shareholders a merger of Hydro’s oil and gas activities with Statoil. This will make the Norwegian company the world’s largest offshore operator with a presence in nearly 40 countries.

It is only the oil and gas activities of Hydro that will be merged with Statoil. Hydro’s aluminium business in South East Asia and elsewhere will continue its planned development unaffected by the merger of the oil activities with Statoil.

The merger is subject to approval by the general meetings of the two companies. They are expected to be held during second quarter 2007. Final closing is expected to be in the third quarter 2007. In the meantime, Hydro and Statoil will be managed as separate companies.
The company will be given a new name as part of the integration process.

Eivind Reiten is proposed as Chairman of the Board of the new company while Helge Lund is proposed as President and Chief Executive Officer.

The following have been appointed to key positions in the new company:

Eldar Sã¦tre (Chief Financial Officer), Tore Torvund (Exploration and Production Norway), Peter Mellbye (International Exploration and Production), Morten Ruud (Projects), Margareth ã˜vrum (Technology and New Energy), Rune Bjã¸rnson (Natural Gas), Jon Arnt Jacobsen (Manufacturing and Marketing) and Hilde Merete Aasheim (Head of Group functions).

The business address of the merged entity will be in Stavanger. Group functions will be located in both Stavanger and Oslo, and the CEO will operate out of both locations. Main business areas and operations will be managed from Bergen, Oslo and Stavanger.

A dedicated team led by Hilde Merete Aasheim will be appointed to plan and execute an efficient integration process. There will be equal job opportunities for Hydro and Statoil employees in the new company.

Following the transaction, the new company will employ 31,000 people, of which about 5,000 from Hydro’s Oil & Energy business area, Hydro IS Partner and other personnel supporting Hydro’s current oil and gas activities. Hydro’s hydropower and solar activities will remain with Hydro, as will Oil & Energy Projects personnel working on aluminium projects.

The recommended merger is driven by an ambition to grow in Norway and internationally. Personnel reductions in overlapping functions are expected to be limited and take place through internal replacement or natural turnover.

“This is a historic milestone. The time is right for one strong Norwegian-based energy champion. We are creating a stronger and more competitive company. Combining the best of both organizations, we will significantly improve our competitive position internationally and promote long-term vitality of the Norwegian Continental Shelf,” said Helge Lund, President and CEO of Statoil.

Where in South East Asia?

In South East Asia, Statoil is present only in Singapore on this adress: Statoil Asia Pacific Pte Ltd 435 Orchard Road #10-04/06 Wisma Atria Singapore 238877 Tel:+65 62 33 65 33, +65 62 33 65 22 (trading)

Fax:+65 67 36 36 11, +65 67 36 36 22 (trading)

Hydro Aluminum has offices in three countries in the region: Singapore: Hydro Aluminium Asia Pte. Ltd. 150 Beach Road, Gateway West #25-05/08, Singapore 189720 Singapore Tel: +6 562 950 990

Fax: +6 562 933 863

Malaysia: Hydro Aluminium Malaysia Sdn. Bhd. Lot 4, Jalan Pekeliling Pasir Gudang Industrial Estate Pasir Gudang 81700 Johor Malaysia Tel: +60 7 25 41 90 3

Fax: +60 7 25 24 93 3

Hydro Aluminium Malaysia Sdn. Bhd. Sales Office Block G-611, Phileo Damansara 1, No 9, Jalan 16/11 46350 Petaling Jaya Selangor Malaysia Tel: +60 3 7957 2080

Fax: +60 3 7956 6157

Philippines: Nordisk Aviation Services Philippines Corporation Room 212, Miascor Cargo Centre Ninoy Acquino Avenue Paranaque City, 1704 Metro Manila Philippines Tel: +6 328 528 892

Fax: +6 328 528 874

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