In November 2008, StatoilHydro formed a strategic alliance with Chesapeake Energy Corporation, USA. The deal was completed in December 2008 with the purchase of a 32.5% interest in Chesapeake's Marcellus shale gas acreage in the Appalachia region of the northeastern USA.

We paid USD 1.3 billion in cash and will pay a further USD 2.1 billion in the form of a 75% carry on drilling and completion of wells during the period 2009 to 2012. We have the right to 32.5% participation in additional Chesapeake leases in the Marcellus shale play. In addition, the strategic alliance includes jointly exploring unconventional gas opportunities worldwide. The Chesapeake deal is another step in developing our gas value chain business expertise outside Europe.

In March 2008, we signed an agreement with Anadarko to acquire its remaining 50% interest in the Peregrino heavy oil field in Brazil. The transaction was formally closed on 11 December 2008, making StatoilHydro 100% owner and operator of the field. The sale was effective as of 1 January 2008. Oil production is expected to start in 2011, and StatoilHydro will subsequently become one of the largest foreign oil producers in Brazil.

In 2008, we closed the sale of all our shallow water assets on the shelf in the Gulf of Mexico (GoM) to Mariner Energy, Inc. for a cash consideration of USD 0.2 billion. The transaction was accomplished through the sale of our wholly owned subsidiary Hydro Gulf of Mexico, LLC. The sale was effective as of 1 January 2008. StatoilHydro remains one of the largest acreage holders in GoM deepwater with a strategic focus on high prospectivity deepwater areas.

On 9 February 2008, Sincor in Venezuela was transformed into an incorporated joint venture known as Petrocedeño, S.A. and partially nationalised. Our share was reduced from 15% in Sincor to 9.677% in Petrocedeño. The agreed compensation has been received in full from the Venezuelan government.

Renegotiations of PSAs by the NOC in Libya have resulted in a reduced equity share. Our equity share of production in Murzuq was reduced from 8.0% to 2.4% effective as of 1 January 2008. Renegotiations are ongoing for Mabruk.

In April 2008 we completed the divestment of our interest in the UK fields Dunlin (28.76%) and Merlin (2.35%), the Brent Pipeline system and the Sullom Voe Terminal located on the Shetland Islands to Fairfield and Mitsubishi. The effective date of sale was 1 January 2008.