Transactions with the Norwegian State

For a description of shares held by the Norwegian State, see report section 7.8 Shareholder information-Major shareholders. See also report section 4.2.3 Financial performance-Liquidity and capital resources-Material contracts for details on the merger between Statoil and Norsk Hydro's oil and energy activities.

Transactions with other entities in which the Norwegian State is a major shareholder

As a result of the substantial proportion of industry in Norway controlled by the Norwegian State, there are many state-controlled entities with whom we do business. The financial value of most such transactions is relatively small, and the ownership interest of the Norwegian State of such counter parties has not had any effect on the arm's-length nature of the transactions. In particular, in respect of the goods and services that we purchase, we purchase telephone services from Telenor ASA, a telecommunications company in which the Norwegian State holds a 53.97% interest. Such purchases are made pursuant to standard tariff rates applicable to public and private companies in Norway.

Other transactions with the Norwegian State

Total purchases of liquids and natural gas from the Norwegian State amounted to NOK 112,682 million (223 mmboe) in 2008, NOK 98,498 million (237 mmboe) in 2007 and NOK 104,628 million (254 mmboe) in 2006. Purchases of natural gas from the Norwegian State (excluding purchases from licences and sales on behalf of the Norwegian State) amounted to NOK 375 million in 2008, NOK 287 million in 2007 and NOK 293 million in 2006. The prices paid by StatoilHydro for the oil purchased from the Norwegian State are estimated market prices. In addition, StatoilHydro sells the Norwegian State's natural gas, in its own name, but for the account and risk of the Norwegian State.

The Norwegian State compensates us for its relative share of the costs related to certain StatoilHydro natural gas storage and terminal investments and related activities. See report section 3.10.8 Operational review-Regulation-Marketing and sale of the SDFI's oil and gas for more details.

Although StatoilHydro is majority-owned by the Norwegian State, it does not receive any preferential treatment with respect to licences granted by or under any other regulatory rules enforced by the Norwegian State.

Employee loans

We have a general arrangement with DnB NOR whereby DnB NOR makes available to each of our employees personal consumer loans of up to NOK 300,000. The employees pay the "norm interest rate", which is variable and set by the Norwegian State, and we pay the difference between the norm interest rate and the then-current market interest rate. We also guarantee these loans up to an aggregate maximum amount of NOK 10 million. The repayment period is up to eight years. Our obligations resulting from paying the interest rate difference will be dependent on the loan volume, but based on current interest rates would not exceed NOK 5 million per year.

Three employee-elected members of the board of directors and one member of the executive committee each entered into loan agreements under this facility prior to 30 July 2002, and had, as of 31 December 2008, an aggregate total balance outstanding payable to DnB NOR under this loan facility of NOK 628,180. Members of the executive committee and the board of directors may not take up loans under the foregoing programme.

Employees in certain employment levels are entitled to an interest free car loan from the company. Members of the executive committee and employee elected members of the board are generally excluded from this arrangement. As of 31 December 2008 none of the members of the executive committee had such loans, while one of the employee elected members of the board had a loan balance of NOK 260,555.