Normalised production cost in NOK per boe is used to evaluate the underlying development in production costs. StatoilHydro's international production costs are mainly incurred in USD. In order to exclude currency effects and to reflect the change in the underlying production cost, the USD/NOK exchange rate is held constant at 6.00 when calculating normalised production cost. The normalised figures for the relevant previous periods have been restated in order to facilitate comparison.
 

Entitlement volumes used in the calculation of the normalised production cost per boe have been adjusted for PSA effects.  Higher oil price levels affect the production entitlement volumes negatively, and hence the production unit cost.

Entitlement volumes are highly affected by production sharing agreements (PSA effects). On average, the equity volumes exceeded entitlement volumes by 174 mboe per day in 2008, 115 mboe per day in 2007 and 70 mboe per day in 2006. With the same cost basis but higher volumes, cost per barrel of equity volumes will always be lower than cost per barrel of entitlement volumes. Based on equity volumes average production cost (not normalised) was NOK 34.6 per boe in 2008, compared to NOK 41.4 per boe in 2007 and NOK 27.3 per boe in 2006.