In 2008, StatoilHydro delivered total liquids and gas entitlement production of 1.751 mboe per day, up 2% from 1.724 mboe per day in 2007. The contribution from international operations reached a record high and accounted for 18% of entitlement production. Total equity production increased by 5% from 2007, to 1.925 mboe per day in 2008. Strong production and high prices contributed to a net operating income of NOK 198.8 billion in 2008, compared with NOK 137.2 billion in 2007. The increase was mainly due to an increase in realised prices for both liquids and natural gas, measured in NOK, and was only partly offset by increased operating expenses caused by a higher activity level and new, more expensive fields coming on stream.
StatoilHydro delivered an extensive exploration programme in 2008. Of a total of 79 exploration wells completed before 31 December 2008, 40 were drilled outside the NCS. Thirty-five wells were declared as discoveries, eight of which are located outside the NCS. An additional eight wells have been completed since 31 December 2008. In 2008, 230 mmboe were added through revisions, extensions and discoveries. In total, the company achieved a reserve replacement ratio of 34% in 2008. By comparison, an estimated 3.5 billion boe were added to overall resources through exploration and business development, preparing the ground for growing proved reserves in future periods.
StatoilHydro maintained a high level of activity in progressing projects into production in 2008. Seven projects on the NCS and six international projects came on stream in 2008, and we also sanctioned 13 new projects for development, four of which are outside Norway.
During 2008, the group gained access to 20 new exploration licences in the Gulf of Mexico, Alaska, Brazil, Canada and the Faroe Islands. On the NCS, we were granted access to 12 new licences, as operator in nine and as partner in three. In addition, the group acquired a 15% interest in the Goliat field and a 10% interest in the Ragnarrock discovery on the NCS. Pursuant to an agreement with Chesapeake Energy Corporation, StatoilHydro acquired a 32.5% interest in the Marcellus shale gas acreage in the USA. Statoilhydro also completed the purchase of the remaining 50% interest and became the operator of the Peregrino development off the coast of Brazil.
The report for 2007 was the first annual report in which financial statements for the merged StatoilHydro organisation were presented. Historical data were restated as if the merged company had existed for all periods.
