Except as set forth below, we are currently not aware of any legal proceedings or claims that we believe could, individually or in the aggregate, have significant effects on our financial position or profitability or on the results of our operations or liquidity.
The AFT case
Statoil ASA issued a declaration to the Norwegian Ministry of Petroleum and Energy (MPE) in 1999 in connection with a dispute between four Åsgard partners and Statoil related to the construction of new facilities for the Åsgard development at the Kårstø Terminal. The declaration confirmed that the MPE will receive similar treatment as the four Åsgard partners with respect to the disputed issues. On the basis of the declaration, the MPE alleged the right to compensation and initiated legal proceedings against Statoil on 29 April 2008 in a writ involving a multi-component claim. The aggregate principal exposure for the claim was estimated to be between NOK 4 and 7 billion after tax. Following a verdict in Stavanger district court on 15 January 2010, Statoil and the MPE on 5 March 2010 reached an amicable settlement of the case pursuant to which both parties waived their rights to appeal the court verdict. Under the terms of the settlement, Statoil has agreed to pay the MPE a cash compensation of NOK 500 million after tax, and NOK 375 million in pre-tax interest, corresponding to NOK 270 million after tax.
During the fourth quarter of 2008, ExxonMobil, the final Åsgard partner at the time of the original dispute, issued a writ with a compensation claim approximating an estimated exposure of up to NOK 1 billion after tax. The dispute with ExxonMobil was settled in October 2009, and the impact of this settlement on the consolidated financial statements was not material.
The Libya case
Statoil was informed on 26 September 2007 about possible consultancy agreements and transactions associated with Hydro's petroleum activities in Libya, which were transferred to Statoil as of 1 October 2007 as part of the merger with Hydro's petroleum business, and which could be in conflict with applicable Norwegian and US anti-corruption legislation. Following a preliminary assessment by Statoil, an external review was initiated of the relevant aspects. The external US and Norwegian legal counsels that have conducted the review submitted their report to Statoil ASA's CEO on 6 October 2008. The report has also been submitted to the National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway (Økokrim), the US Department of Justice, the US Securites and Exchange Commission and the Libyan authorities. The report does not draw any legal conclusions. In accordance with the mandate for the review, the report sets out the facts relevant to applicable Norwegian and US anti-corruption legislation to which Statoil ASA may be subject as a result of the merger. On 15 May 2009, Økokrim announced it would not open an investigation related to the international activites of the former Hydro Oil & Energy. Neither the US authorities nor the Libyan authorities have initiated any actions or proceedings in relation to the matters described in the investigation reports.
