In 2009, Statoil delivered total liquids and gas entitlement production of 1.806 mboe per day, up 3% from 1.751 mboe per day in 2008. The contribution from international operations reached the highest level yet, accounting for approximately 20% of the entitlement production. Total equity production increased by 2% from 2008, to 1.962 mboe per day in 2009.

Despite strong production and increased contribution from higher volumes, net operating income was down 39% at NOK 121.6 billion in 2009, compared with NOK 198.8 billion in 2008. The decrease was mainly attributable to lower prices for oil and gas and increased depreciation, amortisation and impairment losses. Having realised approximately 80% of the expected synergies from the merger, Statoil has reduced overall expenses, reduced expenditures related to logistics and procurement, improved operational efficiencies, and increased value creation through commodities trading.

Statoil delivered an extensive exploration programme in 2009. Of a total of 70 exploration wells completed before 31 December 2009, 29 were drilled outside the NCS. Forty wells were announced as discoveries, seven of which are located outside the NCS. In 2009, 481 mmboe were added through revisions, extensions and discoveries, compared with additions of 230 mmboe in 2008, also through revisions, extensions and discoveries.

In all, Statoil achieved a reserve replacement ratio of 73% in 2009. By comparison, an estimated 650 billion boe of new resources were added to overall resources through exploration and business development, preparing the ground for growing proven reserves in future.

Statoil maintained a high level of activity in progressing projects into production in 2009. Four projects on the NCS and two international projects came on stream in 2009. Eight new projects have been sanctioned for development in 2009, three of which are outside Norway.

In 2009, the group gained access to 13 new exploration licences in India, Canada, GoM, Libya, Brasil and the Faroe Islands. On the NCS, we were awarded access to 13 new licences, as operator for six and as partner in seven. We were also awarded five licence extensions, as operator for four and partner in one. In addition, the group signed a contract with Lukoil and the Iraqi government concerning an 18.75% interest in the West Ourna 2 field in Iraq.