Statoil ASA is a public limited company organised under the laws of Norway. The company has business operations in 41 countries and territories. The largest offices are in Stavanger, Bergen and Oslo, and the group had approximately 31,700 permanent employees as of 31 December 2011. Of this total, approximately 10,400 were employees of the Statoil Fuel & Retail ASA group, in which we held a 54% majority ownership interest as of 31 December 2011.

The combined exploration and production business had an average equity liquids and natural gas production of 1,850 mmboe per day in 2011. Proved reserves at the end of 2011 were 2,276 mmboe of oil and 3,150 mmboe of natural gas, corresponding to aggregate proved reserves of 5,426 mmboe.

Statoil are among the world's largest net sellers of crude oil and condensate, and we are the second largest supplier of natural gas to the European market. The company has also substantial processing and refining operations, and is contributing to the development of new energy resources, have ongoing activities in the areas of offshore wind and biofuels, and is at the forefront of the implementation of technology for carbon capture and storage (CCS).

In further developing our business, Statoil aims to grow and enhance our portfolio over the coming years so that it will ultimately be more valuable, more robust and more sustainable beyond 2020. The strategic focus in these endeavours will be to access exploration acreage and unconventional reserves, secure operatorships, build cluster positions, manage asset maturity, de-risk positions and demonstrate the intrinsic value of the portfolio.

A new corporate structure was implemented with effect from 1 January 2011. The changes were made in order to simplify the organisation, enhance value creation and clarify internal accountability. Statoil reports its business in five reporting segments that are based on the new corporate structure: Development and Production Norway (DPN), Development and Production International (DPI), which combines the D&PI and DPNA business areas, Marketing, Processing and Renewable Energy (MPR), Fuel & Retail (SFR) and Other, see note 4 Segments, to the Consolidated financial statements for additional information. Activities relating to the Exploration business area are allocated to and presented in the respective Development and Production segments. The Other reporting segment includes activities in TPD, GSB, CFO and Corporate Staff and Services.

Development and Production Norway (DPN)
DPN comprises the upstream activities on the Norwegian continental shelf (NCS). DPN has ownership interests in exploration acreage and developed fields on the NCS, and participates in 227 licences, of which 171 are operatorships. DPN is the operator of 44 developed fields on the NCS. Total production amounted to 1.316 mmboe per day in 2011, representing 71% of Statoil's equity production.

Development and Production International (DPI)
DPI comprises the upstream activities in both the North America and the worldwide upstream activities that are outside the NCS. Total production amounted to 534 mboe per day in 2011, representing 29% of Statoil's equity production.

Marketing, Processing and Renewable Energy (MPR)
MPR comprises our marketing and trading of oil products and natural gas; transportation, processing and manufacturing; the development of oil and gas value chains; and renewable energy. MPR's ambition is to maximise value creation in Statoil's midstream, marketing and renewable energy business.

Exploration (EXP)
EXP is an integrated business area responsible for creating a global centre for exploration and deploying resources to priority activities across the portfolio. Main focus areas are accessing high potential new acreage in priority basins, globally prioritising and drilling more high impact wells in growth and frontier basins, delivering near field exploration on the Norwegian continental shelf and other select areas, and achieving step change improvements in performance.

Technology, Projects and Drilling (TPD)
TPD's main focus areas is to provide safe, efficient and cost-competitive global well, project delivery, technology excellence and R&D. Cost-competitive procurement is an important contributory factor, although group-wide procurement services are also expected to help to drive down costs in the group.

Global Strategy and Business Development (GSB)
GSB sets the corporate strategy, business development, and merger and acquisition activities (M&A) for Statoil. Main focus areas of the GSB business area is to closely link corporate strategy, business development and M&A activities to actively drive Statoil's corporate development.

Fuel & Retail (SFR)
After the successful listing on the Oslo Stock Exchange in October 2010, Statoil's remaining ownership share in the listed company Statoil Fuel & Retail ASA, is 54%. SFR is fully consolidated in Statoil's financial statements, and is reported as seperate reporting segment followed up by the CFO area. SFR is a leading road transportation fuel retailer that is present in eight countries in Scandinavia, and Central and Eastern Europe. SFR is also involved in the sale of stationary energy, marine fuel, aviation fuel, lubricants and chemicals. As of December 2011, SFR had a network of 2,305 service stations in its eight countries of operations. Statoil Fuel & Retail also markets refined products directly to consumer and industrial markets.