Statoils office in Singapore was established in 1991 in order to handle the sales and marketing of crude oil, refined products and natural gas liquids in one of the world's fastest growing regions.
Singapore has increased in importance for Statoil in the last few years. In addition to Asian oil trading activities, Singapore is currently a regional hub for our activities for our upstream International Business Development and business development within Natural Gas.
In addition , there are also representatives in Singapore to follow up construction projects for rigs and off-shore production units taking place in Singapore on behalf of Statoil.
Asia is the fastest growing energy market and is increasing its influence on the global market. Hence, Asia is key in growing Statoil’s global trading:
- Continuous local market presence provides us with hands-on market information; information utilised to support our global arbitrage trading
- Competence on local price setting is increasingly important for price setting globally
- Develop and attract competence and talents
Statoil has set ambitious targets for increasing our third party trading and are well on the way to becoming an oil trader with a global reach.
Our trading has a solid foundation in our equity volumes and strong infrastructure position on the NWE. However, our global trading ambitions are a natural progression as our production is becoming more international. We will further internationalise our organisation, business build and infrastructure positions.
We regularly sell crude from West Africa and Azerbaijan to Asia and we still se the occasional North Sea cargo. We are increasingly participating in regional trading activity based on 3rd party crude from the Middle East and Russia.
To facilitate this increased shipment to Asia we have increased our share in the Yousu storage facility in Korea. With its large capacity and excellent port facilities enabling the discharging fully laden VLCCs, break bulk and sell smaller parcels to customers in the region. This is a cornerstone in our trading activity and our ambition to ensure safe and efficient logistics in our marketing and trading activities.
Statoil’s is a major global LPG trader - with a strong brand and trust in market also in Asia. Our strong position in Europe with world class export facilities (storage and jetties) has made it natural for us to participate in the global trade flows. Statoil is one of few organizations with active trading in all regions.
The LPG production will increase in Middle East and Africa linked to new LNG plants, but with steady demand growth in Asia. This gives Statoil an opportunity to grow its regional and global trading in Asia Pacific.
Statoil is also a large producer of Naphtha and we have facilities in Norway that provide logistical advantages through our ability to load large cargoes. We have in the last few years had a fairly steady flow of cargoes going from the West coast of Norway to north east Asia. We expect this to continue and we have ambitions to increase our presence in the Asian Naphtha markets.
Personal contacts and long-term thinking are crucial for making deals in the world of international oil trading. Statoil can build on a long-established presence in Singapore, and is further developing these activities in Asia.