History of Statoil (1972–2007)

Den Norske Stats Oljeselskap A/S (Norwegian State Oil Company) was founded as a private limited company owned by the Government of Norway on 14 July 1972 by a unanimous act passed by the Storting, the Norwegian parliament. The political motivation was Norwegian participation in the oil industry on the continental shelf and to build up Norwegian competency within the petroleum industry to establish the foundations of a domestic petroleum industry. Statoil was required to discuss important issues with the Minister of Industry, later Minister of Petroleum and Energy. Statoil was also required to submit an annual report to the parliament.

In 1973, the company started work acquiring a presence in the petrochemical industry. This resulted in the development of processing plants in Rafsnes and, in partnership with Norsk Hydro, the Mongstad plant in 1980. In 1981 the company acquired, as the first Norwegian company, operator rights on the Norwegian continental shelf on the Gullfaks field. 1987–88 saw the largest scandal in the companies history, the Mongstad scandal that made the until then unassailable CEO Arve Johnsen withdraw.

The company was privatised and made a public limited company (allmennaksjeselskap) in 2001, becoming listed on both the Oslo Stock Exchange and the New York Stock Exchange. At the same time it changed its name to Statoil ASA.

In December 2006 Statoil revealed a proposal to merge with the oil business of Norsk Hydro, a Norwegian conglomerate.[2] Under the rules of the EEA the proposal was approved by the European Union on 3 May 2007[3] and by the Norwegian Parliament on 8 June 2007.[4] Former Statoil's shareholders hold 67.3% of the new company StatoilHydro, which started operations on 1 October 2007.[3][4] The company is the biggest offshore oil and gas company in the world.[4]

In November 2009, StatoilHydro changed its name to simply Statoil, following a prolonged name debate that sparked considerable public interest.[5][6]

In 1991 there arose a controversy between Statoil and local environmentalists, mainly from Natur og Ungdom and Friends of the Earth Norway, who protested the building of a new research and development centre at Rotvoll in Trondheim, Norway, wetlands area close to the city with significant bird life. The controversy was climaxed with civil disobedience by the environmentalists, but the centre was still built.

The Statoil corruption case refers to the company's misconduct and use of corruption in Iran in 2002/2003 in an attempt to secure lucrative oil contracts in that country. This was mainly achieved by hiring the services of Horton Investments, an Iranian consultancy firm owned by Mehdi Hashemi Rafsanjani, son of former Iranian President Hashemi Rafsanjani. Horton Investments was paid US$15.2 million by Statoil to influence important political figures in Iran to grant oil contracts to Statoil. The corruption scandal was uncovered by Norwegian paper Dagens Næringsliv on 3 September 2003.

Statoil was a partner of Royal Dutch Shell in the Corrib gas project, which entails developing a natural gas field off the west of Ireland. The project has proved controversial. In the summer of 2005, five men from County Mayo were jailed for contempt of court after refusing to obey a temporary court injunction forbidding them to interfere with work being undertaken on their land. The ensuing protests led to the Shell to Sea campaign that opposes the project.