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Norway claims over $1 bil from StatoilHydro over Karsto expansion
LONDON
Petroleumworld.com, April 30, 2008
The Norwegian government is taking legal action to recover more than $1
billion it claims it is owed by the majority state-owned StatoilHydro from a
gas plant expansion project 10 years ago, the company said Wednesday.
The government has filed a writ seeking compensation in connection with
the expansion of the Karsto gas terminal between 1997 and 2000 to handle
additional volumes from the Statoil-operated Asgard field.
Italy's Eni, Finland's Fortum and France's Total, three of the partners
in the Asgard development, sought arbitration against Statoil at the time as
they believed they were being overcharged for the expansion work at Karsto.
The government, which was also a partner in Asgard through the State's
Direct Financial Interest, did not take part in the arbitration as it had
received a declaration from Statoil covering corresponding claims by the
state.
Eni and Fortum withdrew their arbitration request in 2002 at the same
time as Statoil agreed to harmonize ownership interests of fields in the
Haltenbanken area of the Norwegian Sea and allowed the two companies to become
partners in the Mikkel gas field.A similar deal was reached with Total in 2004.
In its writ, the state is mainly demanding assets equivalent to a 46.95%
stake in the Mikkel field license as well as the net return it would have
earned from such an interest from 2002 until the end of 2007.StatoilHydro said this net return was estimated to be around NOK7 billion
($1.36 billion) before tax.According to the state, the ownership interests it is seeking had a value
of NOK4.8 billion before tax as of January 1, 2006, an amount it wants to be
value adjusted to January 1, 2008.If the state's main demand is unsuccessful, its writ demands a settlement
of NOK1.095 billion, plus 5% interest from the start of 2006.
StatoilHydro said it rejected the state's claims.
The Norwegian state is the majority owner of StatoilHydro with a 62.5%
stake in the company.
Story from PLATTS
PLATTS 29 04 08
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