Continued Deliveries in Turbulent Markets

Statoil today presents its fourth quarter results and its Strategy Update. Statoil's fourth quarter 2009 net operating income was NOK 33.5 billion, compared to NOK 37.8 billion in the fourth quarter of 2008. In 2009, net operating income was NOK 121.6 billion compared to NOK 198.8 billion in 2008. Statoil's growth strategy remains firm.

"Statoil continues to deliver solid economic and operational results in a demanding market. The activity level is high, and our production is growing according to plans," says Statoil's CEO Helge Lund.

Fourth quarter and annual results 2009

The quarterly operating income was NOK 33.5 billion, compared to NOK 37.8 billion in the same quarter last year. It was mainly affected by a 48% drop in natural gas prices and a 55% reduction in refining margins. This was only partly compensated by a 17% increase in the average prices for liquids measured in NOK, and a 4% growth in lifted volumes of oil and gas.

Adjusted earnings in the fourth quarter 2009 were NOK 34.4 billion, compared to NOK 43.4 billion in the fourth quarter of 2008.

Net income in the fourth quarter of 2009 was NOK 7.1 billion compared to NOK 2.0 billion in 2008. This result reflects higher oil prices and increased lifting, lower net financial losses and lower tax rates compared to 2008, partly offset by lower gas prices and refining margins. In 2009, net income was NOK 17.7 billion, compared to NOK 43.3 billion in 2008.

Adjusted earnings after tax was NOK 9.7 billion in the fourth quarter of 2009. Adjusted earnings after tax excludes the effect of tax on net financial items, and represents an effective adjusted tax rate of 72% in the fourth quarter of 2009. In 2009, adjusted earnings after tax was NOK 38.3 billion and the effective adjusted tax rate was 71%.

The board of directors is proposing a dividend of NOK 6.00 per share for 2009.

Statoil's equity production in 2009 was 1,962 mboe per day, a 2% increase from last year. During 2009, the equity production outside Norway reached 500 mboe per day, and continues to grow.

"The reserve replacement ratio of 73% for 2009 is improving from a low level, and based on our continued exploration success and growth portfolio, I am confident that we will improve this ratio going forward. Statoil has a high quality portfolio of non-sanctioned projects that will create attractive returns foStrategy Update

"During the latter part of 2009, the global economy showed signs of recovery. However, we will still see uncertainty in the global markets," says Lund.

In 2010, Statoil estimates an equity production between 1,925-1,975 mboe per day. The range reflects the continued uncertainty regarding the demand for gas, and our value driven gas business. During 2010 several new projects are planned to come on stream, with start-ups scheduled towards the latter part of the year. Morvin, Gjøa, Vega, Vega South and Leismer Demo are all scheduled to start in the fourth quarter. Statoil's gas and oil production capacity is