from the ground Up

by Jessica Cheam, The Straits Times, May 26 2009

NORWEGIAN oil giant StatoilHydro yesterday opened a new office in Singapore to serve as its Asia-Pacific headquarters.
The move reflects Asia’s importance to the firm’s growth, said its executive vice-president Jon Arnt Jacobsen.
The group is the world’s third-largest crude oil trader and company chiefs aim to expand its global footprint, particularly in the third-party trading business.
“Our Singapore office remains a cornerstone of this global trading strategy… and the continuous presence in the local markets provides us with hands-on market information,” said Mr Jacobsen.
The firm, which has had a presence in Singapore for 18 years, has moved its 38 staff into its new 11,000 sq ft premises at Ngee Ann City.
Its workforce will grow in the near term as Singapore is used as a base for its Asia operations, said Statoil Asia Pacific’s president, Ms Marthe Hoff.
Asia is increasingly becoming a “natural home” for StatoilHydro’s crude oil production as its international production increases and the Asian market grows, she said.
Statoil’s production is two million barrels of oil per day, of which up to 150,000 barrels are exported to Asia.
The company hopes to raise this number, especially in the trading of crude oil, naphtha and liquefied petroleum gas, to extend its global reach, added Ms Hoff.
“We believe the markets in this region will continue to grow faster than any other part of the world despite the current economic slowdown.”
In the long run, the company hopes to touch 2.2 million barrels per day by 2012, which it will achieve from the increased capacity from sources in the Americas and Brazil.
It is also eyeing Asia to supplement production growth.
Its senior vice-president (international exploration and production), Mr Torgeir Kydland, said energy markets in this region are strong, offering “robust demand for liquified natural gas and are willing to pay high prices”.
Relatively low oil prices in the past year “have not deterred exploration in Asia”, he said.
“There are large amounts of undeveloped resources in the region…we believe we can create value by applying our offshore toolbox.”
As for the recent oil price rebound, Mr Jacobsen said this will be sustainable only when the global economy recovers.
Statoil has had a focus on offshore Indonesia and Australia, but is also exploring other opportunities, such as in China, where the company is currently operating the Lufeng field offshore in the South China Sea.
“We have a long-term view in the Asia-Pacific, pursuing business opportunities, and we will expand our presence when the time is right,” said Mr Kydland.