Through effective resource management and the maturing of new projects, Statoil achieved a reserve replacement ratio (RRR) of 128% in 2013. Organic RRR was 147%, which is a record since 1999. Statoil maintained strong project execution through 2013 with projects delivered on cost and ahead of schedule, with strong safety performance.

Statoil announced divestments in 2013 with net proceeds worth a total of more than USD 4 billion, including the divestments of assets on the UK and Norwegian continental shelves to OMV and the agreement to reduce ownership in the Shah Deniz project in Azerbaijan and the South Caucasus Pipeline.

The serious incident frequency (SIF) was 0.7 in the fourth quarter of 2013 compared to 1.0 in the fourth quarter in 2012. For the full year, the SIF improved from 1.0 in 2012 to 0.8 in 2013.

Capital markets update

At its capital markets update in London on 7 February, Statoil will announce its updated outlook for 2014-16.

"The industry is facing demanding challenges and we address these from a position of strength. We have a competitive resource base, a robust financial position and a highly competent organisation recognised for its technological and operational experience," says Lund.

"Our strategy for value creation and growth remains firm, but we are making some important changes. Stricter project prioritisation and a comprehensive efficiency program will improve cash flow and profitability. Our strong balance sheet enables prioritisation of capital distribution to shareholders," says Lund.

Statoil will invest around USD 20 billion on average per year 2014-16. This is a reduction of 8% from previous estimates, mainly due to strict prioritisation and increased capital efficiency.

In the 2014-16 period, Statoil expects to maintain return on average capital employed (ROACE) around the 2013 level based on an oil price of USD 100 per barrel (real 2013). Production growth is estimated around 2 per cent 2013-14 and around 3 per cent organic CAGR from 2013-16 from a rebased equity production of 1,850 mboe per day in 2013.

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