ExxonMobil – 2008, a good year for the operations in Norway

ExxonMobil maintained its position as the country’s second largest oil company, being a substantial contributor to the Norwegian society in many ways.

ExxonMobil paid NOK 45 billion in taxes to the Norwegian society in 2008. Over the last 15 years, the company has invested more than NOK 90 billion in Norway, which i.a. has contributed to securing Norwegian jobs. Furthermore, our company also contributes to local communities through sponsoring of sports, culture, education, and other beneficial social activities.

Below you find some information and key figures from our activities in Norway in 2008:

Sales revenues of NOK 90 billion in 2008

The sales revenues of ExxonMobil (1) in Norway was NOK 90 billion in 2008 – an increase of 16 % from 2007.

10% of Norwegian oil and gas production

In 2008, the company totally produced approximately 422,000 barrels oil equivalent per day – which is equal to around 10% of the total Norwegian oil and gas production. Approximately 70 percent of the total production are liquids, i.e. crude oil, condensate and NGL (Natural Gas Liquids), while the remainder is gas.

NOK 45 billion paid in taxes

The operating profits were NOK 44.8 billion – about 7 % lower than in 2007. ExxonMobil paid NOK 45 billion in taxes in 2008. After tax profits for 2008 were NOK 13 billion – NOK 2 billion lower than in the previous year.

NOK 5.6 billion invested in 2008

The investments in 2008 were NOK 5.6 billion. Exploration and Production represented more than 90% of the investments. Over the last 15 years, the company has invested NOK 90 billion in Norway.
For ExxonMobil, 2008 was the best exploration year for a long time. Out of 25 discoveries made on the Norwegian shelf, our company has owner interest in about one third.

Planned maintenance work affected the capacity utilization at the refinery

In 2008, the general refinery margins were somewhat better than in 2007. The capacity utilization at the Slagen refinery was influenced by planned maintenance work on several units, therefore being somewhat lower than in 2007. About two thirds of the refinery production were sold in the international market for petroleum products.

The company’s total share of the domestic market was 20,4%

The total petroleum products demand in the domestic market in 2008 was 9.2 billion litres, a 4.3% decline from 2007. The company’s total Norwegian domestic market share increased marginally to 20.4%, according to figures of Statistics Norway. Total motor fuel sales for land transportation in Norway had a 0.3% decline in 2008 compared to the previous year. Sales of auto diesel increased by 3.6%, thereby further increasing its motor fuel market share to 62%. Esso’s sales showed directionally the same development, with an increase in diesel sales by 1% to a 63% share of total fuel sales.

To complete its offer to customers in all market segments, the company continued its establishment of unmanned Esso Express stations in 2008. Furthermore, the company built one new On the Run station, making the total number 46 at the end of 2008. During the year, the company took over the operation of 10 stations, to benefit from a more effective chain operation. By the end of 2008, the network of stations consisted of 311 dealer owned or company owned Esso stations, out of which 105 stations were run by Esso Norge AS through Tiger AS.

The company increased its market share within the areas of heating oil, asphalt, lubricants and specialties, while sales declined somewhat in these markets

Sales of oil in the industrial and heating markets, were reduced by 20% in 2008, primarily due to a transition to other energy sources. The company’s position in the heating products market was further strengthened. Oil for heating still plays an important role in the Norwegian energy picture, both regarding supply security and the environment. The import of coal power as an incremental power source, leads to three to four times higher CO2 emissions compared to light heating oils.

The total demand for marine fuels decreased by 5% in 2008, and Esso’s market share declined somewhat. Following a strong increase in 2007, the total demand for lubes and specialties had a 3% decline in 2008. Both the asphalt and lubes markets declined. The total sales volume of Esso and Mobil products within these areas showed, however, a better development than for the total market, and the company strengthened its market share within this segment.

Progas AS sold in 2008

Following the sale of its subsidiary company Progas AS on 1 June, 2008, Esso has withdrawn from the market of LPG (propane and butane) sale to end users. The company is, however, still a LPG supplier to the industrial market.

(1) ExxonMobil in Norway includes several companies – i.a. ExxonMobil Exploration and Production Norway AS, ExxonMobil Production Norway Inc., Mobil Oil AS, and Esso Norge AS. The figures given in this text are consolidated figures for the four mentioned companies.

Below you find pdf files with the annual reports (in Norwegian) of the three biggest ExxonMobil companies:

Årsberetning ExxonMobil Exploration Production Norway AS 2008
Årsberetning Esso Norge AS 2008
Årsberetning ExxonMobil Production Norway Inc. 2008