The government decides when production licences are

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Unformatted text preview: nd the other becoming part of the State's Direct Financial Interest (SDFI) in petroleum operations. The SDFI is an arrangement in which the state owns interests in a number of oil and gas fields, pipelines and onshore facilities. The government decides when production licences are awarded and the size varies from field to field. As one of several owners, the state pays its share of investments and costs, and receives a corresponding share of the revenue from the production licence. The Storting decided in the spring of 2001 that 21.5% of the SDFI's assets could be sold. 15% were sold to Statoil and 6.5% to other licensees. The sale of SDFI shares to Statoil was seen as an important element on the way to a successful listing and privatisation of Statoil. Statoil was listed in June of the same year. Petoro was established in May 2001 as a state-owned limited company to manage the SDFI on behalf of the state. The SDFI has a direct financial interest in 114 production licenses. The 10 larges...
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