The Statoil Book

The Statoil
Book
At Statoil, the way we deliver is as important

as what we deliver.
Dear colleague
We are on a journey together to transform Statoil into a
global energy company. We have a successful history of
innovation and growth, and a distinctive values-based
performance culture. Our vision of crossing energy frontiers
represents both past achievements and the challenges we
have to solve to continue developing our great company.
At Statoil, the way we deliver is as important as what we
deliver. Safe, secure and efficient operations are our top
priority. Together, we create value for our owners with
integrity.
We have a strong framework for safety improvements and a
clear security policy. The Compliance and Leadership model
describes how we plan, execute, evaluate and learn from any
task. This is the way we work in Statoil and your commitment
is needed to continue to strengthen our performance. By
using the model, you and your team will deliver with precision
and quality.
We face an increasingly competitive and complex industry
environment, growing expectations from a broad set of
stakeholders and high attention towards safety performance.
Our leadership profile is aimed at making Statoil even more fit
to meet these realities, and will serve as a catalyst to drive
performance and accelerate our journey.
Our management system contains the principles, policies and

requirements we need to work safely and effectively. As part
of the management system, this book describes the most
important policies and requirements for our entire group.
The Statoil book is the foundation of how we conduct our
business. It sets standards for our behavior, our delivery and
our leadership, and it is clear on what is required and expected
of each of us.
The Statoil Book is an important tool for you in your daily
work and for us as a group. I expect you to understand and
follow our principles and requirements. Statoil needs your
personal commitment and contribution every day to reach our
goals and to be an exceptional place to perform and develop.
Helge Lund
President and CEO
CopyrightStatoil 2013
The Statoil Book - version 3.1
Contents
Title:
Version:
Valid from:
Part I
The Statoil Book

3.1
5 July 2013
Validity area: Statoil group all locations

Classification: Open
Owner:
Function owner management system
The Statoil Book will be printed in updated versions
when deemed necessary. However, any changes will
be updated in the electronic version as and when
required, and this will always represent the most
recent edition.
The career model on page 21 has been inspired by
Charan, R, Drotter, S & Noel, J (2001). The
leadership pipeline.
Liability disclaimer
None of the provisions of the Statoil Book are
intended to be construed as creating any right(s)
enforceable by a third party and all third-party rights
implied by law are, to the extent permissible by law,
excluded.
Our values 12
Our
management
system
Introduction
Our responsibilities
People and
leadership
8
9
People partnership
Our leadership
16
17
Part II
Operating
model
Organisational
principles
Ambition to Action
Compliance and
leadership
Capital Value Process
Arenas
Governing
documentation
Process owners
Function owners
Monitoring
Part III
Corporate policies
Safety
Security
Sustainability
People
Communication
Risk management
Finance and control
Procurement
Ethics
Managing
information
24
27
34
36
38
39
40
42
43
Corporate
governance
Corporate
governance
48
Governing bodies 48
Authorities and
internal control
in Statoil
50
56
58
60
62
64
66
68
70
72
74
Appendices
Appendix A Organisation
Appendix B Decision authorities
Appendix C Control in subsidiaries
and joint ventures
Appendix D Committees
Appendix E Capital Value Process
Appendices are available electronically
Our
management
system
Introduction 8
Our responsibilities 9
Our management
system
We have a management system which defines

how we work and describes how we lead and
perform our activities.
Introduction
Our management system
1. Contribute to safe, reliable and

efficient operations and enable us
to comply with external and
internal requirements
2 Help us to incorporate our values,
our people and our leadership
principles in everything we do
Values
The Statoil Book
Our management system has three

main objectives
People and
leadership
Operating model
3. Support our business performance

through high-quality decision-
making, fast and precise
execution, and continuous
learning
Function requirements
Commitment to and compliance with

our management system are a
requirement.
Business area requirements
Corporate policies
Our management
system
Our management system is the set of principles, policies, processes and requirements which support our organisation in fulfilling the
tasks required to achieve our objectives.
The management system is documented in governing documentation, which includes the Statoil Book, common function
requirements as well as requirements specific to the business areas.
1. The Statoil Book covers the following topics
Our values: guiding our behaviour

People and leadership: describing what we expect from
our company, our people and our leaders
Operating model: describing our organisational principles,
the way we work, and the way we manage and improve
our performance
Corporate governance: describing governing bodies,
authorities and internal controls in our group
Corporate policies: regulating our actions and decisions in
important areas
2. Common function requirements
Describe function requirement for function and process
areas as well as work processes and technical requirements.
3. Business area requirements

Describe the organisation and operating model for the
business areas and other organisational units. Business area
requirements also include local governing documentation
related to the common function and process areas.
Our responsibilities
All our people are required to comply with relevant governing
documentation, in addition to adhering to country-specific
laws and regulatory requirements.
Every leader is responsible for ensuring that their people know
where to find the relevant requirements, understand how to
use the management system and comply with the requirements. Leaders are role models for how to use the management system. All our people are responsible for contributing
to governing documentation improvements.
Our
values
Our values
12
Our values
Our values embody the spirit and energy of Statoil.

Our values are essential if we are to succeed over
time in a competitive environment. They are at the
core of our management system.
Our values drive our performance and guide us in
how we do business, and in how we work together
and towards external stakeholders.
11
Courageous
Open
Be imaginative and ambitious, and stimulate new ideas
Be truthful and act with integrity
Use foresight, and identify opportunities and challenges
Be curious, work together and share experience
Challenge accepted truths and enter unfamiliar territory
Promote and value diversity
Make clear demands on each other and push for

constructive change
Communicate in a precise way, give and accept constructive

feedback
Understand and manage risk
Bring up ethical issues and challenges immediately
12
Our values
Hands-on
Caring
Deliver on promises
Cause zero harm to people and prevent accidents
Continuously develop sound expertise, demonstrate

commercial awareness and customer orientation
Reduce the negative impact of our activities and products on
Strive for simplification and clarity, and focus on
Act within the law and comfortably within our own ethics
Act decisively and be loyal to decisions
Demonstrate social responsibility and contribute to
value-adding activities
Show dedication and endurance, follow through and pay
attention to important details
the environment
policy
sustainable development
Respect the individual, help others to succeed and
contribute to a positive working environment
13
People and
leadership
People partnership
Our leadership
16
17
People and
leadership
It is our people who enable us to meet our challenges

and deliver on our promises.
We need your skills and personal commitment as
well as effective leadership to reach our goals.
We believe in involving our people and their
appropriate representatives in the development
of our group.
15
People partnership
We establish and grow a partnership between our group and the individual based on clear expectations and a mutual
commitment to the way we behave, deliver and develop.
What you should expect from our group and what the group expects from you
We:
Promote a stimulating work environment guided by our
values and a commitment to your personal and professional
development
Provide a good match between your professional interests
and goals and challenging and meaningful job opportunities
Build a high-performing environment, and give direct
feedback on your performance
Recognise and reward your performance based equally on
what you deliver and how you behave
Value diversity and provide equal opportunities
16
You:
Live our values in all aspects of your work
Recognise that change is vital to our business, commit to

agreed objectives, and strive to deliver beyond expectations
Take the initiative and look continuously for ways to improve
performance
Take responsibility for your own learning and development,
continuously build new skills and share your knowledge
Respect and motivate others, are a team player and create
effective working relationships
Are proactive in ensuring high-quality decision-making.
Once a decision has been made, you promote that decision
and focus your energy on its execution
People and
leadership
Our leadership
If you accept leadership responsibility in Statoil, you will be required to meet expectations which go beyond the people partnership.
These expectations are described in the leadership profile and in the leadership development principles.
Statoil leaders have impact and deliver sustainable results
Leadership profile
INTEGRITY
Be honest and build trust with others
Be direct and raise issues early
Advance our company and values in all you do, and place
organisational success ahead of personal gain
PERSONAL HUMILITY
Know how others perceive you and how you can best
influence others
Continuously work on developing yourself
Be humble, ask for feedback and help when needed
WILLPOWER
Have inner drive to enhance the performance of self,
others and the business
Have stamina, create optimism and energy, also in
difficult times
Be ambitious on behalf of the company, act decisively,
drive change and be passionate about winning
EXTERNAL ORIENTATION
Understand external forces, create business opportunities, manage risks and adapt to reality
Collaborate with stakeholders to strengthen our business
and create innovative solutions
Have a commercial mind-set, drive competitiveness and
be cost conscious
17
EXECUTION RIGOUR
Manage the critical details, follow through and deliver on
promises
Collaborate across boundaries, develop and empower
your team and people
Have a strong focus on safety, capital efficiency,
operating excellence, and compliance
ACCOUNTABILITY
Set clear direction, clarify responsibilities and accept your
accountability
Take full responsibility for whatever happens within your
area, and never blame others or bad luck
Celebrate and reward the right behaviour and outstanding delivery, and tackle poor performance
18
Leadership development principles

Our leaders are talent scouts, responsible for building our future
leaders to meet our business goals
Our leaders:
drive their own development
demand stretch assignments and embrace mobility
develop both domain expertise and general leadership
capabilities
build strong and diverse teams
grow the next generation of professionals and leaders
People and
leadership
People@Statoil
People@Statoil is our common process for people development, deployment,
performance and reward, and is an integrated part of our performance management.
People@Statoil process
1
4
Ambition to Action for your team is reviewed

Pre-review meetings are held to ensure
calibration of performance, potential and
development
Progress is reviewed on the basis of

performance goals and development plans
Required actions to reach goals and
fulfill development plans are discussed
Additions, revisions or updates to goals
and development plans are agreed
People@
Statoil
dialogue
Preparation
August
October
Follow-up
dialogue
My Performance Goals for the

coming period are set
Short- and long-term development
plans are established
January
March
April
June
2
3
Performance appraisal of last years

delivery and behaviour is carried out
November
December
Even Stronger Values survey is completed
Capability and
deployment
review
Organisational capabilities and gaps are

identified on the basis of the business
strategy
Development actions for individuals,
teams and the organisation are agreed
Deployment actions are discussed and
succession candidates identified
19
Our common career model

We have a common career model for leaders and professionals which guides us in developing the expertise required to meet our
business needs. It provides a clear direction for your career planning, and highlights the broad range of career opportunities which we
as a group can offer.
The career model is based on stages in which progression depends on your performance and potential. It supports the creation of
development plans and deployment opportunities.
20
People and
leadership
This model enables you to develop in both the professional and

leadership pipelines, and movement between the two is both
possible and encouraged.
The professional pipeline

The leadership pipeline
21
Operating
model
Organisational principles
Ambition to Action
Compliance and
Leadership
Capital Value Process
24
27
34
36
Arenas
Governing documentation
Process owners
Function owners
Monitoring
38
39
40
42
43
Operating
model
The operating model is about how we manage our

performance. It guides us to set the right priorities
based on our values, and drives our performance
through safe execution with precision, quality and
speed.
23
Organisational principles
How we are organised affects how we deliver results. Our
organisational principles define how we structure and manage
our organisation.
Principle 1:
Value and performance are created in our combined
asset-based and function-based organisation
Our organisational principles define a simple organisational

design which has the flexibility to meet demands of a
changing business environment.
Our organisation has two main types of entities; asset-based

and function-based.
Principles
Asset-based entities have a mandate to define, develop
and operate assets in the value chain to ensure optimum

return on investments
1 Value and performance are created in our combined
Function-based entities have a mandate to deliver advice,
2 The organisational entities have clear responsibilities

and two distinctly defined roles; the line role and
the support role
We have four different types of function-based entities, with

a global mandate.
asset-based and function-based organisation
3 Responsibilities and authorities are established

through the process of delegation to the line role, and
through the assignment of tasks to support roles in
delivery entities
4 A single point of accountability applies
5 The line role has primacy, and acts in accordance with
our management system
24
services, products, projects and governing documentation to

drive synergies and functional excellence across the group
Corporate staff entities support the CEO and the corporate
executive committee (CEC) in the development of Statoil,

key business decisions and in driving a values-based
performance culture. They develop and monitor corporate
standards, and drive improvement initiatives
Delivery entities provide professional cost-effective
services, products, projects and expertise across the group
Operating
model
Process owners develop and improve the Statoil global work
processes and drive simplification and improvement

initiatives across the group. They monitor compliance of
Statoils global requirements and support business areas in
deployment of key positions
Roles and responsibilities of organisational entities are

described in governing documentation.
Arenas perform quality control and support quality decision-
Principle 3:
Responsibilities and authorities are established through
the process of delegation to the line role, and through the
assignment of tasks to support roles in delivery entities
Principle 2:
The organisational entities have clear responsibilities and two
distinctly defined roles; the line role and the support role
Delegation is the establishment of responsibility through the

organisational line role. The leader with delegated responsibility is accountable for the deliveries, agreed contributions,
resource ownership and the People@Statoil process.
making
The line role is responsible for people, results and performance.

A solid line in organisational charts represents the organisational line dimension.
The support role is responsible for deliveries of services,
products and projects, and providing advice and expertise to
other entities.
CEO
Assignment of tasks is the establishment of responsibility

across organisational entities for specific deliveries. Assignments of tasks to support roles in the delivery entities are
regulated through the use of service level agreements or task
and project assignments.
CEO
Delegating
responsibilities
to line role
CEO
Line role
Asset-based
entity
Delivery
entity
Asset-based
entity
Delivery
entity
Asset-based
entity
Assigning
responsibilities
for tasks to
support role
Delivery
entity
Support role
25
Local delivery entities work in an integrated way with the local

asset-based entity. The local delivery entity is responsible for
delivering functional excellence. The delivery entity has resource
ownership of its own people. To strengthen local commitment a
coordinated Ambition to Action and People@Statoil process may
be agreed upon with the asset based entity.
Principle 4:
A single point of accountability applies
A single point of accountability means that one individual is
accountable for actions and measurable deliveries.
A single point of accountability applies also when several
organisational entities contribute in deliveries. Contributors
are accountable according to the service level agreements,
task and project assignments, and towards own line.
Delivery
entity 1
Asset-based
entity
Delivery
entity 2
Single point of
accountability
Procurement
26
Development
entity
Drilling
The individuals responsibility for results and performance is

independent of whether they use resources from their own entity
or from other entities, or whether they use external resources.
Assignment relationships are normally not shown in organisational charts. If there is a need to illustrate a strong interdependency with another entity a dotted line may be applied. In
such a formalised relationship collaboration normally takes
place through leadership team participation.
Principle 5:
The line role has primacy and acts in accordance with our
management system
If conflicts of interest arise between the line role and a
support role, the line role has primacy. When exerting
primacy, the line role acts in accordance with our management system, and the defined roles in the organisation.
Conflict of interests are to be resolved at the lowest relevant
level. If resolution cannot be reached, the support role can
take the conflict to a higher level within own line.
In the case where there is a conflict of interest related to an
assignment between an asset-based entity and a delivery
entity, the asset-based entity has primacy and the authority
of the final decision.
Operating
model
Ambition to Action
Ambition to Action is our integrated performance process,
and has three purposes:
Translate ambitions and strategies into
Strategic objectives - where are we going?

Key performance indicators - how do we measure progress?
Actions - how do we get there?
Team or individual goals - what is our or my contribution?
Create a dynamic and flexible execution framework
Activate values and people and leadership principles
Our business environment is demanding, dynamic and unpredictable.
We must continuously evaluate risk and respond quickly when the
unexpected occurs and when opportunities or threats arise.
This is best achieved through a dynamic and event-driven
performance management process. Ambition to Action balances
alignment around strategic direction and common business
processes with empowerment and local business responsibility.
To support this, the following is an integrated part of the process:
dynamic resource allocation
forward-looking and action-oriented follow-up
holistic performance evaluation
learning through sharing and improving
Ambition to Action covers five perspectives:

people and organisation
health, safety and the environment
operation
market
finance
These perspectives are dependent on each other and have a

cause-and-effect relationship. Together, they build on one
another and require us to address what creates and drives
good performance in the short and long term while maintaining focus on all our stakeholders.
Ambition to Action separates target-setting, forecasting and
resource allocation from each other in order to improve the
quality of these activities.
Ambition to Action is established and followed up in our
management information system MIS, and through individual
goals set in People@Statoil.
27
The
The Ambition
Ambition to
to Action
Action process
process
Strategy translation and target setting Planning
ambitious
Strategic
objectives
expected outcome
People@Statoil
holistic assessment
Actions and
forecasts
KPI selection
and targets
My Performance
Goals (MPG)
Performance
evaluation
and rewards
Execution - dynamic resource allocation

Follow-up forward looking and
action oriented
Learning - sharing and improving
Ambition to Action key principles

Performance is about performing better than those we compare ourselves with
Do the right thing in the actual situation, guided by the Statoil Book, your Ambition to Action, decision criteria and
authorities, and sound business judgement
Within this execution framework, resources are made available or allocated case-by-case
Business follow-up is forward-looking and action-oriented
Performance evaluation involves a holistic assessment of delivery and behaviour
28
Operating
model
Strategy translation and target-setting
Strategy development is a risk based and event-driven
process, defining ambitions and direction. Ambition to Action
translates strategies into more specific strategic objectives
with a medium-term time horizon across all five perspectives.
Short and longer term KPI targets reflect the direction and
ambition level of the strategic objectives. KPI targets have
business driven time horizons which may vary depending on
urgency, lead time and complexity of what we aim to achieve.
A good strategic objective provides clear guidance and

direction, engages and motivates.
Business challenges may differ significantly across the

organisation, and a top-down cascading of strategic objectives, KPIs and actions should normally be avoided. Ambition
to Action requires strong line ownership to be a meaningful
and value-adding process enabling teams to manage their
own business. When establishing Ambition to Action for own
entity it is therefore recommended to translate relevant
Ambitions to Actions to reflect own business realities. In this
way a strong local ownership and alignment with overall
corporate ambition and direction is maintained.
High performance is about performing better than those we

compare ourselves with through continuously improving.
We set objectives and targets inspired by expectations from
customers, shareholders, partners and other stakeholders, and
by the performance of competitors and other relevant
benchmarks, internal or external.
We measure delivery against strategic objectives by using key
performance indicators (KPIs). A good KPI:

measures progress against strategic objectives

is relative, comparing our own performance to others, or
connects the use of resources to deliveries (e.g. unit cost)
primarily addresses areas where improvement is required
Strategic objectives, KPIs and KPI targets are updated when

necessary. Major changes are to be approved by the relevant
leader. The entity initiating an update is responsible for
informing other affected entities.
KPIs may be challenging to establish in some areas. Clear

strategic objectives and actions can secure focus and
direction if specific KPIs cannot be developed.
29
Planning
My Performance Goals
Planning starts with understanding risk and actions needed to

manage risk and includes:
People@Statoil is an integrated part of the Ambition to Action

process.
actions required to move towards strategic objectives and
My Performance Goals (MPG) are set in two dimensions, delivery

and behaviour, reflecting that delivery and behaviour are equally
important and weighted.
deliver on KPI targets, including action planning (what, how,

who, when)
unbiased forecasts of these actions expected effect on
relevant KPIs, providing an early warning of possible gaps in
reaching targets and for other financial/operational trends
A target is what we want to happen; a forecast is what we expect
to happen. The purpose of a forecast is to support decisionmaking. Forecasts must therefore be unbiased and reflect the
expected outcome.
Actions and forecasts are dynamic and updated as required.
Updates are event-driven rather than calendar-driven. The
forecasting horizon varies with the type of business and event. The
need for new or revised actions is continuously reviewed as part of
the business follow-up.
30
Delivery goals are defined or inspired by the Ambition to Action

for your entity and other relevant entities.
If MPG delivery goals for all team members are defined directly
by Ambition to Action, individual responsibility for specific
actions or KPI targets is set to clarify each team members
accountability and support performance evaluation. Using
Ambition to Action in this way also makes it easier to manage
changes, as they are maintained in one place only.
Behavioural goals help us to live our values, and to address the
behaviour required and expected in order to achieve our delivery
goals. Behavioural goals are also set on the basis of feedback
from the People@Statoil dialogue, the Even Stronger Values
(ESV) survey, Global People Survey (GPS) results, and day-to-day
observations from leaders and colleagues.
Operating
model
Execution dynamic resource allocation
Execution is based on a framework which is dynamic and
flexible but has clear boundaries.
The execution framework
Within this framework, resources are made available for

operations through various mechanisms or are allocated at
project decision points. Annual pre-allocation of resources
should be avoided.
The Statoil Book

Our management system
Ambition
to Action
Empowerment and
room to act and perform
Sound judgement
Dynamic but with clear boundaries
The purpose of the execution framework is to create a

dynamic, efficient and self-regulating resource allocation
which optimises value creation within our human and financial
resource capacities.
Decision
authorities and
criteria
Cost targets are established if and when necessary. These are

primarily set using relative KPIs (unit cost or league tables).
Absolute cost targets may be set if a significant change in
activity and cost levels is required, but must be set at the
overall rather than the detailed level to secure the necessary
flexibility.
Even if no cost targets are set, both actual and forecasted
cost trends are monitored and corrective measures taken as
required. All entities should continuously challenge their own
efficiency, level of activity and resource use.
Agile and iterative project methodologies are recommended for
business support, research and development, and technology
projects.
31
Follow-up; forward-looking and action-oriented
Holistic performance evaluation
Business follow-up is a monitoring activity conducted through

Ambition to Action reviews. Follow-up is forward-looking and
action-oriented, and focuses on gaps between forecasts and
targets, and on the development of underlying risk drivers.
Performance evaluation is based on your individual goals. It is

a holistic evaluation, combining measurement and assessment, and addresses both delivery and behaviour. Since KPIs
are only indicators, sound judgement and hindsight information should be applied before drawing final conclusions by
asking the following questions:
If positive gaps, which risks could jeopardise this forecast?

If negative gaps, which actions must be taken to get back on
track?
Corrective actions are described in the MIS system.
Did KPI deliveries contribute to reaching the strategic
objectives?
How ambitious were the targets?

Should changes in assumptions be taken into account?
Were agreed or necessary actions taken?
Are the results sustainable?
The outcome of the delivery and behavioural evaluation form

the basis for individual salary and variable pay reviews, and
provide input for the following years development plan. The
evaluation aims to give a clear picture of both performance
and potential.
32
Operating
model
Learning sharing and improving
Business follow-up and performance evaluation are key events
for learning in order to improve our performance.
To promote sharing of knowledge and best practice across the
organisation, information on all Ambition to Actions should be
made open and available unless it is determined to be
confidential information.
The use of benchmarking KPIs in Ambition to Action is recommended in order to learn from high-performing entities inside
and outside the organisation.
33
Compliance and Leadership

The Compliance and Leadership model describes how we
plan, execute, evaluate and learn from any task; it is the way
we work. The five steps in the model form a systematic action
pattern denoted the A-standard.
three main objectives of the management system (see page 8).

Compliance with the model means executing tasks in
accordance with the A-standard, using clear communication
to achieve precision and quality in each step.
Using the model in how we solve our task will increase our
precision and quality. This will then enable us to achieve the
Leadership means active demonstration of skills in use of the

model, of our values, people partnership, and leadership
principles by the task leader.
Compliance and Leadership Model

A-standard:
How we execute
tasks
Understand
task and risk
Identify and
understand
requirements
Manage
risk
Execute
task
Desired
result
Task
Leadership
34
Evaluate
result
Extract
learning
Communicate how we work when we execute tasks

Be a role model in your interaction with others
Train, observe, follow up and guide your group when using the model
to ensure effective collaboration
Operating
model
Leaders shall enable co-workers to execute tasks independently by using the model and through effective interaction.
This is done by fostering a clear understanding of the model
through training, observing and guiding co-workers.
Good communication
Effective interaction, and sound use of the teams joint
competences, are prerequisites for gaining a shared and

precise understanding in each activity step. To achieve this, all
team members must demonstrate the communication skills
that support this. These include being able to:
Share own understanding with others
Explore and clarify the views and perceptions of others
Summarise the groups understanding, and where the group
currently is in the process at all times

Stepwise description of the model
Step 1: Understand task and risk: Ensure a shared understanding of the delivery, the sub-tasks that must be performed,
the purpose of the task, necessary relationships (context) and the risks associated with executing the task. Identify
knowledge and experience that may contribute to the understanding of the task, its risks and effective execution.
Step 2: Identify and understand requirements: Identify and develop a shared understanding of relevant requirements for
this task. Most tasks are subject to specific requirements in the management system. For some tasks defined expectations
are added.
Step 3: Manage risk: Determine how identified risks not addressed by the management system shall be managed.
Step 4: Execute task: Assess and manage changes in risks and assumptions continually while executing the task.
Step 5: Evaluate result. Extract learning: Assess progress, gaps, experience, and learning. Propose improvements and
share best practice.
35
The Capital Value Process

The Capital Value Process (CVP) is our decision process for
investment projects, including cessation projects. CVP is a
structured and comprehensive approach to project identification, planning and execution, where an investment project is
developed from a business opportunity into the most

profitable operation for the total value chain.
Business development opportunities or acquisitions enter into
the relevant decision gate as the project matures.
Capital Value Process (CVP)

DG0
Business
identification
Acquisitions/farm-ins/mergers
Screening
business
opportunities
DGA
36
Bid
preparations
DGB
Concession/
Negotiations
DGC
DG1
Business
planning
DG2
Concept
planning
DG3
DG4
Definition
Execution
Operations
Operating
model
In each project phase, work is performed according to

corporate requirements, and the following CVP arenas are
mandatory:
Stakeholder Start-up meeting
Steering Committee
Arena review
The asset owner is responsible for securing a good and

consistent investment decision basis in the CVP. Asset owner
involvement and clearly defined roles and responsibilities are
essential for project success.
The following decision gates are defined at different stages between project phases in the maturation of a project

DGA: approval to develop a business opportunity

DGB: approval to negotiate
DGC: accept a negotiated agreement/decision to assess a new exploration or business opportunity
DG0: approval to start appraisal/business planning
DG1: approval to start concept planning
DG2: project pre-sanction
DG3: project sanction
DG4: start operation
37
Arenas
The purpose of the arenas is to provide quality and consistency
across the organisation before important decisions are made.
Three arenas support quality in decision-making within their
particular specialist skills:
information technology arena
technology arena
investment arena
The arenas ensure that decision-makers understand expectations for the end result, that risk exposure is realistic and that
decision-making meets our requirements.
The responsibilities of the arenas are outlined below:
The information technology arena ensures that the portfolio
of major IT initiatives support the companys strategy and
creates ownership across the group. The arena must consider
the consequences and risks of the company by providing their
comments to the IT portfolio and the financial targets set.
38
The technology arena endorses the technology development

and implementation portfolio on a continuous basis, including
funding, for line management approval. The technology arena
ensures that the portfolio is clear, founded in the corporate
technology strategy, supported by management and that
ownership exists across the group.
The investment arena performs an independent technical and
commercial review before passing decision gates on exploration
projects, on acquisitions and divestments involving a major
commitment, and where there is significant risk or exposure. It
provides the overall framework for the CVP and facilitates its
implementation.
Investment arena reviews are mandatory for investment
decisions, for acquisitions and divestments requiring approval
by the chief executive, and for exploration decisions requiring
approval by the exploration executive. A copy of the conclusion
of the investment arena review shall be included in the final
decision document.
The line organisation must take the investment arenas
recommendation into consideration. It is, however, line management that makes the final decision and which is ultimately
accountable.
Operating
model
Governing documentation
Our governing documentation ensures standardisation and
the deployment of best practice across the group.
Function requirements for the function and process areas
describe what we want to achieve. Process models, work flow
diagrams and requirements describe how we execute
activities.
The owners of governing documentation handle proposals for
improvements and, where relevant, provide recommendations
on dispensations.
Owners of governing documentation are appointed in
subsidiaries which have their own management system.
It is the corporate parents obligation acting through the line
to ensure that its subsidiaries implement Statoils global
governing documentation. It is the subsidiarys obligation to
assess and implement such governance, to the extent
possible based on legal advice.
Process owners
Function owners
Exploration (EXPL)
Management system (MS)
Petroleum technology and IOR (PETEC)
Safety (SF)
Drilling and well (D&W)
Information technology (IT)
Project development (PD)
Legal (LEG)
Operation and maintenance (OM)
People and organisation (PO)
Marketing and supply (M&S)
Finance and control (F&C)
Supply chain management (SCM)
Sustainability (SU)
Technology development and implementation (TDI)*
Communication (COM)
Business development (BD)*
Risk management (RM)**

Ethics and compliance (EC)**
Facility Management (FM)**
* Owners of TDI and BD governing documentation are not formally defined

as process owners, but have the same responsibility for governing
documentation, simplification, improvement and monitoring as described
for the process owner.
**These areas are not defined as corporate functions, but holds the role as
function owners with ownership to corresponding functional requirements.
39
Process owners
Process owners have been appointed for the process areas with
a global reach affecting large numbers of people across the
organisation, to support business needs and standardisation
based on best practice.
Working across the organisation, process owners ensure that we
achieve high operational standards and functional excellence.
Process owners capture best practice and lessons learned and
incorporate this into our global work processes.
Process owners work across the organisation

Process owners
Operation and
maintenance
Drilling and well
Exploration
Petroleum
technology and IOR
40
Business Business Business Business

area
area
area
area
Operating
model
The role and responsibilities of the process owners

Develop and improve Statoil
global work processes
Drive simplification and
improvement initiatives
across the group
Monitor compliance towards
Statoils global requirements
Establish and maintain requirements based on criticality

Establish requirements to IT tools and information management
Main
responsibilities
Use benchmarking to drive business performance

Propose improvement initiatives to business areas
Facilitate continuous learning
Establish risk assessment for own process area
Propose monitoring activities based on criticality
Supporting
roles
Conduct verifications on request from business areas

Support business areas in
deployment of defined positions
Recommend deployment within process area based on scope agreed with business areas
Advice on competence and capacity gaps within process area
The process owners work with local process managers in the

business areas and subsidiaries to ensure alignment with
business needs and local ownership of our global governing
documentation and the necessary tools.
Local process managers represent the link between the user

organisation and the process owner function. They perform
tasks in own entity based on process owner tasks. The process
owner may assign responsibility for certain tasks to a local
process manager.
41
Function owners
Role and responsibilities of the local process managers:

represent the link between the user organisation and
process owner/owner of governing documentation
propose local requirements when appropriate
support implementation of governing documentation
ensure quality in improvement proposals
handle dispensations to local requirements
capture learning and ensure experience transfer
Role and responsibilities of the line organisation within the
process owner dimension:
i mplements and use the governing documentation and IT

tools provided for them
proposes improvements to governing documentation
applies for dispensations and decide on implementation
and follow-up
ensures that people are qualified and trained in accordance with the expertise requirements set for the roles in
which they act
people development and deployment
establishes monitoring plan
42
Corporate functions have the responsibility for staff and

support function areas. Head of corporate functions, or an
appointed function owner within the corporate function, are
responsible for defining corporate policies and requirements,
and for driving improvement across the company.
Corporate functions will govern by publishing high-level
policies and requirements, primarily through FR documents.
Detailed work processes and requirements will only be
published in the management system when considered
necessary based on a risk and cost evaluation.
Staff managers in the business areas represent the function
areas in the line to ensure local ownership, and promote
business needs. Staff managers for the function in the business
area act as local function managers and have equivalent
responsibility as local process managers.
Local function managers are responsible for establishing and
maintaining networks as needed.
Operating
model
Monitoring
Monitoring is conducted to manage risk, and drive performance
and learning. It ensures quality and effectiveness in how we run
our business, as well as the quality of the products and services
we provide. It assures compliance with the management system
and provides a basis for improvement.
Monitoring is performed by internal or external parties. The
scope and frequency of internal monitoring depends on an
assessment of risks performed by line managers, function and

process owners. Business areas in cooperation with corporate
staff units, process owners and corporate audit, ensure that the
monitoring activities are coordinated.
Internal monitoring consists of three main categories: followup, verification, and internal audit.
Monitoring activities
Category
Purpose
Characteristic
Plan approved by
Follow-up
Assure performance within own

area of responsibility
Flexible and informal

Tailored according to context
Task owner
Verification
Assure compliance with

governing documentation
Internal audit
Assure adequate management

and control of the business
Line
Independent and objective
assessment
Structured and formalised
process
CEO and BoD audit committee
43
Follow-up
Function and process owners, line management and corporate
audit have certain responsibilities related to monitoring
activities. These are:
Function and process owners:
develop requirements and key controls
perform risk assessments for own area
recommend verifications
perform follow-up
perform verifications on request by the business areas
Line management:
performs risk assessments
maintains monitoring plan
performs follow-up
performs verification
Corporate audit:
prepares internal audit plan
performs internal audits
44
Follow-up is performed within own area of responsibility to

ensure that business strategies, plans or tasks are executed and
implemented as decided. Evaluation of risks and performance
related to the execution or implementation determines the
approach, extent and documentation of the follow-up activity.
The result is used to decide necessary actions.
Examples of follow-up activities are
Collect and review progress reports or KPIs
Conduct performance review meetings
Perform spot checks to ensure compliance with governing
documentation
Perform reviews of high-risk items and areas
Perform arena reviews
Control activities performed by controllers
Process owners review of tasks assigned to local process
manager
Evaluate information and trends which may indicate system
deficiencies
Review applicable external information
Operating
model
Verification
Internal audit
Verification is the confirmation, through the provision of

objective evidence, that the requirements for a specific
intended use or application have been fulfilled.
Internal audit is an independent, objective assurance and

consulting activity performed in accordance with international
standards to evaluate and improve the effectiveness of our
performance, management system and governance in accordance with the formal mandate from the board of directors.
Examples of verification activities are

Compliance verification to ensure compliance with
governing documentation
Verification of products and processes to ensure compliance
with relevant standards and specifications
Joint venture audits
Verification of suppliers
Examples of internal audits are

Internal audit of entities or projects to assure that they are
organised and managed appropriately and in compliance with
the management system
Internal audit of process areas to asses if processes
adequately address risks and business needs, and is implemented, understood and complied with in relevant business
areas
Internal audit of activities or functions to assess if they are
organised, led and managed in an adequate manner
45
Corporate
governance
Corporate governance 48
Governing bodies
48
Authorities and internal
control in Statoil
50
Corporate
governance
Good corporate governance is a prerequisite for a

sound and sustainable company, and is built on
openness and equal treatment of all shareholders.
Our governing structures and controls help ensure
that we run our business in a justifiable and profitable
manner to the benefit of our people, shareholders,
partners, customers and society.
47
Corporate governance
Governing bodies
We are a public limited company with a governance structure

based on Norwegian law. Our main share listing is on the Oslo
Stock Exchange, and our share is also listed on the New York
Stock Exchange.
The board of directors
According to our articles of association, our object is to engage

in exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products, and other
forms of energy, as well as other business.
We are responsible for marketing and selling the Norwegian
governments petroleum, derived from the states direct financial
interest (SDFI) or paid as royalty in kind.
The board of directors of Statoil ASA is responsible for the

overall management of our group, and for supervising its
activities in general as further defined in the boards rules of
procedure. The board handles matters of major importance or
of an extraordinary nature. However, it may require that any
matter be referred to it. The board appoints our president and
chief executive officer (CEO), and establishes the working
instructions, powers of attorney, and terms and conditions of
employment for the chief executive.
The board has three sub-committees. The audit committees
role is to support the board in exercising its management and
monitoring responsibilities, particularly in respect of accounting
and financial reporting, and to ensure that our group has an
independent and effective external and internal audit system.
The safety, sustainability and ethics committees role is to assist
the board in its supervision of the companys safety, sustainability and ethics policies, systems and principles with the exception of aspects related to financial matters.
The role of the compensation and leadership development
committee is to assist the board of directors in its work relating
to the terms of employment for Statoils CEO and the main
principles and strategy for the remuneration and leadership
development of senior executives in Statoil.
48
Corporate
governance
The general meeting
The corporate assembly
The general meetings tasks include approving our accounts and

the allocation of net income, electing the members of our
corporate assembly, and electing the members of the election
committee.
The corporate assembly has a duty to supervise the board and

chief executive in their management of Statoil ASA. It takes
decisions based on proposals from the board on matters related
to substantial investments, measured against the total resources
of our group, and in matters concerning the rationalisation
and restructuring of operations which would result in a major
change in the workforce. The corporate assembly is responsible
for electing the board.
Our external auditor is independent of us and elected by the

general meeting. The same firm of auditors should, as a general
rule, be appointed for all our subsidiaries. If an auditor is
appointed for joint ventures we operate, our external auditor
must be used. Any deviation from this rule must be approved by
the chief financial officer (CFO).
Governing bodies
General meeting
Nomination
committee
External auditor
Corporate assembly
Board of directors
Internal auditor
Audit
committee
Safety,
sustainability
and ethics
committee
Compensation
and leadership
development
committee
President and CEO

49
Authorities and internal control in Statoil

The chief executive, the corporate executive
committee and the role of the CFO
committees are set up at the business area level with

individual mandates.
The chief executive reports to the board of Statoil ASA, and

has overall responsibility for our group as described in the
boards rules of procedure. The chief executive is responsible for
developing our business strategy and presenting it to the board
for decision, for the development and execution of the business
strategy, and for strengthening a performance-driven, valuesbased culture. As a general rule, issues should first be put to the
chief executive before they are presented to the board.
The chief financial officer (CFO) is the corporate controller

and ensures critical follow-up of all business activities in our
group. The CFO is responsible for:
Providing reliable, relevant and sufficient financial information and control related to our business activities, and for
assuring that information is based on corporate accounting
principles
The chief executive selects the members of the corporate

executive committee (CEC). Members of the CEC have a
collective duty to safeguard and promote our corporate
interests and to provide the chief executive with the best
possible basis for setting directions, making decisions,
ensuring execution and following up business activities. All
CEC members take an active part in the deliberations of the
CEC with the aim of promoting the collective interests of our
group. The CEC will continuously develop our management
system based on the requirements of corporate governance,
risk management and the control system, and implement the
system across our organisation.
The CEC constitutes the corporate committees for safety,
sustainability, audit and ethics. Corresponding
50
Defining and following up corporate requirements for the
Ambition to Action process
Chairing the corporate risk committee which handles
corporate risk management issues
Defining our accounting and reporting principles and
chairing the corporate disclosure committee
Approving the SOX 404 verification programme together
with the chief executive
Together with the chief executive, reporting to the US
Securities and Exchange Commission on the quality of

internal control over financial reporting in accordance with
sections 404 and 302 of the Sarbanes Oxley Act (SOX)
Corporate
governance
Controller and accounting manager

The controller function ensures critical follow-up of all commercial activity at every level in the business areas and business
units.
The controllers main responsibilities are to:
Challenge and support Ambition to Action and business
decisions in the line
Establish and maintain the Financial Model for the line
within the Statoil framework
Ensure quality in forecasting and financial reporting

Ensure commercial quality control and independent
assessment of business decisions
Follow up improvement initiatives
Controllers report professionally to the corporate performance

management and risk entity, with a right and duty to inform on
significant professional issues or matters of principle.
The corporate accounting entity is responsible for the quality of

accounting. Business area accounting managers are responsible
for the quality of accounting in their respective entities, which
includes ensuring consistent application of accounting principles and contributing to group accounting products.
Accounting managers report professionally to the corporate
accounting entity, with a right and duty to inform on significant
professional issues or matters of principle.
Control bodies
The corporate audit function is the independent control body
responsible for monitoring our business to ensure that it is
subject to adequate management and control at all times. The
head of this function has a formal mandate and reports to the
chief executive and the board.
The responsibilities of the chief compliance officer in the legal
entity include establishing our ethics policy and requirements,
and the operation of our ethics helpline. This person ensures
that compliance activities to counteract corruption are well
organised and conducted in a satisfactory manner. The chief
compliance officer shall also report on the implementation
and effectiveness of the ethics policy and the Anti-corruption
compliance program to the chief executive, the board of
directors and the boards safety, sustainability and
51
ethics committees. Extraordinary cases related to corruption

and any financial matters shall be immediately reported to the
boards audit committee. The safety, sustainability and ethics
committees shall immediately receive reports about extraordinary matters related to ethics.
The business integrity function in the legal entity is responsible
for carrying out integrity due diligence.
Decision-making authorities
The board authorises the chief executive to act in accordance
with the boards rules of procedure and with authorities issued
in relation to individual decisions.
The chief executive may delegate authorisations to other
members of the CEC. They then delegate and describe relevant
decision-making mandates in their own organisations.
The chief executive determines the authority for decision-making and responsibility for results on the basis of the organisational mandate, other relevant authorities and the management
system. All issues of major importance and issues outside a
business area or corporate entitys normal field of operation
must be presented to the chief executive for approval.
52
The CFO is authorised by the chief executive to raise loans

within the overall loan framework approved by the board.
Line managers responsible for results and performance are also
delegated a certain level of authority. Financial and people
authorities are handled by the task mananger role and the
resource manager role respectively.
Delegation of financial authorisations and responsibilities is
based on the way task responsibility is handled. Each task
manager assesses which responsibilities and reporting tasks can
be delegated. They can assign responsibility for executing tasks
outside their own line.
The delegation of authorities and responsibility for people is
based on resource responsibility, which follows the line
organisation. The resource manager is responsible for selecting,
developing and rewarding their people.
If a task manager has extensive responsibility for an individual
over time, the task and resource managers may agree that the
task manager assume responsibility for that person for a
temporary period.
Corporate
governance
Governance of subsidiaries
The chief procurement officer (CPO) has the authority to make
commitments to individual suppliers. The CPO may assign this
authority to the manager of a procurement entitiy. The
principle of segregation of duties between line and procurement responsibility applies to all our procurement.
Control and management of all organisational entities is based

on the same governance principles, whether the entity is
organisationally a part of our parent company or an independent legal entity in the form of a wholly-owned subsidiary
(wholly-owned limited liability company).
The board grants power of procuration on behalf of Statoil ASA.
In the case of partly-owned subsidiaries, the same principle

applies concerning control and management of the business.
Our representatives on the boards of such companies must
coordinate their points of view and vote in accordance with
decisions made in the line.
The management of the individual business entities and staff

entity is duty-bound to ensure compliance with relevant
legislation and regulations. It is required to seek assistance and
advice from the legal entity (and/or external guidance by
agreement with the legal entity) before entering into major
agreements or commitments, or when this is otherwise
necessary or required.
53
Corporate
policies
Safety 56
Risk management
66
Security 58
Finance and control
68
Sustainability 60
Procurement 70
People 62
Ethics 72
Communication 64
Managing information
74
Corporate
policies
We have ten corporate policies which describe

how we work. They guide our behaviour, actions
and decisions.
These policies are common to the group and to all
our people.
55
Safety
Our approach
We are committed to
We will ensure safe operations which protect people, the

environment, communities and material assets. We believe that
accidents can be prevented.
Integrating safety in the way we do business

Improving safety performance in all our activities
Demonstrating the importance of safety through hands-on
leadership and behavior
Openness on all safety issues and active engagement with
stakeholders
56
Corporate
policies
How we work
We take responsibility for the safety and security of ourselves
and others
We run safety improvement processes based on surveys and

risk assessments, and we involve our people in this work
We work systematically to understand and manage risk
We build robust installations/plants and maintain them to

prevent accidents
We provide our people with the necessary resources,

equipment and training to deliver in accordance with their
designated responsibilities
We cooperate with our contractors and suppliers on the basis
of mutual respect
We stop unsafe acts and operations
If accidents occur, our emergency response organisation will

do its utmost to reduce injury and loss. Saving lives is our
highest priority
We transform lessons learned into improved safety measures
through continuous learning
We aim for a safe and attractive working environment

characterised by respect, trust and cooperation
We monitor risk related to the working environment, and
we monitor the occupational health of our people
We establish work processes as well as goals and
performance indicators to control, measure and improve
these processes
57
Security
Our approach
We are committed to
Security is an obligation to our personnel, our owners and the

societies in which we are allowed to operate. Our business
security culture is preventative and proactive in nature to
manage risk.
Protecting our personnel, assets, interests and customers

from the consequences of malicious activity with reasonable
and realistic measures
Understanding the increasingly complex security threat
picture facing our business activities
Utilising industry best practices and international standards
in the design and implementation of security measures
appropriate to the security challenges facing the business
Ensuring that we are correctly informed of the identity,
competence, and professional background of our employees
and temporary staff
58
Corporate
policies
How we work
Security measures are a line responsibility, as for other
operational issues
We use security risk analyses in our business processes to
balance protective security with the values we want to
protect
We systematically assess business related security and
political information
We verify the background and competence of personnel in
business critical positions
We ensure that appropriate response mechanisms are in
place to minimise the impact of any security incident
We follow up security incidents to prevent recurrence and
enable learning
59
Sustainability
Our approach
We are committed to
We contribute to sustainable development through our

core activities wherever we work. We use natural resources
efficiently, and provide energy which supports sustainable
development.

Integrating sustainability in the way we do business
Contributing to the development of sustainable energy
systems and technology
Making decisions based on the way they affect our interests
as well as the interests of the societies and the ecosystems

in which we operate
Respecting human rights and labour standards

Ensuring anti-corruption and transparency on all sustainability
issues and active engagement with stakeholders
Contributing to local content by developing skills and
opportunities in the societies in which we operate
60
Corporate
policies
How we work
We identify and manage environmental and social risks and
We exchange experience with national partners and support
We apply clean and efficient technologies to reduce the
We undertake sustainable social investment projects in
opportunities based on stakeholder dialogue, as well as risk

and impact assessments
negative environmental impact of existing operations
We work to limit greenhouse gas emissions
education and skill building in oil- and gas-related disciplines

to build lasting capacity
affected communities so that they can share in the benefits
provided by our activities
We respect international labour standards and the rights of
indigenous peoples
We promote transparency through support for international
industry standards, and by publishing our income, expenditures and taxes in all the countries in which we operate
We hire and develop local people and promote local sourcing

We ensure that local suppliers comply with applicable laws
and meet our expectations and standards
We work with others to help establish sustainable local
enterprises and support the efforts of our suppliers to close

gaps in order to meet our standards
61
People
Our approach
We are committed to
We ensure quality in the selection and development of our

people to give us the expertise we need for delivering excellent
results.
Attracting and selecting the right people

Providing opportunities for people to grow
Encouraging our people to take responsibility for their own
development
Incorporating our values in everything we do

Rewarding our people on the basis of their performance
delivery and behaviour
Creating a caring and inspiring working environment which
promotes diversity
62
Corporate
policies
How we work
We need people with integrity who identify with our
values and are committed to teamwork, who have proven

their ability to deliver, and who are able to change and
learn
We all need to take opportunities to develop and perform,
to grow and to share. Together, we make sure that each of

us has the right knowledge, skills and support to get the
job done. We all teach and learn
We all set clear, challenging and value-adding goals
and deliver on these. We give and receive direct and

continuous feedback to help us change and improve
We reward and recognise delivery and behaviour equally.
Performance is both what you deliver and how you behave
Our rewards and recognition are designed to attract and
retain the right people people who perform, change and

learn
We care about each other, and create a safe and healthy
working environment
We recognise the need for flexibility, and respect the fact
that people have changing needs over the course of their

careers
We regard an understanding of the cultures in which we
work as essential to the success of our operations around

the world
We believe in diversity and equality of opportunity. We
prohibit discrimination and harassment in the workplace
We believe that open and honest communication is
essential in all aspects of our work
We involve our people on business and organisational
issues, and their appropriate representatives in accordance with local practice
Management, our people and their representatives are
jointly responsible for initiating and actively supporting

and contributing to collaboration. It is essential to have a
good and confidence-based relationship between our
people, their representatives and our company
63
Communication
Our approach
We are committed to
Open, honest and fact-based communication is critical to

our business success. We integrate reputational risk in our
decision-making processes. We act with social responsibility
and communicate with quality and precision to build a strong
corporate brand.
Managing our information and our brand as a corporate asset

Projecting a clear vision of our group: where we want to go,
what we stand for, and what we want to be known for
Evaluating political and reputational risk and integrating it in
business planning and investment processes
Communicating with speed and accuracy, setting the agenda
and driving dialogue proactively
Speaking with one voice and with consistency across the
organisation
Strengthening our corporate culture and driving change
64
Corporate
policies
How we work
We communicate honestly and never compromise on our
disclosure obligations
We communicate with the media through authorised
spokespersons with clearly defined areas of responsibility
All our external appearances are conducted with caution and
we never share corporate information without the appropriate

approval. That includes, but is not limited to, information on:
mergers and acquisitions
production volumes
oil and gas reserves
negotiations
future revenues and other financial information
We communicate internally along organisational lines of
responsibility and pursue internal communication as a

leadership responsibility
We support the accomplishment of business objectives
through communication along internal channels which can

reach all our people
We build our brand consistently, using an integrated
brand strategy across all media channels which is applied

by dedicated marketing personnel with clearly defined
responsibilities
We use research and insights to reduce our operational,
political and reputational risk and exposure
We practice government relations and public affairs in a
coordinated way
65
Risk management
Our approach
We are committed to
We identify, evaluate, and manage risk related to the value

chain to support achievement of our corporate objectives. We
manage risk to make sure that our operations are safe and in
compliance with our requirements. We have an enterprise-wide
risk management approach which means that:
Communicating and quantifying the total risk map, including
We have a focus on risk and reward at all levels in the
organisation
We evaluate significant risk exposure related to major
commitments
We manage and coordinate risk at corporate level
66
upside and downside potentials, to our decision-makers
Understanding our total risk and taking appropriate actions
Corporate
policies
How we work
We identify, evaluate, and manage operational risk to avoid
undesirable incidents and to strengthen operational

performance
We identify risk related to strategies, targets and plans
We use Value at Risk measures and mandates for all our
trading
We assign and review internal credit ratings and our global
credit limits at the corporate level
We manage risk on a short- and long-term basis, and
We insure against physical damage, business interruption
We establish and present a risk overview as part of the
We use our business impact analyses to act on risk and
focus on what is best for us as a group in order to avoid

sub-optimisation
decision-making process for investment projects at
pre-defined milestones
We manage exploration and project risk at individual and
portfolio levels
and third-party liability at the corporate level, and optimise

our level of self-insurance
ensure business continuity
Our corporate risk committee assesses and discusses
measures to manage the overall risks for Statoil
We assess reputational consequences as part of the
decision-making process
We measure and adjust for country risk in large investment
projects
67
Finance and control

Our approach
We are committed to
Executing Ambition to Action to a high quality standard,

including financial performance, reporting and control, is
essential to the way we run our business.
Driving performance across all business dimensions. We

make every effort to ensure that our group is competitive and
that we fulfil our overall ambitions and strategic objectives
68
Corporate
policies
How we work
We ensure that Ambition to Action is established at all
The following activities are managed and optimised at the

corporate level:
We follow up all commercial activities at every business
Treasury, cash management and payment solutions
relevant business levels

level
We provide reliable and relevant internal and external
financial information, and ensure that this is based on

corporate accounting principles and reporting requirements
We ensure high-quality decisions, including efficient and
value-creating capital allocation
Tax planning
Financial asset management
Financial structuring and funding at corporate and
subsidiary levels
We ensure that investment decisions are based on the net
present value of unbiased cash flows. Relevant risk factors

are described and evaluated, and form part of the decision
documents
We ensure high-quality financial risk management as well as
efficient corporate funding and capital structuring
69
Procurement
Our approach
We are committed to
We believe that our suppliers contribute significant value to us,

and to our partners and customers. We believe that maintaining
a strong relationship with high-quality suppliers will help to give
us a sustainable competitive edge.
Using suppliers who operate consistently in accordance with
our values, and who maintain high standards for safety,

sustainability and ethics
Securing the best value through optimum use of in-house
and supplier resources to provide products and services with

the right quality, delivered on time
70
Corporate
policies
How we work
We ensure that supply chain management is tightly
integrated in the planning, execution and follow-up of

projects and operations
We develop, integrate and implement sourcing strategies to
achieve the best contracts for the benefit of our group

through a category approach to goods and services, based
on aggregated demand management, the global market
position and robust analysis to minimise execution risk
We incorporate the effects of country-specific requirements
for supplier development and collaboration when considering new commercial developments
We operate in accordance with the principle of segregation

of duties, compliance and control principles, which means:
Line management is responsible for planning demand,
allocating technical and operational expertise and approving

recommended suppliers
Procurement entities are responsible for coordinating
proactive demand, planning and executing procurement on

behalf of line management, and committing us in relation to
the supplier in accordance with the authority delegated from
the chief procurement officer (CPO)
We base procurement on competitive bidding and the
principles of transparency, non-discrimination and equal

treatment of bidders
We support cost-effective procurement through simple and
standardised tools, systems and work processes to ensure

quality, efficiency, spending transparency and appropriate
automation
71
Ethics
Our approach
We are committed to
We believe that ethical conduct is a necessary condition for

sustainable business.
Implementing our business activities in an ethical and

transparent manner
Acting comfortably within our ethical standards and within
the law
Requiring high ethical standards of our people and everyone
who acts on our behalf
72
Corporate
policies
How we work
We treat ethics as an integrated part of our business activities
We create awareness on ethics through regular training and

communication
We work systematically to understand and manage risk related to

ethics
We work in a systematic manner to ensure compliance
We have leaders who demonstrate ownership to our ethical

standards by what they say and do
We consider taking disciplinary action in response to breaches of

our ethical standards
We comply with applicable laws and regulations in all our markets
We manage risk through in-depth knowledge of our suppliers,

partners and markets
We are open in dealing with ethical issues related to our business

and address ethical concerns or dilemmas immediately with line
management, relevant internal entities or through the ethics
helpline
We expect our suppliers and partners to have high ethical standards

We work with government organisations, industry associations,
civil society and business associates to develop best practice
We run an ethics helpline to ensure that ethical concerns can be

raised
We have established ethics committees to ensure discussions and
transfer of experience
We spend sufficient time deciding on difficult ethical questions
73
Managing information
Our approach
How we work
We manage information as a key corporate asset
We understand requirements and responsibilities for

managing information
We are committed to
We use, store and archive information in accordance with

legal requirements, as well as operational, financial and
historical needs
Prioritising the management of business critical information

Managing information in accordance with risk exposure
Sharing information to ensure efficient use and experience
transfer
Making information available for future needs
Ensuring information quality
74
We manage and share information according to security

classification
We ensure that information ownership is clearly defined
We use verified sources and approved storage systems
Crossing energy frontiers

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The Statoil

At Statoil, the way we deliver is as important

Our management system contains the principles, policies and

The Statoil Book - version 3.1

The Statoil Book

Validity area: Statoil group all locations

The Statoil Book - version 3.1

The Statoil Book - version 3.1

We have a management system which defines

The Statoil Book - version 3.1

1. Contribute to safe, reliable and

The Statoil Book

Our management system has three

3. Support our business performance

Commitment to and compliance with

Business area requirements

The Statoil Book - version 3.1

3. Business area requirements

The Statoil Book - version 3.1

Our values embody the spirit and energy of Statoil.

The Statoil Book - version 3.1

Be imaginative and ambitious, and stimulate new ideas

Be truthful and act with integrity

Use foresight, and identify opportunities and challenges

Be curious, work together and share experience

Challenge accepted truths and enter unfamiliar territory

Promote and value diversity

Make clear demands on each other and push for

Communicate in a precise way, give and accept constructive

Understand and manage risk

Bring up ethical issues and challenges immediately

The Statoil Book - version 3.1

Cause zero harm to people and prevent accidents

Continuously develop sound expertise, demonstrate

Reduce the negative impact of our activities and products on

Strive for simplification and clarity, and focus on

Act decisively and be loyal to decisions

Demonstrate social responsibility and contribute to

Show dedication and endurance, follow through and pay

attention to important details

Respect the individual, help others to succeed and

contribute to a positive working environment

The Statoil Book - version 3.1

It is our people who enable us to meet our challenges

The Statoil Book - version 3.1

and goals and challenging and meaningful job opportunities

Build a high-performing environment, and give direct

feedback on your performance

Recognise and reward your performance based equally on

what you deliver and how you behave

Value diversity and provide equal opportunities

The Statoil Book - version 3.1

Recognise that change is vital to our business, commit to

The Statoil Book - version 3.1

The Statoil Book - version 3.1

Leadership development principles

Ambition to Action for your team is reviewed

Progress is reviewed on the basis of

My Performance Goals for the

Performance appraisal of last years