FROM MOBIL TO STATOIL ON STATFJORD:

When the ruling Labour Government in Norway in the early 70-ties went out for an operator on what later become the Statfjord field they looked for an oil company willing to on a later stage to hand over the operatorship to the newly created state owned oil company Statoil. While other international oil companies refused, how come that Mobil Oil accepted this role?

Finn Lied (Head of the Defense Research Institute at Keller outside Oslo, and central in nuclear research) was Minister of Industry. Former Secretary to Prime Minister Gerhardsen and Minister of Defense lawyer Jens Chr. Hauge acted as advisor to the Ministry in the establishment of Statoil.

How come Mobil oil accepted the conditions of training and handing over the operatorship to Statoil? What was the personal relationsships?

Former US Secretary of State Mr. Henry Kissinger was by the Norwegian Nobel Committee selected for the Nobel Peace Prize for his engagement in the Vietnam Peace negotiations. Mr. Kissinger had good relationships within the oil industry among others from the Oil Crises in the Middle East,( ref "The Seven Sisters" by Anthony Sampson 1975, published in Norway by Tiden Norsk Forlag in 1977).

Few years after the oil strike on Statfjord, on July 1975 the Norwegian Parliament introduced the Petroleum Revenue tax with retroactiv effect for all fields on the Norwegian Contnental Shelf. The only political party voting against was the Progress Party, i.e. Anders Langes Parti - Fremskrittspartiet, who stated the retroactive effect to be in conflict with Norwegian Law and to be regarded as a criminal act.

The Petroleum Revenue tax and its retroactive effect was detremential for cost consciousness. The ones who suffered was the independents, the private owned Norwegian industry, independent shipyards converting to oil activities, constructing parts and modules on lump sum contracts or unit rates, who did not have the experience and administrative capacity to handle the consequencies of changes, revised drawings, alterations, rework, while managment/engineering contractors on reimbursible contracts like NPC/B&R on Stafjord B, made money on alterations and revising same drawings.

Together with Labours "motkonjunkturpolitikk" the international competitivnes of the land based industry in Norway declined, leading up to todays situation with only a few dominating actors as Statoil and Aker-Kværner.

The lack of ecconomic freedom in Norway today is comparable to prior east Europe. The monetary flow is to a high degree controlled by the state or state controlled financial institutions - ownership or by collaborators on the Board of Directors and Management level.

The retroactive Petroleum Revenue tax was an offence to the international oil industry helping Norway to find and develope its first oil. Their incentive to stay cost conscious could be questioned as result of the retroactive tax. Even if oil prices increased, this was not due to Norway. Norway was in the mid 70ties a "passenger". Sayings like "Its better to get 50% of something than 100% of nothing" could be heard within the industry.

Expenditure by operators on the Norwegian Shelf increased, together with demands for loans from international financial institutions as Chase Manhattan banc and others, lending money to the oil industry for development of Statfjord and other fields. As such the international banking industry had good times, and no incentive to reduce ongoing spendings.

The looser was the average man in the street, who experienced higher consumer cost, less competitivness, lay off, lack of industrial jobs and ecconomic freedom.

Although Norway today have an oil monetary fund with several hundred billions kroner, Norway suffers, and could have been better off, prepared for the future. "The stone age did not end because of lack of stone"

The lack of cost incentives was part of the results of the "North Sea Cost Analysis" - "Moe-committe" work (1979-80), which results where drowned by the "Kielland" - disaster March 27th 1980.

A scenario put on paper only few years earlier by Allistair McLean in his novel "Sea Witch", first published in Norway by Cappelens forlag in 1977 under the title "Havheksen".

My contact with Herbert Kissinger and his stated relationship to Henry Kissinger, and possible relations to the norwegians Finn Lied and Jens Chr. Hauge, Statoil - Mobil - Halliburton/Brown & Root was put forward in a letter of June 7th 1988, with copy to David Rockefeller jr on Chase Manhattan Banc, to which I never have received any response, page 1, page 2, page 3.

August 2004
Ole Ostlund
President FALK International



Note: When the left wing journalist Bjorn Nilsen of Norwegian Broadcasting was showing his TV documentary story on the oil industry, I was not surprised to notice doors had been opened for him to interviue people you rather would expect not talking to him.
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