The Establishment of the SDFI and Petoro
The foundation for Petoro was laid in 1985, when the State’s Direct Financial Interest (SDFI) was established.
Statoil, now Equinor, managed the SDFI until 2001. The partial privatisation of Statoil led to the responsibility being transferred to a new state-owned management company, Petoro AS, which was established on 9 May 2001.
Petoro's History
In many ways, Petoro’s history began with the establishment of the State’s Direct Financial Interest (SDFI) through the so-called “clipping of Statoil’s wings” in 1984/85. However, the company Petoro was not established until 2001, when the partial privatisation of Statoil necessitated a new management arrangement for the SDFI.
In the early 1980s, there was intense debate about Statoil’s rapid rise to a dominant position in Norwegian petroleum activities and in the Norwegian economy more generally. At the same time, the Willoch government was concerned about the risk inherent in a relatively young company managing a very large share of the State’s revenues.
The Political Compromise on the SDFI
Through a broad compromise negotiated between the Willoch government and the Labour Party, it was decided to transfer approximately half of Statoil’s ownership interests in licenses to the SDFI. As part of the compromise, Statoil nevertheless retained its entire large interest in Statfjord and substantial interests in Gullfaks and other important fields.
Statoil was appointed to manage the SDFI until the company was partially privatised in 2001. The management arrangement involved Statoil marketing the State’s oil and gas together with its own. This arrangement has continued even after the establishment of Petoro.
The Establishment of Petoro AS
At the same time as the partial privatisation, the Storting (Norwegian Parliament) adopted a new arrangement for the management of the SDFI. It was decided to establish a new state-owned company for this purpose, Petoro AS, which through a new Chapter 11 of the Petroleum Act would act as the licensee for the State’s ownership interests.
Petoro AS was incorporated on 9 May 2001, with Tore I. Sandvold as Chair of the Board.
In parallel with the establishment of Petoro, the SDFI was reduced as a result of the sale of the State’s ownership interests to Statoil (15 percent), Hydro, and other companies (6.5 percent).
Mandate and Purpose
The mandate given to the company was, on a commercial basis, to create the greatest possible value and achieve the highest possible revenue for the State. Reference is made to Proposition No. 36 (2000–2001) to the Storting and Chapter 11 of the Petroleum Act.
