StatoilHydro Proposes New Organization of Offshore and Onshore Facilities

StatoilHydro presented a proposal for a new organizational solution and instruments for the integration and restructuring concerning offshore installations, supply bases and onshore facilities.

The proposed new organization model will now be discussed with all the employees' unions in the central union-management committee of StatoilHydro.

The goal of the restructuring and integration work is to create a real integration of Statoil and Hydro's oil and gas activities and also to develop a new, common culture throughout the group.

"The purpose of this stage of the integration work is to strengthen the operational parts of StatoilHydro's activities, create a common culture and make full use of the combined knowledge and experience the group possesses," Hilde Merete Aasheim, who is leading the integration and restructuring work.

"The integration process is an important tool to improve operations and strengthen our focus on health, safety and environment on platforms and onshore facilities," she says.

Planning of the integration and restructuring work has been led by a group of representatives of the group's top management and the unions.

Agreement has been reached with all the unions in the integration team on the models chosen for gas processing plants, refineries and terminals.

With regard to a new organizational solution for the offshore activities and base operations, Industri Energy, Norwegian Society of Engineers and the Norwegian Society of Chartered Technical and Scientific Professionals are positive to the proposed solution, but will not give their final reply before the impact assessment has been completed.

The Norwegian Union of Energy Workers (Safe)/Confederation of Vocational Unions (YS) has stated that the union does not support the proposed operational model.

A final decision on a new organizational model will be made by the group after the employee representatives have had the opportunity to present their views on the proposed model.

StatoilHydro aims to complete the final formal processing during June 2008. The tempo of the restructuring work will be determined by the requirement for safe and efficient operations.

This stage of the restructuring work covers the parts of the group's activities that were not affected by the integration process in 2007. Close to 7,300 employees are affected by this stage of the integration.

The first stage of the integration process began before the establishment of StatoilHydro on 1 October 2007 and included around 9,000 employees.

The model chosen gives the employees security because all employees are ensured a job in the new organization, all employees on an offshore contract will keep their contract if they prefer. Additionally, all employees on onshore facilities will keep their employment at the facility and no employees will be forced to move to a different geographical location (place of residence).

"The management and the unions have had common goals for the integration and restructuring work," says executive vice president Hilde Merete Aasheim.