1. e-Business in an international oil company 22.04.2002 WTO Seminar on e-Business Geneva Morten Sven Johannessen, Statoil mosvejo@statoil.com

2. Statoil – some facts Established in 1972 Headquarters in Stavanger, Norway Partially privatized in 2001 through IPO process 16,700 employees in 23 countries Production/Reserves: 1 mmboepd/4.3 bn boe Marketing 2/3 of Norwegian gas volumes Worlds 3 rd largest crude oil seller Integrated oil and gas company with strong E&P focus www.statoil.com

3. Why does Statoil need e-Business? Globalisation of industry. Reduce cost of extracting, refining and marketing oil and gas. Maximize usage of scarce and disbursed resources. Take advantage of technical advances in IT and telecommunications. Reduce risk and mitigate best practice in operations and Health Safety and Environment (HSE). Offer training and consistency in information distribution throughout the company, regardless of geography and time-zones.

4. e-Business in Statoil e-business –e-commerce ƒb2c (business to consumer) ƒb2b (business to business) ƒb2e (business to enterprise, business to employee) –e-collaboration –e-learning

5. Statoil's e-business Roadmap Create Harvest Build and operate Identify opportunities Organise and prioritise Develop skills and awareness Launch pilots Take ongoing and new e-business initiatives "live" Measure, improve, expand Integrate e-business into corporate and FO/RO strategy processes Reap benefits with: Supply chain Collaboration Remote operation Borderless information management and effective knowledge sharing Foundation..19992000 20012002.. Implement new work-processes Fully integrated SAP solution Organization change Organization readiness

6. E-business activity matrix Statoil DifficultEasy Low High Ease of implementation Value Creation Potential = Initiative fully operational, active users exist = Initiative decision has been made. In development phase. = Planned initiative. Final go- decision not made NetShop Norway/Sweden Netshop Lubricants NetShop Denmark NetShop Ireland Eureka Norway Eureka outside Norway Trading paper deals Market information Statoil Card Tradenet Electronic doc. Distribution BOB extranett Licence web E-logistics Tampen improvement E-fields E-engineering Mat.master/ Tech.info Real Time systems E-fieldspilots LicenseWeb Dispatch Web Request Emden Hub Upstream Market Phoenix Clearing Troll Swing/ Lifting accounts Beringen E-learning Recruiting E-travel E- Collaboration tools Portal framework

7. Reduction of internal transaction costs Reduction of external transaction costs..result, reduced costs Improved and simplified flow of information and data High speed access to information Standard infrastructure and standard collaboration tools..result, better, quicker safer and more cost efficient information Harvest further benefits from existing systems..result, "operational excellence" = competitive edge Where are the benefits?

8. What are the expected effects? Reduced cost of exploration, production, refining and marketing Reduced time to oil, better recovery rate Improved HSE, reduce accidents and unwanted situations =better competitiveness How will this affect our business? Increased cooperation on establishing standards and processes Visibility of suppliers and accessibility of suppliers on Marketplace infrastructure Ease of operation, faster time to market Ease of starting up in new locations, better utilization of existing infrastructure

9. Effects of taxation on business transactions crossing borders Effects on procurement of tangible goods across borders No intended effects, –but may lead to consolidation of suppliers, –creates an opportunity for good local suppliers in new markets Effects on procurement of in- tangible goods across borders Internet as delivery platform, –Intellectual property will be distributed using the Internet, Intranet and Extranet, difficult to track. Companies will optimise according to need, i.e. on managing access through corporate wide Intranet Internet as business driver for new products and services Tangible goods become digitised and transformed into services, i.e. valves machinery, pipelines. Physical goods will become value add services managed over the net

10. Effects of taxation on business transactions crossing borders Effects on services Geographically disburse –Best of breed services bought where services are offered, i.e. engineering and IT from India, service centres (call centres) from Eire. Using the Internet as transaction, delivery and communication tool Bottom line, we optimise as we have always done, but do not exploit the net to avoid taxes

12. B2B Pilot eOil Trade Ranger New user interface and internal catalogue Regional catalogue Global e-commerce solution for the oil and gas industry 1999 The road to b2b e-commerce in Statoil 2001 Horizontal marketplace Horizontal marketplace in Scandinavia 2000