Petoro’s purpose is to safeguard the commercial aspects associated with the State’s Direct Financial Interest in petroleum activities on the Norwegian continental shelf, as well as associated activities. Management is exercised at the state’s expense and risk.
The company has three main duties:
Petoro’s operations are subject to the Norwegian Limited Liability Companies Act and the Norwegian Petroleum Act, as well as the Regulations on Financial Management in Central Government — including the rules on appropriations and accounting. The Instructions for Financial Management of the SDFI and annual letters of allocation govern how the company manages the SDFI’s activities. In addition, the company’s Articles of Association, strategy, values and guidelines on business ethics, including its guidelines for exercising the company’s CSR, provide guidance for Petoro’s activities.
Petoro’s strategy has been prepared with a point of departure in the SDFI portfolio and changes in its surroundings. This strategy takes a point of departure in the company’s vision and overall goals. The goal is to create the greatest possible values, and achieve the greatest possible revenue for the state from the SDFI, while at the same time safeguarding sustainability and the climate. The strategy has five priorities, chosen based on their value potential and Petoro’s opportunity to exert influence: (1) sustainability and climate, (2) more wells by increasing drilling efficiency, (3) better understanding of reservoirs, particularly by utilising opportunities for digitalisation, (4) choosing solutions with a long-term perspective in field development, and (5) increasing the utilisation of facilities through safe and efficient operations.
The company is the licensee for the state’s portfolio on the NCS, with the same rights and obligations as other licensees. The scope of the SDFI portfolio gives Petoro the overview and insight to be a driving force on the Norwegian shelf. The company works to reinforce value creation opportunities with emphasis on long-term business development through focused follow-up, supported by in-depth professional commitment. Petoro’s follow-up of activities in the joint ventures is differentiated on the basis of its capacity and the commitment required to perform its role. The company endeavours to achieve good governance in the joint ventures, and cooperates with other operators and partners on further development of good performance-management processes.
Pursuant to the agreements for petroleum activities, the commercial information Petoro receives is subject to confidentiality. The company has internal instructions for dealing with inside information received by Petoro. These apply to the company’s directors, employees, auditor, advisers or others in a relationship with the company who receive information that is not publicly known and/or expressly defined as “inside information” within the meaning of the Norwegian Securities Trading Act. Information that may have an impact on the stock market must be treated as “inside information”.
A special system has also been established for approving external directorships held by employees. Employees must ensure that their ownership of shares does not create any conflict between their personal interests and management of the state’s participating interests or the interests of Petoro AS. Senior employees (President and CEO and employees who report directly to the President and CEO) are prohibited from owning shares in licensee companies.
Petoro presents separate accounts for SDFI portfolio transactions, which form part of the government’s accounts. Cash flows generated from the portfolio are transferred to the state’s own accounts with Norges Bank.