Statoil makes Euro contingency plans / News / The Foreigner

Statoil makes Euro contingency plans. Norwegian oil giant Statoil says it has been working on a crisis plan if the euro folds. Statoil management fears euro zone troubles could put its investments in serious danger, and has been looking at the potential risks for a year. The multi-scenario measures range from dramatic falls in energy prices, to stopping Statoil from floundering, reports the concern.

eurozonecrisis, statoilinvestments, contingencyplan



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Statoil makes Euro contingency plans

Published on Wednesday, 26th October, 2011 at 10:57 under the news category, by Oana Pintilie.

Norwegian oil giant Statoil says it has been working on a crisis plan if the euro folds.

Euro currency
Euro currency
Photo: Julien Jorge/Wikimedia Commons


Statoil management fears euro zone troubles could put its investments in serious danger, and has been looking at the potential risks for a year.

The multi-scenario measures range from dramatic falls in energy prices, to stopping Statoil from floundering, reports the concern.

Company Treasury division spokesperson Morten Færvåg said to Dagens Næringsliv (DN), “We are ready to handle the worst possible situation, especially regarding what could happen in the euro zone, meaning the euro’s collapse, for example.”

“We started making a so-called three-stage plan one year ago, wanting to see what could be done whilst we still had time, that is to say, planning under favourable conditions,” he continued.

However, 2Q initial results indicate financial buoyancy, with Statoil having 78 billion kroner in cash and financial investments. It has also reduced market risks by one billion.

“We are in an extremely good position and have a good supply of liquidity for the foreseeable future. We should be able to handle almost anything based on the preparations we have made and what we have done to build assets,” said Mr Færvåg.



Published on Wednesday, 26th October, 2011 at 10:57 under the news category, by Oana Pintilie.

This post has the following tags: eurozonecrisis, statoilinvestments, contingencyplan.





  
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