StatoilHydro has signed an agreement for the sale of its energy and retail business on the Faroe Islands.

The P/F Ognarfelagid Megd investment company is buying all shares in Statoil Føroyar P/F and takes over the company with effect from 19 December 2007. The sale is in line with the business cluster’s overall strategy of focusing its resources in Norway, Sweden and Denmark as well as expansion eastwards.

Management and employees in P/F Statoil Førayar will remain in their jobs. The company has the right to use the Statoil brand for 18 months after the takeover.

“We are pleased that the new owners will develop the company further together with the present management,” says Jacob Schram senior vice president, energy and retail Europe.

StatoilHydro’s upstream business is not affected, maintaining its Statoil Færøyene AS subsidiary. The company will continue to supply the Faroes’ Vagar airport with Jet A1 aviation fuel.

StatoilHydro has run its Faroese business for almost 60 years under different brand names. P/F Statoil Førayar markets all kinds of petroleum products and presently has a total market share of just over 50%. This is a business with long traditions, but which now lies outside StatoilHydro’s geographic focus area.

“It’s positive that a company with such long traditions can continue its development with the support of enthusiastic local owners,” Mr Schram says.

The P/F Megd investment company is owned by local Faroese investors including the Føroya Banki retail bank.

StatoilHydro will simultaneously sign an agreement with the new company for the supply of petroleum products, aviation fuel and lubricants to Faroese customers.

The partners have agreed not to publicly disclose the takeover sum.

Tags: StatoilHydro