Statoil undertook the following actions to communicate with stakeholders on its progress in implementing the Global Compact principles

Statoil reports its value creation along a triple bottom line - economic performance, environmental impact and effect on society - in its report on sustainable development: "Statoil and sustainable development 2003". The report on sustainable development has been prepared in accordance with the 2002 Global Reporting Initiative (GRI) Guidelines and contains a GRI Index on page 62. The first section of the report (pages 2 to 15) is dedicated to transparency and fight against corruption and describes Statoil''s core values, corporate governance and business ethics.

Statoil''s performance on human rights is addressed in the "Social Responsibility" section of the report (see pages 44 to 48). The company is committed to observing and promoting human rights in its activities and pursues an open dialogue over human rights issues in its projects. The report provides that "through discussions with stakeholders, we seek to identify relevant problems as early as possible in order to take them into account in our planning and implementation." The report describes the company''s challenges with human rights (including armed security personnel) and highlights projects that the company conducts in the area of human rights (e.g. development of guidelines on the right of indigenous peoples affected by the company''s operations and support for language conservation). The report also describes the company''s target for 2004 to assess the social impact of its projects.

Statoil''s relationship with employees is described on pages 52 to 60 of the report. The company''s core labour standards, based on principles 3, 4, 5 and 6 of the Global Compact, consist in freedom of association and collective bargaining, freedom from forced labour, elimination of child labour and freedom from discrimination in employment. The report describes the challenges and performance of the company in this area, including the status of female workforce in 2003. The report also describes the company''s targets for labour performance.

Statoil''s environmental performance, guided by a goal of "zero harm," is reported on pages 16 to 33 of the report. The report addresses the challenge of climate change and the company''s actions to reduce annual greenhouse gases emissions by 1.5 million tonnes of carbon dioxide equivalent by 2010, through carbon emission cut and emission reduction with the aid of Kyoto mechanisms. The report also addresses Statoil''s actions, performances and targets to keep emission to the air and discharge to water below the critical level relevant for relevant eco-systems. The report addresses other environmental issues such as conservation of biological diversity, product stewardship and research for new energy.

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Ernst & Young conducted a review of the report in order to substantiate its contents. Details on this review can be found on page 64 of the report, including the basis of the review and conclusions from Ernst & Young.

Statoil''s sustainability benchmarking is described on page 41 of the report. In 2003, the company maintained its position on the Dow Jones Sustainability Index World (DJSI) and the FTSE4Good index during 2003. In addition, the company has been included in the Goldman Sachs Energy, Environmental and Social Index from February 2004 and ranked third among the world''s oil companies after BP and Shell.

For Statoil, dialogue with stakeholders opens opportunities to respond to objections and suggestions by adapting its operations. The report provides examples of stakeholder dialogue, such as environmentalist, Norwegian authorities, customers and suppliers. Statoil''s objective for 2004 is to strengthen contacts with the UN and the World Bank system and to log stakeholder dialogues in a more systematic way.