StatoilHydro chairman steps down

StatoilHydro chairman Eivind Reiten has resigned.

Eivind Reiten, chairman of Norway's newly merged petroleum giant StatoilHydro, resigned on Thursday evening in the wake of suspicious dealings by Hydro in Libya.

Hydro had investigated suspicious 'consultant' payments made in connection with Libyan oil rights by Saga Petroleum, a company Hydro took over in 1999. The previous Hydro investigation, which took place when Reiten was head of light metals for the company, concluded that the matter had been wrapped up in a proper manner.

Financial daily Dagens Næringsliv (DN) reports that a South African company Vexhol, with no obvious links to Libyan oil, received NOK 40 million (USD 7.34 million) linked to Saga/Hydro's Libyan deal, and this company and the money have vanished without a trace.

DN reports that Vexhol is registered as dealing in "wholesale, retail, vehicle repair, motorcycles, household goods, hotels and restaurants" and was established by a Abdurrazag Khaclea Gammudi in October 1997. This person was not known at the company's registered address.

Reiten felt he had to step down in light of the growing scandal, and said that there was an "enormous need to get to the bottom of the matter".

Kjell Kvinge, union representative for Hydro staff, told newspaper VG that he felt that Tore Torvund, StatoilHydro's chief for Norwegian field operations, should have resigned, not Reiten. Torvund was CEO for Hydro's oil division from the year 2000, and had responsibility, under Hydro CEO Egil Myklebust, for the possible payoffs in 2000-2001, VG reported.

Terje Nustad, leader of the union SAFE, which has many Hydro staff amongst its membership, told VG that other heads should roll as well.

"It is completely incredible that they have not previously provided information about what has happened in this very important matter. Reiten and the two CEOs have zero credibility left," Nustad told VG.

Heidi Høivik, professor of ethics at the Norwegian School of Management posed another question, about StatoilHydro's new head of integrity and societal responsibility, Anders Kullerud.

"Why did StatoilHydro's new chief for societal responsibility wait until last Wednesday to tell about the possible corruption he knew about in Libya," Høivik said in VG.

Affiliated Norwegian financial site
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Jonathan Tisdall

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