notes to the accounts
1. sales CRUDE OIL: All of the company’s crude oil production is sold to the ultimate parent company, Idemitsu Kosan Co., Ltd. The crude oil is sold on a FOB (Free On Board) basis. Idemitsu Kosan Co., Ltd. sells this oil directly to StatoilHydro on a long term sales agreement. Idemitsu Petroleum Norge AS receives the norm price linked price paid by StatoilHydro less a margin for Idemitsu Kosan Co., Ltd. This margin covers all sales and transportation and shipping activities as well as swapping arrangements to secure crude oil supply to Japan. In 2008, a total of 11.1 million barrels was sold. royalty: Idemitsu does not participate in production licenses where royalty is levied. ngl: All NGL is sold to StatoilHydro on long term contracts. dry gas: All dry gas is sold to StatoilHydro on long term contracts. tariff income: Vigdis well stream is processed at the Snorre TLP. Idemitsu has a 9.6% share of both fields. The processing tariff revenue and cost, which are booked under ‘Tariff income’ and ‘Production cost, processing tariff ’ respectively, have no net profit impact on the company’s accounts.
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idemitsu petroleum norge as