Before we open the AGM, we want to remember those who lost their lives in the helicopter accident near Flesland. Dear everyone, on Friday, 29th April, we received the message that the helicopter on its way from Gullfaks B to the heliport at Flesland had crashed. 13 people, two pilots and 11 passengers, died in one of the worst helicopter accidents in the history of Norwegian oil industry. The worst imaginable had happened. 13 people, all at work for Statoil, did not get back home safely from their jobs that day. The thirteen are Behnam Ahmadi, Olav Bastiansen, Arild Fossedal, Tomas Helland, Silje Ye Rim Veivåg Kroghsæter, Ole Magnar Kvamme, Espen Samuelsen, Iain Stuart, Lyder Martin Telle, Odd Geir Turøy, Otto Mikael Vågsæther, Michela Vimercati, Kjetil Wathne.
Now 13 families are left with an unfathomable loss of a loved one, and with them, and with colleagues and friends, we grieve over this unimaginable tragedy. Ole Magnar Kvamme began working for Statoil in 1988. He was trained as a certified electrical contractor. He had more than 10 years of operational experience offshore. Recently, he worked on installation integrity at Snorre, Gullfaks A and Gullfaks B. He was a respected professional and a valued friend. Ole Magnar Kvamme leaves behind three grown children and two grandchildren. The 13 people we lost were working for seven different companies. When accidents happen, we don't compartmentalize. They were all our colleagues. For Statoil. They were all at work for Statoil.
The whole oil and gas industry are together in the grief, together in looking after the families, together in supporting colleagues and friends in their loss, but also together in our efforts to find the cause of this. Everything that can be done will be done to find an answer and to avoid it happening again. I ask us all to remember the 13 who died in the helicopter accident near Turøy in Hordaland with a minute of silence. I would like to welcome you all to the annual general meeting of Statoil ASA. My name is Olaug Svarva, and I'm Chair of the Corporate Assembly and the Nomination Committee at Statoil.
As you will see from the notice convening the meeting, the Board of Statoil ASA has appointed me to open today's annual general meeting in accordance with 5-12 of the Norwegian Public Limited Liability Companies Act. With me on the panel, I have Chair of the Board of Directors, Øystein Løseth, CEO Eldar Sætre, Vice President General Counsel Hans Henrik Klouman, and Corporate Secretary and Attorney at Law Hilde Grønland. Before we begin, I'd like to ask everyone to please switch your mobile phones to silent mode. All shareholders in attendance and entitled to vote received ballot slips when they registered today. The ballots will be used for any written ballots. It's also been possible to vote electronically for a period of time prior to the general meeting. Those who are attending the general meeting here and have already voted electronically need not vote again.
In the event of any written ballot, the ballot will be tallied in an adjacent room under the scrutiny of representatives of the independent auditor, KPMG. If anyone would like the floor during the general meeting, please give a signal and introduce yourself by name. Shareholders may grant the right to speak on their behalf to one advisor. Those who would like the floor will be asked to go to the rostrum, and this is necessary for technical reasons. I mean, that is due to the direct webcast of this general meeting. Those who take the floor will have a time limit of three minutes to state their case. We also have two proposals from shareholders. When we come to these items, the time limit of five minutes will apply.
It is important to observe this time limit to also allow everyone interested to take the floor to do so. To facilitate practical implementation of the meeting, we will try to organize comments and questions on an issue-by-issue basis, but I will come back to this as we proceed. I have now come to item two, registration of attending shareholders and proxies. I have now received the list, which means that 119 qualified voters are here today, representing, with the advance votes cast, a total of 0.01% of the company's share capital. I think that actually was a rather low figure. No? Well, it's 0.01 is the advance votes cast. Of this company's share capital, 70.94% of these people represent their own shares, while 5.85% represent proxies.
Absentee votes totaling 76.57% of the share capital have been cast. Since I opened the meeting, it is my duty. Actually, we have now come to the election of chair for the meeting. The board of directors proposes that the general meeting elects the Chair of the Corporate Assembly, that is me, to chair the meeting. Are there any comments with this, or can you support this motion? There doesn't seem to be any objections, so therefore, the chair of the corporate meeting is hereby considered to have been elected. Item four, approval of the notice and the agenda.
Section, the Public Limited Liability Companies Act states that the general meeting shall be convened by a written notice to all shareholders with a known address, and, the notice, or the meeting shall be sent out not later than three weeks prior to the meeting. It has been sent to everyone registered in the Norwegian Registry of Securities on the date of the notification pursuant to the deadline specified in the act. The notice, financial statements, and directors' reports, as well as other attachments to the notice, are published on the company's website, also in compliance with the act. Thus notification has taken place in accordance with the Norwegian Public Limited Liability Companies Act and the provisions of the articles of association.
I would like to propose that the discussion on item seven, which concerns the authorization to distribute dividend based on approved annual accounts for 2015, item eight, which concerns the board of directors' proposal for the introduction of a two-year scrip dividend program, will be dealt with in connection with item six. Otherwise, that we adhere to the sequence evident from the notice. Are there any comments to the notice or the proposed agenda? That is not the case. All right. The agenda is adopted. We have now come to item five. We need to elect two persons to co-sign the minutes together with the chair of the meeting. The proposal is that the state's representative from the Ministry of Petroleum and Energy,
Johan A. Alvestad be one of those, and that Tor Magnus Kvestad be the second individual to co-sign the minutes of the meeting. Can you support this motion? Hereby approved. Item six, approval of the annual report and accounts for Statoil Group and Statoil ASA, including the board of directors' proposal for the distribution of the fourth quarter dividend. Under this, we will also address matters, discussions related to item seven, eight, and nine. I will hereby give the floor to Chair of the board, who will account for the board's view of operations, the board's proposal for dividend, and the board's proposal for authorization to distribute dividend based on approved annual accounts for 2015, and the board's proposal for approval of a two-year scrip dividend program. I hereby give the floor to Øystein Løseth first.
Thank you, Ole. Dear fellow shareholders, this year's annual general meeting is, of course, marked by the fact that we have recently experienced one of the saddest accidents that ever happened on the continental shelf. It reminds me of the responsibility we have and the focus we need to have on operational safety. If we can't safeguard our employees, everything else loses its meaning. Still, we do know that the unimaginable can happen. We've just experienced it. Then it is a task to carry out the emergency search and rescue operation the best we can. We need to focus on how we can support those directly affected. All good forces must be spent on finding the causes, learning lessons, and to make sure it doesn't happen again. Eldar will go into further details about the work we've initiated in his statement.
On behalf of the board, I would like to express my recognition for the subsequent work done since then. The efforts at Statoil's own organization and everyone else involved in this work is formidable. It is very important for the families, for those affected and for all companies involved. At the same time, I would also like to emphasize the significance of a targeted health and safety work to prevent accidents. The strength will further emphasize its focus and to work closely with the administration promoting this. Let me now move to comment on the company's activities for 2015.
I would first like to comment the Board's of Directors' report, the question about dividend and dividend shares, the board's statement on corporate governance, and also the board's response to item number nine, the shareholders' re-proposal for the company's strategy. I will revert to the other shareholder motion on item 18 and the Board of Directors' statement on executive salary and remuneration. The oil and gas industry operates in a challenging context. We experienced a cost trend which was not sustainable and which necessitated extensive efficiency improvement measures. The cost challenge was reinforced by a dramatic fall in the oil and gas prices from more than $110 a barrel, down towards $27 a barrel in a short span of time. In addition, an accelerating climate challenge requires concrete response in order to adjust to a low-carbon society.
Statoil addressed these challenges early. We are perhaps the most carbon-efficient company in the industry. We took early action to deal with the cost challenges and were, thus, in a better position to face lower prices than many others. Challenges haven't been resolved, and the needs for new action is obvious. The board and the administration are working intensely to solve these problems and to remain at the forefront. Eldar will go into details about what this implies in practice. Naturally, the 2015 performance was strongly impacted by low oil prices. Consequently, neither return on capital or value creation for our shareholders was satisfactory. Compared with the general situation in the industry, Statoil still delivered a competitive yield over time.
Last year, we delivered a return on capital employed that placed us in the second quartile, where our limited exposure downstream also played an important part relative to our competitors. At the same time, the financial results also show a clear positive trend when it comes to improving operational efficiency, and we are in a position to create value in a recovering market. The work to cut costs continue, and the ambition for 2016 has been raised to $2.5 billion in annual reduced costs compared to 2013. The foundation for new growth and profitable volumes is now laid through the work we do to improve the company's project portfolio. Reduced level of activity and more efficient processes also imply fewer employees, both in Statoil and our suppliers.
This is a demanding time for those affected, for the companies, and for the society. The Board of Directors works to implement these processes without reducing our focus on safety and in alignment with the company's values. Last year's climate agreement in Paris gives us a clear political course and stresses the importance of our industries pitching in and contributing to the transition to a low emission society. Also in accordance with the resolution adopted by last year's general meeting, this year's sustainability report provides further details on how our portfolio will be affected by stricter climate regulation. It shows that Statoil's portfolio is robust also from a climate perspective. Oil and gas will continue to be important energy sources for many decades to come.
At the same time, we increase our investments in renewable energy, and our ambition is to build a profitable material business. In this area, the company has, under the new CEO's leadership, taken some exciting initiatives in 2015. The company will continue to develop this area, and we support this course wholeheartedly. Statoil's financial position is good in an uncertain macroeconomic situation. The board focuses on actually honing and using the freedom of action and flexibility it gives us. Giving priority to profitable investments gives the company the capabilities and the cash flow to be able to pay a competitive profit or return. Similarly, our dividend policy expresses the board's faith in the long-term value creation and the quality of our project portfolio, and these are interlinked and are managed in a responsible financial framework.
The board of directors proposes to pay a dividend of $0.2201 per share for the fourth quarter 2015, unchanged from the third quarter 2015. From the second quarter 2015, the board has determined and published a dividend in U.S. dollars. However, shareholders on Oslo Stock Exchange will receive dividend in Norwegian krone, determined five business days after the Statoil share is traded ex-dividend. Thus, the dividend for the fourth quarter 2015 will be communicated in Norwegian krone on the twenty-third of May. The board considers the dividend policy an important commitment to the company's shareholders, and the dividend policy remains firm. Distribution of quarterly dividends was introduced in 2014 and is an integrated part of the company's dividend policy.
In line with the corresponding authorization granted by last year's general meeting, the board asked this general meeting to authorize payment of quarterly dividends for the period up until the next ordinary general meeting. See item seven. Anchored in the dividend policy, the board of directors also proposed to introduce a two-year scrip dividend program commencing from the fourth quarter 2015, and then reference is made to item eight. The program offers shareholders the option to receive all or part of the quarterly dividends in cash or in newly issued shares in Statoil. The program is envisioned to cover all distribution of dividend until and including the third quarter 2017. The scrip dividend program is expected to strengthen Statoil's financial robustness in a low oil and gas price environment.
This initiative comes then in addition to other measures, such as strict financial discipline and significant efficiency improvements. Similar dividend programs have been implemented by several other comparable companies. Shareholders who have not subscribed for dividend shares at the time of expiry of the subscription will be paid the dividend amount the relevant shareholder is entitled to in cash without any action on his part. For the fourth quarter of 2015, and the first quarter of 2016, the subscription price for each dividend issue shall be determined with a deduction for a 5% discount on the applicable share price. For the other dividend issues, the discount will be determined at the discretion of the board. For the first quarter to the third quarter, the discount may not exceed 10%.
We also recommend that the dividend issue for the fourth quarter of 2015 be approved by this general meeting. Reference is made then to item 8.1. The dividend issues for the three first quarters of 2016 will be resolved by the board and based on the motion proposing that the authorization be granted by the general meeting, see item 8.2. As stated in the notice, it's been a precondition for the board of directors' proposal that Statoil and the Norwegian state, represented by the Ministry of Petroleum and Energy, have entered into a two-year agreement whereby the ministry, first of all, undertakes to vote in favor of the relevant resolutions in the annual general meetings in 2016 and 2017. Secondly, that the ministry has undertaken to participate in the scrip dividend program.
Such agreement has been entered into and received the necessary approval of the Norwegian parliament yesterday. Under this agreement, the Norwegian state will use the part of its quarterly dividend to subscribe for the number of shares that is required to maintain its ownership interest of 67% in Statoil. There were several items that I need to address. Now I will address corporate governance. Statoil's corporate governance is based on transparency and equal treatment of the shareholders. The board's mandate is to create long-term added value for the shareholders, and we are to safeguard the interests of all shareholders, and we are to take into account the company's other stakeholders. The board works to maintain high standards for corporate governance based on the Norwegian and international standards for best practice. This calls for the will to continuously evaluate our efforts and improve their efficiency.
Having the board's agenda focused on the road ahead is key. Again, this requires an increasingly more efficient use of the sub-committees of the board, and the company's nomination committee also invests considerable effort in enhancing the board's expertise and experience because the composition of the board changed considerably in 2015, and a new member was also appointed to the board in March of this year. The board is constantly evaluating the company's management system and control routines to ensure that we run our operations in a responsible, profitable manner. The board had a total of eight ordinary and four extraordinary meetings in 2015, with an average attendance of 95.9%. In addition, in each of the three sub-committees, there was between five and seven meetings.
The members of the board also visited some of Statoil's offices and activities in and outside of Norway. Through such visits, the board seeks to gain more insight into and knowledge about Statoil's technical and commercial activities as well as the company's local organizations. I also said that I would address item nine in my statement, but I won't. I will do that later. I would like to leave you for now by saying that 2015 and the beginning of 2016 have presented the company with demanding challenges, and I wish to thank and commend the company's employees for your effort during particularly these challenging times. I would also like to thank the company's executive management and administration for their very fine cooperation and for all the good work they delivered during the year.
By this, I will now turn the floor to CEO Eldar. Thank you for your attention.
Thank you, Øystein. Dear shareholders, good afternoon. It's good to see you all, and very good to be here today. Let me start in the same way as the chair of the board by expressing our deepest gratitude for all the support and warmth you have shown us since the tragic helicopter accident on twenty-ninth April outside Bergen. I also want to thank and commend everyone who contributed when we needed it so badly, from the search and rescue crews and many, many volunteers to our own contingency organization, and not least all the colleagues who were there for each other, who supported each other across all the companies that are affected in such a fantastic way. For us, two things are paramount now.
First of all, this is of course about looking after the families as well as we can, the families left behind, and then we must find the answer to how this unimaginable tragedy could happen. The Accident Investigation Board have embarked on an inquiry into the accident, and we would of course be willing to put all our resources and expertise at their disposal for this work. Statoil has also decided to start its own inquiry. We are very concerned about bringing to light absolutely all facts and causal connections linked to the incident itself, but also other conditions that may contribute to strengthening our work with helicopter safety.
We owe this to the families left behind, and it's also completely crucial for all the people who every day go to and from their work offshore that they can have confidence in us doing everything we can to safeguard them. Last Monday, I visited Gullfaks B, the platform in the North Sea, and it was a good meeting with very strong stories, but also very strong solidarity. One thing they told me was how they had decided to restart production last Sunday afternoon. After having had a commemorative gathering for their colleagues, it felt good to start work again. I feel that tells us much. It speaks volumes about the pride people have in this incredibly important job they are doing.
Before I continue, I need to mention another tragic incident on April 21, where an employee of a subcontractor of Samsung in one of the new building projects in South Korea got a very serious cut injury, and we later were told that unfortunately they were unable to save him. This incident will of course be investigated both by the subcontractor and Samsung, and Statoil will contribute to the inquiry by Samsung. In my speech today, I'll tell you about our results for 2015 and the work we're doing now to equip Statoil for new activity. As the chairman of the board told you, last year was characterized by a drop in prices, reduced activity, and great uncertainty in the markets and volatility in the market.
This year also started with low prices, very low prices, and the situation continues and affects our results, Statoil's results, our suppliers, and Norwegian economy in general. The short-term picture is still very challenging, even if we see a few signs of improvement in the market. At the same time, this is our opportunity actually, in many ways, a unique possibility of making changes that will make its contribution to strengthening us after this downturn as an industry. If we are to succeed in this, we need to think along new lines and differently in many areas. We have been long embarked on this task. We work to reduce our costs by becoming more efficient, which gives rise to new and profitable investments. Let me briefly comment on our market philosophy.
The best cure for low oil prices is in many ways actually that very thing, low oil prices. From a period of heavy overproduction, we now see the signs of the physical oil market being headed towards a balance between supply and demand. The combination of low prices and high uncertainty has also made our industry postpone many new projects. As a consequence of this, considerable new capacity we planned on earlier will not come on stream when the world needs it again. We believe that this circumstance, coupled with increased demand as a result of the low prices, will gradually contribute to a price increase. The cyclic nature of our industry does still apply actually. To the results from 2015, let me start by stressing the significance of safety and security, which is a basic prerequisite of everything we do.
Unfortunately, Statoil had incidents in 2015 as well. Tragic accidents where three employees of our suppliers lost their lives at work for Statoil. One of these was on a Norwegian shelf when a wave hit the rig, COSL Innovator, on 30th December. The other two were traffic accidents in the United States. Three serious tragic incidents that underscore our complex and composite risk scenario in our activities, but also underscores how important it is to continually focus on improving our safety. One area we are focused on, in particular, is linked to hydrocarbon leaks. This is the most serious of these, which also had the potential for a major accident, was at the Gudrun platform on 18th February last year.
All these incidents have been investigated or will be investigated, and we want to learn as much from them as we can. To look at the overall underlying development for serious incidents and personal injuries, all in all over time, the trend has been positive over the last five years. Let's bear that in mind, but it's still my attitude that safety work is something that is never done. We can never be satisfied. Each incident that we register must contribute to making us safe and making us better for the future. The net adjusted operating profit for 2015 was NOK 77 billion against NOK 136 billion in 2014. I think this is the last time I'll talk about Norwegian kroner here.
This reduction is mostly because of the lower oil and gas prices, which were partly counteracted by higher refinery margins, better results from the trading activities, and our high production regularity, which is very good. We supplied the so-called organic production growth in 2015. That means it's corrected for transactions. It was at 6% compared with the year before. Throughout the year, we produced 1.971 million barrels of oil equivalents per day. We have worked systematically on increasing the regularity of our operations as part of our improvement project. Compared to 2013, we have halved the unplanned production losses, as we call them. We have managed to maintain this improvement two years in a row now, and that constitutes around 50,000 barrels of extra production every single day.
The organic reserve replacement ratio was 88% for the year, which gives us an average of 110% for the last three years. As for our efficiency and improvement work, the goal for 2016 was to realize $1.7 billion in improvement measured against our cost base in 2013. We have succeeded in reducing the costs faster here than we had actually planned. We reached $1.9 billion in 2015, so we've increased the ambition by 50% to $2.5 billion as the annual effect from 2016. The oil and gas industry is at a crossroads now in many ways. The cost increase and climate change are two of the headlines that challenge us. At the same time, open.
There's new technology and new markets opening to us, and our ambition is for Statoil to be a company that determines and shapes its own future. We don't want to passively await development and adjust, but we want to actively contribute to create the changes we need to supply more sustainable energy to a growing population. Based on this, we have presented three clear expectations to our organization. First of all, to be a competitive and profitable company at all times. We continue to see great fluctuations in the oil prices in the market, and we experience great uncertainty about future price trends. Statoil must be equipped to tolerate such fluctuations, and we must be prepared for this kind of uncertainty.
It means that we can't operate the company based on what we believe the average oil price will be, but we need to be able to handle the upturns and the downturns. To get to that stage, we need safe and efficient operations. For us, the improvement work is important. It needs to support these safe operations and contribute to higher regularity. The next stage is about moving from an improvement program to an improvement culture, and we have come a long way towards that goal. Methods to run continual improvement projects is one example of this, and we are now putting this to use in a systematic way in ever greater parts of our activities. Secondly, we must change the way we work in the oil and gas industry.
If we are to pave the way for new activities, we need to turn the cost trends around. Again, we've come a long way towards this. If you look at Statoil's own operated project portfolio, which is in front of us or in future, since 2013, we've been able to reduce what we call the breakeven price, the oil price that's necessary to create a profitable project, with this portfolio from $70 to around $40 a barrel. By spending a little more time, and by spending that time on challenging our solutions all the way from reservoir, from the underground to the market, we have succeeded in reducing costs considerably. That means that many new projects like Johan Castberg, also in the Barents Sea too, Peregrino Phase 2, Snorre 2040, and Trestakk, are projects we're able to continue work on now.
Simplification, standardization, industrial philosophy, these are not terms we are known for in the oil and gas industry particularly, and we need to do something about that. At the same time, technology and innovation will still be crucial to find new and smarter solutions. One example is CapEx, the technology that we developed in connection with the 23rd licensing round in the Barents Sea. It's a new and simplified concept. It provides savings around 30% against traditional seabed solutions. Thirdly, Statoil should be an energy supplier in the low emission society of the future as well. Statoil supported the climate talks in Paris actively, and we do support the international treaty they entered into. That agreement staked out a pioneering course, and it's totally crucial to move in the direction we have to move in this world to reduce carbon emissions considerably.
These changes will be demanding for all countries and all industries, but not least the energy sector, which represents around two-thirds of the global carbon emissions all by itself. This also opens up opportunities, and that's why I have made it clear that Statoil must actively drive changes in the direction of a low emission society, and our ambition is to be world leaders on energy efficient and carbon efficient production of oil and gas. In 2015, we set ourselves a goal for a carbon intensity of nine kilograms of carbon per barrel oil equivalence by 2020 for the upstream activity. In 2015, we were around 10 kilograms of carbon per barrel, which is under 60% of the average for the global production, which is at 18 kilograms per barrel.
It was extra gratifying for me to be able to award the CEO's Annual Award for safety, security, and sustainability jointly to what they now call the energy network on the Norwegian Shelf and a program for reducing emissions from our onshore activity in the United States. Both of the award laureates have contributed to considerable carbon reductions and reduced methane emissions. At the same time, we will gradually develop a profitable business in renewables based on an industrial perspective and on our oil and gas competence. Last year, we set up Nye energiløsninger, New Energy Solutions, as a separate business area.
As you've seen, I'm sure, we have already started with investment decisions for Hywind Scotland, the world's first submersible offshore wind turbine park, and recent news about our partnership with E.ON about Arkona Becken Süd-Ost, one of the largest wind turbine developments at sea in Europe. Dear shareholders, we work and we invest in a long-term, very long-term industry. When I started working for Statoil 35 years ago, we were 534 employees in the company, and you can just guess how many we are now. We were not the operator of a single barrel of anything, and we were in the red for seven years. To tell you the truth, many people weren't quite sure we knew what we were doing at all at the time.
I want to say that the energy and the enthusiasm displayed in that organization was incredible at that time. Everyone realized they were creating something new and exciting. Let me tell you that right now I feel something of the same when I go around in the organization, and I want to pay tribute to the organization and praise our organization for the way they handle the challenges we are faced within our industry now and as a company. I am impressed, and I'm proud, and I'm humble too to be part of this highly qualified organization. When the challenges are at their peak, then we see Statoil at its peak in, and we need that now. Thank you for your attention. All right. Thank you, Chair of the Board and CEO for the time being.
Before we open the floor for comments on items six, seven, and eight, I would like to make a few correction. There were two figures that were actually swapped from what I read, and I will read the correct figures. 119 people eligible to cast votes have met, and altogether they represent 75 point something% of the company's share capital. 70.94% of this represent their own shares, while 5.85% represent proxies, and votes cast represent in advance.
0.01.
Represent 0.01% of the share capital. All right. We will now open the floor for comments. Like I said earlier, we also need to pay attention to time constraint. You have,
Three minutes, and you need to step up to the rostrum, and you also need to introduce yourself. Those who present their own proposals have five minutes. All right, we are addressing items six, seven, and eight. All right, sir, like I said, by way of introduction, we will have responses on an issue-by-issue. First, we will have everyone who would like to take the floor, and then CEO and Chair will come back and respond.
All right, Bjørn Asle Teige is my name. I am a small shareholder, but I'm also an employee of Statoil and also a trade union rep. I spoke yesterday on the subject of a dividend. I wanted to reduce dividends by 50%. All right, I didn't get any support. I got some million shares.
Even though I and some along with me felt that the time had come to do something about it. This year, Statoil has asked us to subscribe for new shares instead of dividends, and that was an important element in the dividend policy. I would like to recommend everyone in attendance to support the proposal, and I would also like to recommend everyone to opt to subscribe for shares instead of cash when you have the options. This is going to be applicable for eight quarters going forward, and this means that we can spend NOK 45-50 billion that we could spend wisely on investments.
It could also give Statoil the opportunity to get a strong footing to take an important position in the market that will also make it able to pay dividend for many years to come. We have many colleagues who work for suppliers and contractors that need good projects, and therefore, we hope that quickly there will be new projects that we can actually get up and running so that we can get new products and services on the table. Thank you.
All right. Are there any other people who would like to speak? There's one over there. Yes, you have been invited. We are dealing with item six, seven, and eight.
Thank you. Dear general meeting, my name is Truls Gulowsen. I am head of Greenpeace in Norway. We have four shares.
I have attended general meetings for many years, and I'm happy to be back. After having Mr. Sætre's report, it is very positive to see how Statoil is now developing the investment in renewables as new business area, investing both in resources, money, people and money. We don't have a special proposal to table this, but we would like to follow up the climate stress testing as the general meeting also adopted last year. We have seen from the documents that the company has followed up to a certain degree, but we have some questions. We are specifically surprised that new ventures do not seem to have been subject to stress testing. It seems as if you have evaluated the present portfolio to be rather climate-robust. It is not a big surprise, but new ventures do not seem to have been subject to such stress testing.
We have two main questions and then two follow-up questions. Firstly, the Paris Agreement that Mr. Sætre also mentioned is breaking new ground and has also set new targets for what the world is to achieve. It's not only to reduce the maximum global warming down to 2%, but rather down to 1.5%. The analysis that has been presented focus on 2%, but there is a carbon budget that open up for a 50% probability that we will achieve this target. What about the Paris Agreement vis-à-vis Statoil's targets? You also say in your analysis that Statoil works to find the most competitive barrels. At the same time, they don't distinguish between existing production in the North Sea and elsewhere, and also about future ventures.
We're then talking about, for instance, the Arctic Sea and New Zealand. How does Statoil consider that really costly exploration activities in some of the most inaccessible areas around the globe is competitive, compatible with low risk? In Australia, for instance, there was a colleague of mine who will probably speak more about this later, is virgin acreage so far hasn't been opened up, and there's also great biological diversity. It's far away from existing infrastructure. How have you been able to assess those opportunities vis-à-vis a 2%-1.5% climate target? We also know that Statoil has applied for many possible license acreages in the Barents Sea, far away from the onshore areas. Would this be the most competitive barrel also vis-à-vis the climate target? Have you made such an analysis?
Shell has already withdrawn and pulled out of the 23rd licensing round, and we encourage Statoil to do the same thing. There's no reason to waste the time and money to invest in resources that should really never be recovered. I would like the general meeting, and also everyone else, to believe that there is a possible climate litigation action pending to see if the 23rd licensing round is lawful from a climate perspective and also considering the Norwegian constitution, especially against the backdrop of the Paris Agreement that we've now signed. We hope that that will be an additional reason for why you will evaluate your participation in the 23rd licensing round. Apart from this, we would like to wish you the best of luck with the adjustments to the low-carbon society.
None of us would like to close all the faucets going forward, but we would like to spend money wisely when it comes to future ventures. Would anyone else like to take the floor?
Chamberlain. I'm here today as a representative of The Wilderness Society, Australia's largest and best-known environmental advocacy organization. I'm an Australian citizen and a long way from my home country. I've come to raise a question of grave concern about the BP Great Australian Bight deepwater drilling project in which Statoil is a non-operational joint venture partner with a 30% stake. This BP-Statoil deepwater project has attracted considerable opposition and is now the subject of a public inquiry by the powerful Australian Senate. The social license underpinning this project is also under heavy scrutiny from a wide and diverse range of stakeholders, including Australian indigenous communities, Australian and international environmental organizations, local councils, a multi-million dollar fishing industry, a billion-dollar tourism industry, as well as tens of thousands of individual citizens stating their opposition. This growing hostility puts Statoil's reputation on the line.
The controversy surrounding this project relates to a number of concerns. These include its location in a pristine marine environment of global conservation significance, a true marine wilderness where 85% of species are found nowhere else on Earth. The clear and present risk of an oil spill like the Deepwater Horizon is terrifying to Australians. Also worrying is the veil of secrecy surrounding the proposal with a number of critical documents not publicly released, including full scenario planning in respect to a possible oil spill. Further, the exploration for oil in a frontier province is incompatible with effective climate action and seems particularly ill-judged post-COP21, where governments vowed to limit temperature rises to well below two degrees. Analysis suggests that we cannot burn the majority of proven oil reserves, let alone those in unproven frontier territories like The Bight.
Statoil's stated support for COP21 sits in stark contrast with its involvement in this project. Statoil is welcome to invest in renewable energy in Australia. This is the wrong project in the wrong place at the wrong time. With risks of a catastrophic oil spill in a pristine marine environment, stranded assets, and loss of its reputation, my question is how Statoil believes this is a project the company should be involved in. Thank you.
Takk. Are there any more hands showing that anyone wants the floor? No? Then I only want to say that we close the list of speakers on the six, seven, and eight now, and we continue dealing with this after the chairman of the board and the CEO have answered the questions. Go ahead. Maybe I should start about the first thing from Bjørn Asle. I will comment on that briefly, and then Eldar, the CEO, will take the questions from Greenpeace and Mr. Chamberlain. All I can add to what Bjørn Asle said is that the scrip dividend program is expected to make Statoil more robust in a period with low oil and gas prices, as I said to begin with in my intervention.
This measure comes on top of other interventions like financial discipline, strict financial discipline, and efficiency programs that we have been through in Statoil. I can only endorse your comment, and thank you for your comment. Right. This is to the question raised by Greenpeace. I'll try to be brief. There were many elements here. They commented, I commented on the Paris Agreement and the significance of it. There's no doubt that our industry is very important here, and that I wanted to be targeted to do our part to face these challenges linked to how we produce oil and gas, and also increasingly within renewables. The sustainability report, it took some steps this year.
As you touched on, we have now shown and calculated how the value trends in the company will be affected by the 2-degree scenario, and we have used IEA's 2-degree scenario as a starting point in order to make these calculations. We see a loss of value of 5% on our portfolio that we possess as per today. How this will pan out next year, it's a bit too early to say. We've started the work and the process around next year's report. Last year, there was a resolution by this AGM that shows us the way as to how to develop our reporting. As for the 1.5 scenario, all I can say so far is that there's no consistent scenario that we have developed in relation to that, but we will consider it in the next report.
It's true, we have a very clear view that it's pointless to stress test the separate assets in relation to this kind of scenario. It only works for the portfolio really. The best possibilities of exploration, for instance, that's an example of our new activities. We look for good possibilities for exploration in many places, and the location has very little to do with that actually, surprisingly. It's the quality of what we find, the size of what we find, the way the reservoirs look, the quality of the oil and gas. That's much, much more significant for profitability than distances and other geographical data, as was mentioned. For instance, the depth of the sea or the water. You only find things out by drilling. Of course, we assess it carefully, but we don't do that kind of stress test for single assets.
We do look into it carefully and assess the carbon cost when we look at exploration prospects that we are considering. This is the comment on the question about most competitive barrels. There's a lot of oil and gas that won't be found, or it'll be found, but it won't be profitable. The answer to that, which barrels, where they are, we can't have the answer until we have surveyed the resources and understand them. Then you often have to explore and in order to get the answers you need. The 23rd licensing round is important. It's the first possibility we have of carrying out exploration in new areas since 1994, which is 20 years or more ago. That's a crucial opportunity.
We are convinced that there are good exploration opportunities there, and if we make the discoveries we want to, this can be a basis for profitable operations. We have shown that we can do a lot about our costs illustrated by the improvements on the Johan Castberg project. I mentioned in my speech the CapEx technology that improves and cuts costs, and we cooperate 15 companies in the Barents Sea region to handle all kinds of challenges in this area from logistics to safety. We feel that there is a basis for a profitable development there if we find the resources we hope to discover there. The problem about stress testing these resources, I've already commented on.
As for this potential litigation, I don't think I can say anything except that we relate to Norwegian authorities, and any issues about this must be raised with Norwegian authorities. There is a broad majority in parliament that are in favor of opening this in this round for exploration. Australia, briefly. Well, we certainly agree that there are many challenges, the depth of the sea, the distances. My answer is, as I said before, that we don't have the answer to this, not even in a climate perspective, until we have made discoveries, if any. What we can do is we can relate to the desire by Australian authorities that they actually opened up these areas, this acreage, and made it available to our companies.
We will be safe in our operations, and we will do what's appropriate for the environment, and people there will be responsible and avoid unwanted consequences and unacceptable consequences. Let me add that I view BP as a good operator. They have a lot of experience with this kind of drilling in this kind of area, and they know how to handle the environment in a responsible way. Thank you. We move on through the agenda. I ask the auditor to come up. It's Mona Larsen, and she will read excerpts from the auditor's report for 2015. That is item six. Thank you, Olaug. Yes, dear annual general meeting. I am the lead partner in KPMG with responsibility for auditing Statoil ASA. As Statoil's elected auditor, we have submitted our auditor's report for 2015.
The full report is in the annual report, so I'll only read a short version. The auditor's report has two parts. Part one is the opinion regarding the financial statements. Part two is the opinion regarding other matters. I will now review the main features of these two parts. Part one, the statement regarding the financial statement consists of the following components, the board of directors and chief executive officer's responsibility for the financial statements, the auditor's responsibility, opinion on the separate financial statements, where we confirm that the parent company's annual accounts are in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway. Opinion on the consolidated financial statements, where we confirm that the consolidated annual accounts are compliant with the International Financial Reporting Standards as adopted by the EU.
Part two, the report on the other legal and regulatory requirements, and also our opinion on corporate governance and the board of directors' report, which are, in our opinion, consistent with the financial statements and in compliance with legislation and regulations. Opinion on accounting registration and documentation, where we state that the management has fulfilled its duty to produce a proper and clearly set out registration and documentation of the company's accounting information in accordance with the law and bookkeeping standards and practices generally accepted in Norway. This is a so-called clean report that was signed by the undersigned and Global Lead Partner Jimmy Dabou on 9 March 2016.
Now that we are going through the annual accounts and the financial statements for 2015, the corporate assembly have an opinion on the board of directors' motion, and I will read this as chair of the corporate assembly. At its meeting on 17 March 2016, corporate assembly reviewed the financial statements for 2015 for Statoil ASA and the Statoil Group and the board's proposal for the allocation of the profit for the year. The corporate assembly supports the board's proposal for the financial statements and the allocation of the profit. The general meeting is encouraged to adopt the board's proposal for the financial statements for 2015, an allocation of proposed dividend, and the board of directors' report. The dividend was for the fourth quarter of 2015.
If the scrip dividend program under item eight is adopted, the expected distribution date of cash dividend is expected to be around twenty-fourth June this year, and the expected date of payment for dividend in U.S. dollars under the ADR program around the twenty-ninth June, 2016. If the scrip dividend program is not adopted by the AGM, the disbursement of dividend will be in cash and earlier than outlined above. The date will be communicated in advance. My question is, can the AGM endorse the motion on the screen regarding item six? No objections, and the motion is carried. We go to item seven, which authorization to distribute dividends based on the approved financial statements for 2015. The motion is on the screen. We will not read it aloud.
The question is, again, whether the AGM can support the motion as proposed. No one against, so the board of directors' motion is carried. We come to item eight, introduction of a two-year scrip dividend program.
The chairman of the board has explained this motion, and we ask the AGM to take a stand on A1, which is about increasing capital when you issue new shares and the dividend to be paid for the fourth quarter. A2, where they ask for an authorization for the board of directors to increase the share capital in connection with payment of dividend for the first quarter to third quarter 2016. The question is whether you can support that motion? No objections. That's also carried. That brings us to six. That means that six, seven, and eight have been carried. We move to item nine, which is submitted by a shareholder. We will get that on the screen. I give the floor to the shareholder who actually submitted that motion.
Will you come up and give an account of your motion? You have five minutes.
In 2015 was a change of paradigms for the international oil and gas industry. The oil price sank to a historic low, and there was a summit in Paris where they limited the global warming to 1.5 degrees. The Norwegian Grandparents' Climate Campaign points out that Statoil is one of 40 companies that today, directly and indirectly, represent one-third of the greenhouse gas emissions. Statoil alone is accountable for almost 300 million tons of greenhouse gases, or five times as much as the total Norwegian greenhouse gas emissions. Therefore, Statoil must take more of the responsibility for a reduction of the national and global greenhouse gas emissions.
It may seem as if the board have realized part of the seriousness by setting up the new, energy solutions business and energy ventures to develop a business investment in renewable energy. For instance, the wind turbine park at sea, and this is important, but not enough to cut emissions, especially not when Statoil, at the same time, want a new impact study for oil activities in the waters of one of the largest fisheries resources in the world, the Lofoten Archipelago with Vesterålen and Senja. It's the fish from these waters that will support us now that the oil age is coming to an end, and it's disappointing that the board stick to their guns when it comes to vulnerable production of very polluting oil from tar sand in Alberta, Canada.
Let's hope that the forest fires in that area don't set fire to these huge potential flares. I and the Besteforeldrenes klimaaksjon ask for your support for the following motion. The board presents a revised strategy reflecting the company's joint responsibility for helping meet the current energy demand within the framework of national and international climate targets. The board should, in this context, consider the opportunities and consequences of the following relevant sub-strategies. One, withdraw the company from polluting and unprofitable ventures such as tar sand in Canada and fracking in the USA. Two, terminate exploration for new oil and gas sources nationally and globally, including New Zealand. Three, increase the focus on New Energy Solutions with a triplication of planned investments in renewable energy annually from NOK 1.7 billion-NOK 5.1 billion by 2024.
The result of the strategy work will be presented in the annual report for 2016-2017. Thank you.
I will now give the floor to Chair of the Board. All right. Let me briefly summarize the board's response to this item nine. Exploration, production, transportation, refining, and marketing of petroleum is defined as the company's primary objective pursuant to article one of the Articles of Association. Climate change represents one of the greatest challenges of our time, and Statoil fully recognizes the need for the oil and gas industry's contributions with action and emissions reductions to limit global warming. The company's ambition is to remain one of the world's most carbon-efficient oil and gas producers, as we also heard mentioned. In parallel, we further develop a profitable position within renewable energy so that we can continue to create value for our shareholders in a sustainable way. In the past year, Statoil has established new reduction targets for Statoil's emissions in the company's operation and value chain.
We are involved in technology development and industrial cooperation aimed at helping reduce emissions. Changing the world's energy system in order to meet the growing global energy demand in a more sustainable way is naturally a massive challenge. Significant renewable energy investments are required, but at the same time, there will, even in a low carbon society, be a substantial need for oil and gas for several decades. Statoil finds it important that this is done in a sustainable way, including gas replacing coal and energy consumption and carbon emissions being minimized in the production processes. Furthermore, the board stresses the importance of complying with the principles of good corporate governance, which state that the company's strategy is to be determined by the board. Based on this, the board of directors recommends at the annual general meeting to vote against the proposal. All right.
We will now open for questions and comments. Would anyone like to speak?
Hello. My name is Liva. I'm happy to be here. Are you doing fine? Good. I have come here to tell you a story about you. We need to go back to the 1990s, the big era of the CD. If you're going to listen to music, I mean, it was all about the CDs. You remember these wonderful, shiny, round, compact discs that you put in your player, and all the music came. I Will Always Love You, Pressure, Test Dance, Absolute Music, 7, 8, 9, 10 or whatever. Every year, under the Christmas tree, you would get piles of CDs. Of course, I mean, you could see it when you saw the parcel. That of course, it was a dead giveaway, but, I mean, you loved it.
Of course, the record companies and the stores were so happy every single December because they had the product everyone wanted. The CD was valuable, and you needed to take good care of it, because if you didn't, then you would have scratches. It could be that Whitney never moved on. I will always. Not to mention what noise you would hear and what disturbances it would create if you didn't put the right CD in the right cover. I see people nodding. You recognize the situation. Gradually, the picture started to change. Better solutions emerged, simpler, better solutions for the consumer, namely streaming. This was embraced by everyone, with one exception, the music industry itself. They stuck to their guns.
They wanted the physical format, and they wouldn't budge, they wouldn't move, and they were not keeping up with the times. Today, there has never been as many electric vehicles on the roads as today, and that is one of the signs that oil will not be the energy source of the future. We will soon have a new CD, and we will have a new industry such as the music industry. I'm quite sure that the solution is to be found in this hall. You need to be the Spotify of the music. You need to be a leading energy company, not primarily an oil and gas company. All right, maybe Norway has the cleanest oil production, but oil is dirty regardless of how you burn it, and that produces what we call carbon.
If we are to reach the two-degree target, then oil needs to stay in the ground. Actually, I shouldn't really have to be standing here to ask you to renew your act. You should work every single day to renew your future options and not to forget the world's future options. Thank you very much. If you want to give a round of applause, this is the time.
Are there any other questions? Any other comments?
Hello, dear general meeting. I haven't prepared an intervention, but I see that when people start the debate. My name is Jan Eggum Sunde. I am also representing the Liberal Party and the city council. I haven't brought any radical proposals, but I feel a need to say as follows.
The proposals that are submitted here, the motions in item nine, actually, are in conflict with the resolutions that Statoil can be made at this Norwegian parliament that actually adopt the energy policy in Norway. Having said that, I also share the intention. I share the concern of all the environmentalists who speak from this rostrum. I believe that the CEO has really taken this on board, and I also note the sincere desire to contribute to the way they should. They are not the parliament. They should not actually implement policy. Having said that, I also think that item three is an excellent motion. It is highly related to the renewables ventures in Statoil, and it will probably help to contribute towards a better position.
You know, a threefold increase is something I would like to see. Thank you.
All right. Should we move to? Can we then do a trial vote? I'm looking at the person responsible to see how we should go about this. All right. There is a request for a written vote, and the DNB is ready to do that. You see item nine up displayed on the screen. You have also had ballots. Here you need to tick off by using ballot slip A for this ballot. Here, it is important to mention that ballots with abstention box has been ticked off, and ballots incorrectly completed with more than one box ticked off will not be tallied and will not be counted among the number of votes cast.
The tallying will take place in a separate room under the supervision of the external auditor. In addition to this, the electronic votes cast in advance will naturally be included in the results of the vote. If you vote in favor of the shareholders' motion, you vote for the motion. If you support the board's recommendation as the chair accounted for, you need to vote against the motion. Have you understood? All right. We will then adjourn for a couple of minutes while the DNB collects the ballots, and then we will continue to deal with the other items after we are through. Has everyone cast their votes? That seems to be the case. All right, we will continue to deal with item ten, the Board of Directors' Report on Corporate Governance.
Of course, this should be in line with pursuant to Section 5-6 of the Public Limited Liability Companies Act. The general meeting shall review and consider the board's report on corporate governance submitted in compliance with 3-3-B of the Accounting Act, and the statement has been made available on Statoil's website prior to the AGM. The general meeting should here carry out an advisory vote regarding the report. The board proposes that the general meeting endorses the report. Here I make reference to the chair of the board's comments to the report earlier under item six when he made his report. The question is if there are any comments to the report. That is not the case. The general meeting has hereby endorsed the board's report.
Let's move to item 11, the Board of Directors' Statement on Stipulation of Salary and Other Remuneration for Executive Management. The board is to prepare a statement regarding the stipulation of salary and other remuneration for executive management, and the full statement is available on the company's website and is also referred to in notes to the annual financial statements. I now give the floor to the Chair of the Board. Through the statement on executive remuneration and other employment terms for Statoil's Corporate Executive Committee, the board of directors has submitted the report on the company's remuneration policy, the formal decision-making process, and the overall remuneration concept for the executive management. In 2015, the board decided to introduce several new elements in the company's executive compensation concept.
The revised governmental guidelines on executive remuneration as of thirteenth February 2015 entailed adjustments with impact on the company's executive remuneration concept, resulting in changes to the pension system and the long-term incentive scheme. In addition, the company has initiated improvements to strengthen the link between executive remuneration and the company's overall performance and results. One of the changes for 2016 is a proposal to introduce a performance modifier. The relative total shareholder return is recommended as one of the criteria recommended in the company modifier, and thus the case is submitted to the annual general meeting for approval pursuant to the provisions in the Public Limited Liability Companies Act. To strengthen the link between the company's overall financial results and the executive remuneration, the board recommends that the general meeting approves the introduction of such a performance modifier.
In addition to this, the board has decided to introduce a cap on 12G, which is the base amount in the Norwegian National Insurance Scheme for pension contribution, and is a follow-up for the revised governmental guidelines. This change has an impact on members of the Corporate Executive Committee appointed after 13th of February 2015, and a cash compensation scheme has been set up in lieu of pension contribution for those affected by the change. Another important change is the introduction of a threshold for variable pay. Payment of variable pay will be dependent on the group's adjusted net profit after tax. For further details, you can see the statement on the executive salary and other remuneration. Apart from this, the company's established compensation principle and concepts will, by and large, be continued in the same form as the general meeting has previously supported.
Effective from 2015, the company has also introduced a defined contribution scheme as its new general pension scheme. With the exception of employees with less than 15 years left to retirement, all employees are transferred to the new plan, and employees exempted from the transfer will retain the defined benefit plan. Effective from February 4, 2015, Statoil's board of directors appointed Eldar Sætre as the new President and CEO of Statoil. The chief executive officer's base salary is NOK 5.7 million with an additional fixed remuneration element of NOK 2 million. Only the base salary is included in the pensionable income. The board chose this model to limit the increase in the company's long-term pension commitments for the position of CEO. Furthermore, the CEO has a variable performance-based salary with a potential of maximum 50% of the total fixed salary.
In its assessment of the CEO's performance and consequently his merit adjustment and annual variable pay for 2015, the board has put emphasis on the solid delivery on cash flow improvement program, CapEx reductions, and TSR, i.e., the total shareholder return. The serious incident frequency has also continued to improve from 2014, and on this basis, the CEO's performance-based salary for 2015 was set at 31.25% of fixed salary, totaling NOK 3,128,125. The CEO will also participate in the company's long-term incentive scheme, the LTI, for 2016. For the CEO, the LTI scheme amounts to 30% of fixed remuneration, and the program includes an obligation to invest in Statoil shares with a lock-in period of three years.
The grant of LTI for 2016 in Statoil was reduced by 50% as a result of the introduction of a threshold value. The board of directors deems it important to offer executive compensation that is competitive in the markets we operate. Executive compensation should also be seen as fair, and it should be aligned with overall compensation levels in the company and with the shareholders' interests. The board must strike this balance, and this is our responsibility. In this context, shareholder guidance is relevant, which encourages the board to carefully consider both compensation incentives and levels, but avoid increasing details and complexity that may limit the board's ability to ensure competitive compensation and employment terms. Statoil's board of directors is guided by clear goals relating to executive compensation, transparent, fair, competitive, but not market-leading.
The board is of the firm belief that the remuneration systems and practices are transparent and that deviations are explained in the statement in accordance with prevailing guidelines and good corporate governance. Thank you.
According to the Public Limited Liability Companies Act, the general meeting shall firstly consider the board's statement on stipulation of salary and other remuneration for executive management in 2015. Let me point out that the board's declaration on stipulation of salary and other remuneration has been presented and considered by the AGM, and there will be no vote taken on this. Secondly, there should be an advisory vote on the board's declaration for the financial year 2016. This year-
Thirdly, the act also requires that the part of the declaration that concerns remuneration linked to share price trends in the company must be approved by the AGM. The question is, are there any comments on the declaration, and does the AGM want a separate consideration of the two parts of the proposal, or can you approve the motion proposed on the screen? Agreement on this, I see. That has been carried. We come to item 12, approval of remuneration for the company's external auditor for 2015. We ask the general meeting to approve the auditing fees for Statoil ASA for 2015. It's proposed that the auditor's fee for auditing services will be NOK 6,839,366. Can that be adopted by the AGM? It looks like it. That's been carried.
Now we come to the elections for the corporate assembly. Now, the period or the term of office expired for all shareholder elected members of the corporate assembly this year. As chair of the nomination committee, I will now review the roster of nominees. The nomination committee has attached importance to several criteria in its composition of the corporate assembly, including diversity of expertise and background, a gender balance, and consideration for bringing in new blood compared with the need for continuity. The nomination committee has written to the largest shareholders in Statoil asking for nominees for positions, and an electronic letterbox for proposals was also set up on Statoil's website, where the shareholders can make proposals. The nomination committee's motions for new members can be seen on the screen. I will not read that out loud.
I want to mention and highlight that the nomination committee nominates three new candidates as members of the corporate assembly and three new candidates as deputy members. Let's go back one slide. The other members of the corporate assembly are nominated for re-election. You see that in bold, some changes I want to comment on. Because we have, in addition to new members, we also want to elect a new chair of the corporate assembly and a new deputy chair. This election will be made by the corporate assembly itself. We suggest that Tone Lunde Bakker is nominated for re-election to the corporate assembly. She's also nominated for the position of new chair of the corporate assembly when the corporate assembly is to elect its chair and deputy chair in June. Then we have the three.
Oh, Tone Lunde Bakker, here's her resume, you can see it here. She worked for Danske Bank. She's been a member of the corporate assembly for 10 years. For two years, I'm sorry. We have the three proposed new members, Nils Bastiansen as the new deputy chair. He's the Executive Director of Equities in Folketrygdfondet, and he's responsible for the funds for a shareholder then. We have Jarle Roth, who has been the CEO of Eksportkreditt now, but he will join Arendals Fossekompani as the new CEO from August. Katrine Ness is the plant manager of the aluminum smelter Alcoa at Mosjøen and has MBA background. We have a deputy member, Birgitte Ringstad Vartdal, an existing deputy member, is nominated to become a new member. We have three nominees for positions as new deputy members.
Kjerstin Fyllingen, she's now the CEO at a hospital in Bergen, Haraldsplass Diakonale Sykehus. She has a background in insurance and finance. We have Håkon Volldal, who is the EVP for business area Collection Solutions in the Tomra Systems ASA and has a graduate civil engineer background. Kari Skeidsvoll Moe is the General Counsel of TrønderEnergi AS. There's more information about all of the candidates on the website of Statoil, where you have the roster of nominees on Statoil's webpage. We have, of course, assessed the candidates, and in our view, all are independent of the board of directors and the day-to-day management of Statoil. We propose that the election of members and deputy members of the corporate assembly take effect from twelfth May 2016 and up to the annual general meeting in 2018 for two years.
You see an overview of the new Corporate Assembly as from 12th May 2016. Is this supported, this motion under item 14? Yes. The election has been carried out.
We will have another election of members to the nomination committee. The term of office for all members of the nomination committee expires this year too. As chair of the nomination committee, I will now explain the nomination committee's roster of nominees. In accordance with the company's articles of association, the nomination shall consist of four members who will either be shareholders or representatives of shareholders and will be independent of the board and the day-to-day management. The chair of the nomination committee and one other member shall be elected from among the shareholder-elected members of the corporate assembly. The nomination committee has also designed several criteria, in its composition, including shareholder representation, diversity of expertise and background, a gender balance, and consideration for renewal compared with the need for continuity.
Here we have also written to the largest shareholders, the 20 largest, asking for nominees for positions and proposals, including nominees, and it has also been possible to submit proposals on Statoil's website. Here you see the nominees displayed on the screen, and we see that we nominate that Tone Lunde Bakker will be reelected. Also we see some new reelections. Jarle Roth as new member, and also that Tom Rathke be elected. We see that Bjørn Ståle Haavik should be the personal deputy member for Elisabeth Berge from the Ministry of Petroleum. Can the general meeting adopt this? You can. All right. This year we have not any item for adjustment of remunerations for the members.
This year, the nomination committee has chosen not to submit proposals to the general meeting for an adjustment of existing remuneration for members of the corporate assembly and nomination committee. They are then to be unchanged. We will also not submit any proposal to adjust the existing remuneration for members of the boards. This decision has been made in the light of the demanding situation the industry is facing and in light of the company's decision to freeze salaries for its own executive management and for executives or professionals outside of Norway. This is meant for your information, and it's not on the agenda. That is the reason why we have now received the results of the ballot for item 9. Could you please read it out before we move to item 15?
Of 2,441,084,781 votes cast, 5,126,803 voted for the motion, 0.21% of votes cast. That is equivalent to 0.16% of Statoil's total share capital. This means that the motion was defeated under item nine. Of course, all these figures and votes will then be minuted. Next is item 15, the authorization to acquire Statoil shares in the market to continue operation of the share savings plan for employees. Because since 2004, the company has offered a share saving plan for employees of the group. The purpose, of course, is to augment good business culture and encourage loyalty through employees becoming part owners of the company.
More than 80% of all employees in Norway participate in this share savings plan. At the annual general meeting last year, it was decided to authorize the board to acquire shares in the market for this purpose. This authorization expires on the date of this meeting. It is proposed that the general meeting gives the board a new authorization to acquire shares in the market in order to, what you now see on the screen, to continue this share savings plan. It's also been referred to in the notice convening this meeting. The question is then if you can support this motion, so it will then be valid until the next general meeting, but not beyond the thirtieth of June. All right. This is hereby carried.
Next, item sixteen, authorization to acquire Statoil shares in the market for subsequent annulment. The board then request the annual general meeting for authorization to repurchase up to 75 million own shares in the market. That is equivalent to approximately 2.4% of the company's share capital. Of course, such authorization for repurchase of own shares benefit shareholders by the remaining shares representing an increased ownership interest in the company. For a detailed explanation of the background for this motion, I refer to the notice. The motion is displayed on the screen, but I will not read it aloud. The authorization here will also be valid not beyond the thirtieth of June 2017. Can you adopt this and support this motion? All right, hereby carried.
We also have a new item to deal with which we haven't seen for some years. This concerns the marketing instructions for Statoil regarding adjustments. The thing is that on 25th of May 2001, the annual general meeting of Statoil adopted the marketing instruction for Statoil ASA, the marketing instruction, which requires that Statoil is to market oil and gas produced from the state's Direct Financial Interests in the petroleum sector, SDFI, together with its own oil and gas. The overall objective of the marketing arrangement is to maximize the total value of Statoil's petroleum and the state's petroleum and to ensure a fair distribution of the total value generated. We've also seen a need for making certain adjustments to the applicable pricing and allocation principles under the marketing instructions.
The board of directors supported the proposal and recommends that the annual general meeting adopts a decision that the necessary adjustments to the marketing instructions shall be made. These adjustments, as such, will be made by the state represented by the Ministry of Petroleum and Energy, and the Board of Directors will then follow up on the adjustments made. The proposed resolution was distributed with a notice of the meeting and is shown on the screen, so it will not be read aloud. Can the general meeting adopt this proposed resolution? That seems to be the case. The motion is hereby carried. Let's now move to item 18. That is a proposal from a shareholder, and I would ask that you put it up on the screen.
It is a shareholder that has submitted the proposal, and it is evident from the notice, and we show it here, and I will now give the floor to the person, the shareholder submitting the proposal. I would ask that person to step forward to present his proposal. In this case, too, we have agreed that the shareholder will have five minutes to present the motion.
This stage has seen many exciting technical presentations, I can assure you, and I was pleased to be at least part of those technical presentations, so it's a pleasure to be back. My name is Paul Nadeau. I represent Arcadia Investment Partners with regard to this resolution. This is a proposal for a Risk Management and Investigation Committee. The objective of this proposal is to substantially reduce Statoil's risk profile, which is currently one of the industry's highest, which is clearly unacceptable. We can see this from the performance metrics. With 24 deaths occurring over the last four years, clearly Statoil is in the red category. The prevailing low oil price environment that we live in today requires operational and financial discipline. Statoil is unfortunately clearly failing here with reported 96% losses in pre-tax income.
Simply stated, Statoil must change its risk exposure. It cannot proceed with business as usual. The world has changed. Therefore, Arcadia Investment Partners strongly recommends passage of Resolution Eighteen to make major reductions to shareholder risk profiles. The Statoil Board of Directors' response to item eighteen is that the Board of Directors takes allegations of potential misconduct seriously and oversees that these are handled thoroughly. Those are very nice words. Unfortunately, this matter has been continually brought up to the board's attention since November 2010, and it has only been met by silence and inaction. Unfortunately, by its deeds, the Statoil Board of Directors shows that those words are simply not true. The board further states that it cannot see that there is sufficient basis to establish an investigation committee.
However, investigative reporters Beate Sjåfjell and Ole Schelto Helgesen for Upstream Magazine clearly see the evidence with the significant number of well control incidents experienced by the Krakatoa well exploration failure. Jostein Løvås of Dagens Næringsliv also can clearly see the evidence from the estimated NOK 30 billion losses in the Spinnaker asset fiasco. That's right. You heard correctly, NOK 30 billion. Hilde Øvrebekk Lewis and Elisabeth H. Seglem from the Stavanger Aftenblad can also see the evidence in Statoil's technical refusal to apply rigorous statistical analytical guides for risk analysis, and this provides an extremely strong argument for supporting this resolution. In summary, Arcadia Investment Partners strongly recommends a vote for item 18, a proposal to establish a risk analysis investigation committee.
I would like to sincerely thank Arcadia's partners, and also Ove Jonsgård, Advokatfirmaet here in Stavanger, and his legal team for legal and strategic advice. I'd also like to thank Peter Hutton, Vice President for Statoil Shareholder Relations, for his professional handling of this complex and extremely important resolution. Thank you.
Thank you. I give the floor to the Chairman of the Board. Thank you. As Chairman of the Board of Statoil, I want to stress that the board takes all communications about possible blameworthy actions in the company seriously, and we make sure that such communications are handled thoroughly. The company has been in a dialogue with a shareholder who is also a former employee of Statoil to understand the proposal and discuss appropriate processes for assessing the concerns. For the sake of good order, I would like to say that the current and the previous employee that was suggested as being possible members of this committee for the inquiry have said that they haven't been asked about this, and they don't support the motion. The shareholder wanted to maintain his proposal for the AGM.
He also stated that this has been reported to Statoil's ethical helpline. All cases received in the helpline are handled by a committee consisting of a broad group of experts and in accordance with established formal procedures for handling such submissions. Cases submitted through the helpline are reported to the board's Safety, Sustainability and Ethics Committee and the board's Audit Committee. Statoil's procedures for how to handle such concerns follow international recommendations for good corporate governance. On the basis of the above, the board considers it both correct and appropriate that the request is handled in accordance with the established procedures for cases received in the helpline.
In the light of the serious allegations put forward by the person submitting this motion, I want to make it clear that a good understanding of risk is something we give much weight, and assessment of underground risk is, of course, a prerequisite of safe operations. Statoil has an environment that is world-class for underground risk assessment, and in this community there is an ongoing and critical discussion about what is the best way to understand the underground. The administration and the board do not share the perception that is provided here or the allegations that are made. I wouldn't like to enter into a detailed description of this, but I refer to the motion by the board. In our view, there is no basis for setting up a separate investigation committee to look into the circumstances referred to by the shareholder.
Because of this, the board recommends that the AGM vote against the motion. Anyone else wants to take the floor on this? Would you like a vote on this? Do you understand Norwegian? Do you want a ballot on it? I have, yes, but I don't see any hands. Sorry? Okay. Do you want us to conduct a written voting or can we do it by hands? It's okay. Well, we do that then. Absolutely. There will be a written ballot on item 18. We will use B. Again, this item as well, if you would like to support the shareholder's motion, you vote for the motion, and you vote against the motion if you want to follow the board's recommendation. The same way we did it in the last ballot.
They will collect your ballots, ballot slips. There will be just a very short break, and we will tell you when we have the votes. 5 or 10 minutes.
All right, we'll resume our proceedings. If you could please call in the other shareholders. Take their seats, please. Yes. All right, we now have the results of the ballots on item 18. Of 2,440,737,011 votes cast under item 18. 18,892,208 voted for the motion, accounting for 0.77% of the votes cast. This corresponds to 0.59% of Statoil's total share capital. Again, all these data will be available in the minutes that we will publish just after the general meeting. We have now dealt with all the items on the agenda. Like I said, in the near future, the minutes of the general meeting will be published on the company's website.
Please, for those of you who are going to co-sign the minutes, please remember to stay behind. Would anyone like the floor now, finally, before we adjourn? Yes, please. Chair of the Board, Løseth. Dear Olaug Svarva. As chair of the Folketrygdfondet, the National Insurance Fund, she was elected by the fund and other mergers. After the merger was carried out, then she has had these offices. The general meeting has both today, but also earlier, seen how she, with authority, but still with a soft hand, guided us through the meetings. These qualities and characteristics are also very important for us and for the corporate assembly. What many people may not be aware of is, of course, the efforts that she has done in the nomination committee.
Changes in Statoil has also required the development of expertise and competence on the board, and it has been Olaug Svarva's responsibility to maneuver among all these responsibilities until we are where we are, and she has done so with high quality. On behalf of the company shareholders, on behalf of the board of directors, and on behalf of the administration that you cooperated with, I would like to thank you warmly for many years of value creating and also very valuable work. Thank you, Chair, and thank you for your kind words. I would also like to thank the annual general meeting for the trust you have shown me all through almost nine years. I'm not quite sure how to put it. This is a trust that I have greatly appreciated and valued.
Not least, what has been important for me is to develop such close relationship with Statoil, and it has been a privilege to have come so close to a company which is so big and so important for our country. I have seen the amazing culture and the wonderful people that it has among its resources that are also true to their corporate values. We are proud of it. It has been a privilege to work with Statoil, and I am personally very proud of Statoil, and I wish the companies every success in the future. I will still be following their future, but I will do so from a different vantage point than up to now. Thank you very much for your trust. Thank you to the shareholders for attending, and we stand adjourned.