Statoil cleared for June float

Statoil will be listed in New York and Oslo

Norway's minority Labour government and opposition parties agreed on Wednesday to sell up to a third of state oil and gas firm Statoil and 21.5% of other state oil and gas assets.

Parliament agreed to the ruling Labour party's plan to sell 15-25% of Statoil in an initial stock market listing, and allow the company to enter alliances with foreign partners which could also take stakes.

The government will retain two-thirds control.

Until Wednesday, political wrangling in parliament has disrupted talks, threatening hopes of a stock market listing for Statoil in June.

"This is a happy day for us," Statoil Chief Executive Olav Fjell told said.

"I think that provided nothing really unexpected happens, we'll be in the market from June. We'll be ready and it will be up to the state to decide whether the market is right or the time is right."

June floatation

The company is to be listed on the Oslo and New York stock exchanges when it is partly privatised in June.

Norway, which is the second biggest exporter of oil after Saudi Arabia about 3.2 million barrels per day.

By the end of this year, the company aims to have sold 24% of the assets it held when the restructuring started in 1998. Costs should have come down by 20% and its workforce will have been reduced by 10% during that period.