Statoil Iran

Authors: Lane, Henry W.; Wesley, David T.A.
Source: Richard Ivey School of Business
Year: 2009
Company Name: Statoil Iran
Number of pages: 4

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Abstract:

Less than one year after being awarded a contract to develop one of the world's largest offshore petroleum fields, Statoil's future in Iran appeared to be in jeopardy. Statoil was at the center of a corruption investigation that had resulted in the resignations of three of the company's top executives, including its CEO. The issue was alleged bribes paid by Horton Investments, on Statoil's behest, to secure lucrative petroleum development contracts. According to the Iranian government,Statoil used Horton to channel $15 million in secret bribes to unnamed government officials. Statoil's country manager, who had considerable experience in the region and was unaware of the secret deals, is left with the difficult task of trying tosalvage the operation and rebuild the social capital he had established between Statoil and its Iranian counterparts.