The company said the scale down would affect its third-party product trading in Singapore, and that the products department with four employees would be closed.

'The decision will not affect any of our trading activities in crude or gas liquids, the key trading areas for StatoilHydro,' said Mr Jan Karlsen, senior vice-president of the oil trading and supply business cluster in a statement.

'StatoilHydro is committed to fulfilling all existing obligations,' StatoilHydro said.

Product trading will be concentrated around the European refinery assets as well as the company's downstream commitments in Scandinavia and the Baltic states, it said. -- REUTERS