Norway


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Norway is one of the world's major oil and gas exporters; the extractive industries as a whole accounted for 74 percent of exports and 30 percent of government revenues in 2011. The state regulates the sector effectively and has created a competitive environment for operating companies, which include Statoil, a partially state-owned company, as well as private enterprises.


Norway's Performance on the Resource Governance Index

Norway received a "satisfactory" score of 98, ranking 1st out of 58 countries. It performed well on all components.

Rank
(out of 58)
Score
(out of 100)
1 Composite Score 98
1 Institutional & Legal Setting 100
Freedom of information law 100
Comprehensive sector legislation 100
EITI participation 100
Independent licensing process 100
Environmental and social impact assessments required 100
Clarity in revenue collection 100
Comprehensive public sector balance 100
SOC financial reports required 100
Fund rules defined in law 100
Subnational transfer rules defined in law N/A
2 Reporting Practices 97
Licensing process 100
Contracts 100
Environmental and social impact assessments 100
Exploration data 100
Production volumes 100
Production value 67
Primary sources of revenue 100
Secondary sources of revenue 100
Subsidies N/A
Operating company names 100
Comprehensive SOC reports 100
SOC production data 90
SOC revenue data 100
SOC quasi fiscal activities N/A
SOC board of directors 100
Fund rules 100
Comprehensive fund reports 100
Subnational transfer rules N/A
Comprehensive subnational transfer reports N/A
Subnational reporting of transfers N/A
1 Safeguards & Quality Controls 98
Checks on licensing process 100
Checks on budgetary process 100
Quality of government reports 79
Government disclosure of conflicts of interest 100
Quality of SOC reports 100
SOC reports audited 100
SOC use of international accounting standards 100
SOC disclosure of conflicts of interest N/A
Quality of fund reports 100
Fund reports audited 100
Government follows fund rules 100
Checks on fund spending 100
Fund disclosure of conflicts of interest 100
Quality of subnational transfer reports N/A
Government follows subnational transfer rules N/A
1 Enabling Environment 98
Corruption (TI Corruption Perceptions Index & WGI control of corruption) 97
Open Budget (IBP Index) 96
Accountability & democracy (EIU Democracy Index & WGI voice and accountability) 100
Government effectiveness (WGI) 96
Rule of law (WGI) 99
Satisfactory Weak
Partial Failing
To explore all data and compare
scores, use the RGI Data Tool.

Institutional & Legal Setting (Rank: 1st/58, Score: 100/100) learn more

Norway earned a perfect score, the result of a legislative framework designed to create long-lasting benefits to society.

The separate roles of the Petroleum and Energy Ministry, the Petroleum Directorate, and Statoil are clearly defined, and the government has clear rules for managing petroleum income. The Finance Ministry ensures that the state receives all payments from oil companies, which are transferred to a natural resource fund. Expenditures are regulated in order to maintain a sustainable budget and save for future generations. All petroleum revenue, including that of state-owned companies, is included in the public sector balance.

A Freedom of Information Law includes extensive disclosure requirements, and relevant petroleum legislation is easy to access. Environmental and social impact assessments are required before extraction can begin. Norway has been a leader of global transparency initiatives and became an Extractive Industries Transparency Initiative compliant country in 2011.

Reporting Practices (Rank: 2nd/58, Score: 97/100) learn more

With thorough public access to information on the oil and gas sector, Norway received a "satisfactory" score of 97.

Comprehensive information on licenses, including locations, operators, and owners, is made public, and fiscal terms are standardized in Norway's petroleum legislation, leaving no discretion to the Petroleum and Energy Ministry. Environmental and social impact assessments are published online.

Government agencies publish comprehensive information on the industry. The Finance Ministry publishes timely statistics on revenue collection, and the Petroleum and Energy Ministry produces public reports for parliament. The Petroleum Directorate provides comprehensive and timely statistics including data on reserves, export values, investment, production costs, field-by-field production volumes, and disaggregated revenues.

Safeguards & Quality Controls (Rank: 1st/58, Score: 98/100) learn more

Norway's "satisfactory" score of 98 is the product of strict audit requirements and effective checks on petroleum licensing and revenue collection.

Petroleum and Energy Ministry officials are not allowed to deviate from licensing policies defined by legislation, and there is a set process for appealing licensing decisions. Parliament oversees all aspects of the petroleum industry, though lawmakers do not review individual licenses or take part in commercial decisions. Government regulators are independent from state-owned companies, and civil servants are required to disclose potential conflicts of interest.

Independent state auditors review national revenues and the results are reported annually to parliament. Several parliamentary committees are specifically charged with reviewing resource revenues.

Enabling Environment (Rank: 1st/58, Score: 98/100) learn more

Norway was ranked at the top of global measurements of accountability, democracy, and the rule of law.


State-Owned Companies (Rank: 1st/45, Score: 99/100) learn more

Several state-owned companies are active in the extractive industry. The largest is Statoil, which produces 70 percent of all oil and gas from the Norwegian continental shelf. The company is 67 percent state-owned but is subject to commercial regulations and does not participate in policy formulation. As a publicly traded company in Oslo and New York, Statoil must comply with disclosure requirements. It publishes regular audited reports that include comprehensive production data and financial information.

Natural Resource Funds (Rank: 1st/23, Score: 100/100) learn more

All government income from petroleum is deposited in the Government Pension Fund Global, previously known as the Petroleum Fund. The fund consists entirely of resource revenues and the return on its investments. At the end of March 2012 it was valued at $613 billion. The Finance Ministry oversees the fund, with operational management by the central bank. National law clearly defines the rules for deposits, investments, and withdrawals; comprehensive audited reports are published quarterly.

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