Norway

EITI Status Satisfactory progress
Joined EITI in 2009
Latest Data From 2016
Latest Validation 2017
Website EITI Norway
Last updated 23 September 2019

Overview

Petroleum activities have been crucial for Norway’s economy for more than 40 years. In 2015, the petroleum sector represented 15% of the country’s GDP. Norway is ranked as the tenth largest oil exporter and the third largest gas producer in the world. In 2013, 1.8 million barrels of crude per day were produced equaling 2% of the world total production.

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Tax and legal framework

The Norwegian state secures a large share of the value creation through taxation of the companies holding licences on the Norwegian Continental Shelf (NCS) and the system known as the State’s Direct Financial Interest (SDFI) in the petroleum industry. In addition, the state holds a 67% majority stake in the largest petroleum company, Statoil.

The petroleum taxation system is based on the rules for ordinary company taxation and are set out in the Petroleum Taxation Act (Act of 13 June 1975 No. 35 relating to the taxation of subsea petroleum deposits, etc). Because of the extraordinary returns on production of petroleum resources, the oil companies are subject to an additional special tax. The current ordinary company tax rate is 25 %, and the special tax rate is 53 %.

The production licence gives a company or a group of companies a monopoly to perform investigations, exploration drilling and recovery of petroleum deposits within the geographical area stated in the licence. The licensees become owners of the petroleum that is produced. A production licence may cover one or more blocks or parts of blocks and regulates the rights and obligations of the participant companies with respect to the authorities.

Production licences are awarded by the Ministry of Petroleum and Energy in numbered licensing rounds for the least explored parts of the shelf (frontier areas), or awards in predefined areas (APA) for mature parts.

Oil & Gas Taxation Norway

Beneficial ownership disclosure

Norway’s 2013 EITI Report provides information about the Norwegian register of shareholders. It also mentions the ongoing discussions related to establishing a public beneficial ownership register.

Transparency of financial flows from extraction of oil and gas is important. Openness contributes to better understanding of the industry and a better factual basis. We need both to make good decisions.
Former Minister of Petroleum Tord Lien

Production

In 2015, Norway produced 227.8 Sm³ o.e. of marketable petroleum. By way of comparison, total production was 216.2 million Sm³ o.e. in 2014 and 264.2 million Sm³ o.e. in 2004. In other words, production in 2015 was about 14 % lower than in the record year 2004 and 5 % higher than in 2014. Production from the Norwegian shelf consists of crude oil and rich gas.

Natural resources

Since production started on the Norwegian continental shelf in the early 1970s, petroleum activities have contributed more than NOK 11 000 billion in current NOK to Norway’s GDP. Yet so far, only 45 % of the estimated recoverable resources on the Norwegian shelf have been produced and sold. Norway's proved hydrocarbon reserves have been in decline over the past decade, although some important discoveries have been made in the past two years.

Commodity

Reserves 

Unit Significance
Oil786million Sm30.5 % of the world's reserves.
Condensate31

million Sm3

 
NGL221

million Sm3

 
Gas1922

million Sm3

 

Sources: Norwegian Petroleum, BP Statistical Review 2014

Norwegian Petroleum: Production

Initializing chart.

Revenue collection

Initializing chart.

Reconciled revenues by company (top 5)

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

Implementation

Timeline

Validation

Norway's second Validation against the Standard commenced on 4 December 2018. Norway was found to have achieved satisfactory progress in implementing the EITI Standard in February 2019. See more on the Board decision, including documentation and reference documents here. Norway's Validation scorecard can be found below.

What is Validation?
Validation schedule
The EITI Standard

Norway's progress by requirement

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EITI Reports and other key documents

Norway Validation 2018

Published Date: 
November, 2018
Publisher: 
EITI

On 27 February 2019, the Board agreed that Norway has made satisfactory progress in implementing the EITI Standard. See Board decision

Timeline of Validation and related materials: 4 December 2018: Second Validation commenced.1 February 2019: Draft assessment was sent to stakeholders [English].Stakeholder Comments & Validation Committee Review7 February 2019:

Read more

2015 Norway EITI Report

Published Date: 
November, 2016
Publisher: 
Norway EITI

This is Norway's eighth EITI Report disclosing cash flows from petroleum activities.

Read more
View all documents related to Norway in our publications library

Contacts

National Coordinator

Gro Anundskaas

Assistant director general, Ministry of Oil and Energy
View profile

International Secretariat