Norway

EITI Status Satisfactory progress

Joined EITI in 2009

Latest Data From 2015

Latest Validation 2018

Last updated 27 February 2019

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.

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
Oil	786	million Sm3	0.5 % of the world's reserves.
Condensate	31	million Sm3
NGL	221	million Sm3
Gas	1922	million Sm3

Sources: Norwegian Petroleum, BP Statistical Review 2014

Norwegian Petroleum: Production

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.

Disaggregated reporting by company and revenue stream.
Comparison with other sources (Norwegian state accounts).
EITI regulation under Petroleum law that mandates EITI reporting and setting timeline.
The EITI Reports are produced by the reconciler using the International Standard on Related Services (ISRS) 4400: "Engagements to Perform Agreed-upon Procedures Regarding Financial Information".
Making the EITI data available in an Excel file and on the government data transparency portal.
The Ministry of Petroleum and Energy issues a publication about the Norwegian petroleum sector every year. It is also available as an app for smartphones and tablets.

Norway's progress by requirement

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: