IMD-3-1796 © 2006
Boscheck, Ralf
Responding to a demand by IOCs for oil and gas concessions in 1962; the Norwegian federal government was at first reluctant to dedicate resources to a seemingly extremely dangerous endeavor as well as freely dissuaded Norwegian financiers from doing so. The resulting legal structure provided the federal government total control however count on foreign business to carry out expedition and production. In 1970; after oil had actually been discovered and OPEC nations had actually demanded equity involvement; the Norwegian concession system moved to consist of regional material requirements and state involvement with "brought interests" till industrial discoveries were made.
The system of specific applications made sufficient details offered to the Norwegian administration. By 1972; the Storting (nationwide assembly) had actually concurred to "10 oil rules" stressing Norway's nationwide control over all activities related to petroleum resources and the usage of petroleum in brand-new commercial activities and the requirement for one state-owned; one parastatal and one personal nationwide gamer. The Ministry of Industry was charged with effecting legislation and concessions; the Oil Directorate with basic administration and policy; and Statoil with the federal government's industrial interest.
Statoil The Evolution Of The Norwegian Model case study solution
Subjects: Energy; Regulation; Economic Development; Government-Business Relations; Economic Policy
Settings: Norway; Oil and gas; Employees: 25;644; Turnover € 58;012 million in 2005; 1972-2005
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