March 2011
National Oil Companies and Value Creation
Volume III
Data Set
Silvana Tordowith Brandon S. Tracyand Noora Arfaa
W O R L D B A N K P A P E R
National Oil Companies
and Value Creation
Silvana Tordo
with
Brandon S. Tracy and Noora Arfaa
Volume III
Copyright © 2011
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2
Contents
1. China National Offshore Oil Company (China) ................................................................................ 4
2. Ecopetrol S.A. (Colombia) .................................................................................................................. 10
3. Ente Nazionale Idrocarburi S.p.A. (Italy) ......................................................................................... 16
4. Open Joint Stock Company Gazprom (Russia) ................................................................................ 22
5. Gaz de France S.A. (France) ................................................................................................................ 28
6. Kazmunaigaz Exploration and Production (Kazakhstan) .............................................................. 34
7. Oil and Gas Development Corporation Ltd (Pakistan) .................................................................. 40
8. Oil and Natural Gas Corporation Ltd (India) .................................................................................. 46
9. Petróleos de Venezuela, S.A. (Venezuela) ........................................................................................ 52
10. Petróleos Mexicanos S.A. (Mexico) .................................................................................................... 58
11. The Petroleum Oil and Gas Corporation of South Africa (Pty) Limited (South Africa) ............ 64
12. Petróleos Brasileiro S.A. (Brazil) ........................................................................................................ 70
13. Petro China Company Limited (China) ............................................................................................ 76
14. Petroliam Nasional Berhad (Malaysia) ............................................................................................. 82
15. PTT Public Company Limited (Thailand) ........................................................................................ 88
16. Qatar Petroleum (Qatar) ..................................................................................................................... 94
17. Oil Company Rosneft (Russia) ......................................................................................................... 100
18. China Petroleum & Chemical Corporation (China) ...................................................................... 106
19. Sonatrach S.A. (Algeria) .................................................................................................................... 112
20. StatoilHydro ASA. (Norway) ........................................................................................................... 118
3
Acknowledgments
National Oil Companies and Value Creation, Volume III, is part of a
study aimed to explore the determinants of value creation by national
oil companies (NOCs). The study comprises three volumes: volume I
presents the findings of the study, volume II contains detailed case
studies on the NOCs analyzed in the study, and volume III contains the
full dataset and calculation of the value creation indices and value
drivers for each NOC in the study sample. The study was undertaken
and written by Silvana Tordo (lead energy economist – Oil, Gas, and
Mining Policy Division, World Bank), with contributions from Brandon
S. Tracy (econometrician, consultant), and Noora Arfaa (consultant),
both with the Oil, Gas, and Mining Policy Division of the World Bank.
The study draws on earlier drafts of chapters 1, 2, and 3 prepared by
Christian O. Wolf (Economist, Cambridge University, United
Kingdom). The data and material utilized in the calculation of the value
creation index and value drivers were collected by Michelle M. Foss,
Gurcan Gulen, Miranda Wainberg, Ruzanna Makaryan, and Dmitry
Volkov (Center for Energy Economics, Bureau of Economic Geology,
University of Texas at Austin – CEE), who also contributed to the
definition of the statistical model of value creation and prepared the
original version of the case studies. The comments of peer reviewers
Alan H. Gelb (Center for Global Development ), Robert W. Bacon and
Charles McPherson, both consultants (Oil, Gas, and Mining Policy
Division, World Bank), Sunita Kikeri (Corporate Governance
Department, World Bank), and Andre Plourde (professor, department
of economics, University of Alberta) are gratefully acknowledged.
Comments were also provided by PRMSP. Steven B. Kennedy and
Fayre Makeig edited the paper.
4
1. China National Offshore Oil Company (China)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 128.00 135.00 179.00 208.00 239.00
Company oil production MM Bbls 116.00 130.00 136.00 134.00 155.00
E&P production (BOE) MM BOE 139.30 154.57 168.58 171.86 198.50
E&P production growth % 7.66 10.97 9.06 1.94 15.50
Total net additions proved oil reserves MM Bbls 130.00 107.00 126.00 209.00 172.00
Total net additions proved gas reserves BCF 465.00 324.00 295.00 199.00 -200.00
Total net additions proved gas reserves MM BOE 84.63 58.97 53.69 36.22 -36.40
Reserve additions (BOE) MM BOE 214.63 165.97 179.69 245.22 135.60
Reserves replacement rate % 1.54 1.07 1.07 1.43 0.68
Primary distillation capacity MBPD
Total refining throughput MBPD
Refinery utilization rate %
Assets (national currency) MM 93,801.86 114,765.06 155,268.02 179,793.00 206,669.00
Assets $ MM 11,328.73 14,029.96 19,895.70 23,567.36 30,292.27
Output / total assets BOE/000$ 12.30 11.02 8.47 7.29 6.55
Employees # of people 2,524.00 2,696.00 2,929.00 3,288.00 3,584.00
Output / total employees BOE/000$ 55.19 57.33 57.55 52.27 55.38
Financial Performance
unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) MM 24,408.00 39,075.00 51,741.00 54,364.00 79,381.00
Direct expenditures on social/economic development programs (national currency)
MM 6.00 6.00 5.00 8.85 10.50
Total revenue (national currency) MM 55,219.00 69,456.00 90,842.00 90,724.00 125,977.00
EBRTN MM 24,414.00 39,081.00 51,746.00 54,372.85 79,391.50
EBRTN / revenues % 44.21 56.27 56.96 59.93 63.02
EBRTN / total assets % 26.03 34.05 33.33 30.24 38.41
Total capital expenditures (national currency) MM 12,843.00 16,606.00 21,175.00 26,862.00 37,321.00
Net cash flow after taxes and dividends (national currency) MM 18,299.00 27,027.00 33,442.00 33,930.64 46,360.72
NCF/CAPEX % 1.42 1.63 1.58 1.26 1.24
National Mission Performance
unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 2,484.00 2,688.00 2,879.00 3,248.00 3,546.00
Total number of NOC non-local employees # of people 40.00 8.00 50.00 40.00 38.00
Share of nationals in NOC workforce % 0.98 1.00 0.98 0.99 0.89
NOC employment in native country (# people) # of people 1,524.00 1,780.00 2,029.00 2,351.00 2,684.00
NOC annual employment growth % 5.32 16.80 13.99 15.87 14.16
Country Labor Force # of people
(000) 754,509.40 760,627.0 0 766,465.20 771,078.90 776,881.00
Country annual employment growth % 0.81 0.81 0.77 0.60 0.75
NOC - Country employment growth pp 4.51 15.99 13.22 15.27 13.41
NOC employment share of country workforce % 0.00 0.00 0.00 0.00 0.00
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM 19,274.00 23,912.00 29,996.00 38,679.00 52,288.00
Share of local content %
NOC noncommercial expenditure (national currency) MM 6.00 6.00 5.00 8.85 10.50
NOC noncommercial expenditures $ MM
Noncommercial expenditure/Total expenditure % 0.03 0.03 0.02 0.02 0.02
Net income from noncore commercial business activities $ MM
Net income $ MM 1,949.00 3,096.00 3,963.00 3,704.94 6,504.25
Net income noncore commercial activities/Net income %
Price subsidies provided by NOC MM
Total NOC Revenues (national currency) MM 55,219.00 69,456.00 90,842.00 90,724.00 125,977.00
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE
Country oil consumption MMBOE 2,471.87 2,549.20 2,694.35 2,825.90 2,919.58
Domestic output use %
5
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 7.66 10.97 9.06 1.94 15.50
Reserves replacement rate (BOE, %) 154.08 107.37 106.59 142.69 68.31
Refinery utilization rate (%)
Output / total assets (BOE/'000$) 1229.58 1101.71 847.31 729.21 655.28
Output / total employees ('000 BOE) 5518.86 5733.31 5755.48 5226.76 5538.45
Financial Performance
EBRTN / revenues (%) 44.21 56.27 56.96 59.93 63.02
EBRTN / total assets (%) 26.03 34.05 33.33 30.24 38.41
NCF / CAPEX (%) 142.48 162.75 157.93 126.31 124.22
National Mission Performance
Share of nationals in NOC workforce (%) 98.42 99.70 98.29 98.78 88.94
NOC – Country employment growth (% points) 4.51 15.99 13.22 15.27 13.41
NOC employment share of country workforce (%) 0.00 0.00 0.00 0.00 0.00
Share of local content (%)
Noncommercial expenditures/total expenditures (%) 0.03 0.03 0.02 0.02 0.02
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%)
Domestic output use (%)
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.60 0.47 0.42 0.57 0.53
E&P production growth 0.46 0.07 0.41 0.53 0.80
Reserves replacement rate 0.68 0.53 0.15 0.83 0.41
Refinery utilization rate
Output / total assets 0.24 0.26 0.24 0.22 0.19
Output / total employees 1.00 1.00 0.88 0.70 0.72
Financial Performance 0.54 0.52 0.49 0.50 0.52
EBRTN / revenues 0.50 0.60 0.59 0.63 0.68
EBRTN / total assets 0.41 0.35 0.29 0.36 0.55
NCF / CAPEX 0.73 0.60 0.61 0.50 0.34
National Mission Performance 0.41 0.41 0.45 0.35 0.32
Share of nationals in NOC workforce 0.98 1.00 0.98 0.98 0.86
NOC employment growth 0.67 0.65 0.82 0.41 0.41
NOC employment share of country workforce 0.00 0.00 0.00 0.00 0.00
Share of local content
Noncommercial expenditures/total expenditures 0.01 0.00 0.00 0.00 0.00
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues
Domestic output use
VCI 0.52 0.46 0.45 0.47 0.46
6
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource endowment oil MMBBL
15,531 15,587 15,615 15,493 14,817 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 1,448 1,535 1,684 2,255 2,455
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource endowment MMBOE
24,640 25,240 26,204 29,678 30,261 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -1.45 -1.52 -1.68 -1.72 -1.72 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability -0.14 -0.25 -0.31 -0.28 -0.32 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.05 -0.12 0.06 0.19 0.24 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality -0.29 -0.25 -0.33 -0.24 -0.22 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.36 -0.41 -0.48 -0.45 -0.33 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control -0.58 -0.67 -0.53 -0.61 -0.44 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as
% of Total Government Revenues
Hydrocarbon Revenues as
% of GDP
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
109 161 126 76 77 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil
Imports-000 BPD 2,780 2,904 3,379 3,670 3,857
US Energy Information Administration at
http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=CH
(Country Revenues Oil
Exports)-(Costs Oil
Imports) US $ Billion
-35 -51 -72 -91 -130
Exports valued at China Daiqing oil price and
imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Gross Domestic
Product US $ Billion 1,930 2,240 2,660 3,380 4,333
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports (Imports) as % of GDP
-1.82 -2.26 -2.72 -2.68 -3.01 CEE calculation
Government Budget
Surplus/Deficit as % of
Gross Domestic Product
-2.35 -2.12 -1.62 -1.44
World Bank Development Indicators:
http://data.worldbank.org/indicator
Stabilization Mechanisms
such as petroleum funds
(yes-1/no-0)
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues (yes-1/no-0)
0 0 0 0 0 CEE assessment
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and regulatory
function (100); Regulatory function is performed by
ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one
entity (0).
Country oil production MM Barrels
1,271 1,324 1,345 1,366 1,385 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country gas production BCF
1,460 1,742 2,068 2,445 2,679 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
7
Country MMBOE
production 1,523 1,624 1,702 1,788 1,847 CEE calculation
NOC MMBOE Domestic
Production 1,374 1,465 1,525 1,550 1,621
CNOOC, Petro China and Sinopec Form 20Fs for
relevant year
Non-NOC percentage of
oil and gas production (%) 9.8 9.8 10.4 13.3 12.2 CEE calculation
Country Refinery Capacity - 000 BPD
6,289 6,587 7,029 7,511 7,732 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Net NOC Refinery Capacity - 000 BPD
(country level)
5,300 5,552 5,847 6,042 6,193 CNOOC Form 20Fs for relevant year. CNOOC has no refining operations. Volumes are for Petro China
and Sinopec.
Non-NOC percentage of
refinery capacity (%, country level)
15.7 15.7 16.8 19.6 19.9 CEE calculation.
Total Revenues (local
currency MM) 55,219 69,456 90,842 90,724 125,977 CNOOC Form 20Fs for relevant year
Royalties and production
taxes (local currency MM) 1,722 2,593 3,316 3,432 3,410 CNOOC Form 20Fs for relevant year
Income taxes (local
currency MM) 6,930 10,978 13,477 12,052 13,505 CNOOC Form 20Fs for relevant year
Dividends paid to government (local
currency MM)
4,024 5,129 6,615 7,375 9,377 CNOOC Form 20Fs for relevant year
Royalties, production taxes, income taxes and
dividends paid to
government by NOC as percentage of total
revenues (%)
23.0 26.9 25.8 25.2 20.9 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 2.42 2.16
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.97 2.64 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.84 2.11
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 3.03 2.6
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.16 1.78 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 25 25 25 25 25
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public
documentation of NOC objectives (0).
CNOOC Form 20Fs for relevant year and website
material.
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream
production operated by
specific NOC. If no data yes-1/no-0.
1 1 1 1 1
% operated not disclosed in Form 20Fs but
company appears to be a substantial operating
entity
8
Percentage of NOC
domestic refining production operated by
specific NOC. If no data
yes-1/no-0.
CNOOC has no refining operations
NOC upstream capital
expenditures as percentage
of total capital expenditures (%)
100 100 100 100 100 CNOOC Form 20Fs for relevant year
NOC refining capital
expenditures as percentage
of total capital expenditures (%)
CNOOC has no refining operations
NOC upstream oil equity
production as percentage of total NOC refining
throughput (%). If no data,
yes/no.
Not applicable
NOC international
revenues as percentage of
total NOC revenues (%). If
no data yes-1/no-0.
10.0 10.0 10.0 14.0 28.0 CNOOC Form 20Fs for relevant year
Joint ventures between the NOC and third parties
100 100 100 100 100
Scoring: NOC partnerships/JVs exist domestically
and internationally (100); NOC partnerships exist
domestically but not internationally (66); NOC partnerships exist internationally but not
domestically (33); NOC partnerships, JVs, alliances
do not exist (0).
CNOOC Form 20Fs for relevant year and website
material.
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of
specific NOC (%)
34.0 34.0 34.0 36.0 36.0 CNOOC Forms 20Fs for relevant year
Percentage of independent
BOD members (%) 42.0 42.0 42.0 45.0 45.0 CNOOC Forms 20Fs for relevant year
Appointment authority for
NOC chairman and chief executive officer
50 50 50 50 50
Scoring: (100)-The government has no participation
in deciding who will fill the positions of Chairman/CEO; (50)-The government through its
control of required voting shares can influence,
directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO
is a direct appointee of the government entity
CNOOC Forms 20Fs for relevant year
Independence of NOC
capital and budget
processes
75 75 75 75 75
Scoring: No governmental approval of NOC budget
required (100); No governmental approval of NOC budget required but certain capital expenditures
require state approval (75);NOC budget is proposed
to and approved by one central government entity (50); NOC budget is proposed to and approved by
multiple central government entities (25); NOC
budget is part of the national budget (0).
CNOOC Forms 20Fs for relevant year
NOC net cash flow after taxes and dividends (local
currency MM)
18,299 27,027 33,442 33,931 46,361
CNOOC Forms 20Fs for relevant year
NOC capital expenditures
(local currency MM) 18,622 17,472 45,150 26,862 37,321
CNOOC Forms 20Fs for relevant year
NOC financial
sustainability (%) 98.3 154.7 74.1 126.3 124.2
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures %
CEE Calculation
9
NOC financial
transparency 100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange (100); FS
auditing performed and publicly disclosed by
independent international auditor (75); FS auditing performed and publicly disclosed by independent
domestic or government auditor (50) ; FS auditing
performed internally by N OC and publicly disclosed (25); No publicly available auditing (0)
CNOOC Forms 20Fs for relevant year
NOC upstream reserves
transparency 100 100 100 100 100
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and
files reports with international exchange (100); reserves auditing performed and publicly disclosed
by independent international firm (75); reserves
auditing performed and publicly disclosed by independent domestic firm (50) ; reserves auditing
performed internally and publicly disclosed (25);
No publicly available reserves auditing (0).
CNOOC Forms 20Fs for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
10
2. Ecopetrol S.A. (Colombia)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 123.00 130.00 113.60 118.80 136.00
Company oil production MM Bbls 111.69 113.52 95.70 99.20 111.00
E&P production (BOE) MM BOE 132.90 135.93 115.29 119.68 134.45
E&P production growth % -8.50 2.28 -15.19 3.81 12.34
Total net additions proved oil reserves MM Bbls 127.00 117.00 86.00 35.70 52.50
Total net additions proved gas reserves BCF 31.00 157.50 238.10 55.30
Total net additions proved gas reserves MM BOE 0.00 5.64 28.67 43.33 10.06
Reserve additions (BOE) MM BOE 127.00 122.64 114.67 79.03 62.56
Reserves replacement rate % 95.56 90.23 99.46 66.04 46.53
Primary distillation capacity MBPD 335.00 335.00 335.00 335.00 335.00
Total refining throughput MBPD 305.60 296.30 314.93 313.26 312.57
Refinery utilization rate % 91.22 88.45 94.01 93.51 93.30
Assets $ MM 11,702.00 14,300.00 18,821.00 29,699.50 40,303.40
Output / total assets BOE/000$ 20.88 17.07 12.23 7.88 6.17
Employees # of people 6,027.00 5,856.00 5,965.00 6,074.00 6,517.00
Output / total employees BOE/000$ 40.56 41.68 38.60 38.53 38.14
Financial Performance
unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 6,333.86 7,430.10 7,517.90 10,991.49 18,011.35
Direct expenditures on social/economic development programs (national currency)
Bn 30.51 34.51 40.46 73.15 125.80
Total revenue (national currency) Bn 13,050.61 15,512.90 18,389.96 22,332.32 33,896.67
EBRTN Bn 6,364.38 7,464.61 7,558.36 11,064.64 18,137.15
EBRTN / revenues % 48.77 48.12 41.10 49.55 53.51
EBRTN / total assets % 22.76 22.87 16.57 23.00 37.24
Total capital expenditures (national currency) Bn 1,651.75 1,749.69 1,862.93 3,036.96 6,704.60
net cash flow after taxes and dividends Bn 1,364.30 1,232.39 4,353.69 5,809.09 7,604.00
NCF/CAPEX % 82.60 70.43 233.70 191.28 113.41
National Mission Performance
unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 6,027.00 5,856.00 5,965.00 6,074.00 6,515.00
Total number of NOC non-local employees # of people 0.0 0.0 0.0 0.0 2.0
Share of nationals in NOC workforce % 100.00 100.00 100.00 100.00 100.00
NOC employment in native country (# people) # of people 6,027.00 5,856.00 5,965.00 6,074.00 6,515.00
NOC annual employment growth % -4.30 -2.84 1.86 1.83 7.26
Country Labor Force # of people
(000) 16,889.04 17,312.09 17,710.82 18,082.42 18,550.11
Country annual employment growth % 2.53 3 2.30 2.10 2.59
NOC - Country employment growth % points -6.83 -5.34 -0.44 -0.27 4.67
NOC employment share of country workforce % 0.04 0.03 0.03 0.03 0.04
NOC local purchases goods and services (national
currency) MM
NOC total purchases goods and services $ Bn 9,100.46 13,236.02 13,872.19 14,648.03 24,38.93
Share of local content %
58.00 91.00 88.00 79.00
NOC noncommercial expenditure (national currency) MM 30,510.30 34,509.20 40,461.00 73,148.00 125,800.00
NOC noncommercial expenditure $ MM
Noncommercial expenditure/Total expenditure % 0.34 0.26 0.29 0.50 0.52
Net income from non-core commercial business activities $ MM
Net income $ MM 788.58 1,395.44 1,399.00 2,570.92 5,183.51
Net income noncore commercial activities/Net income %
Price subsidies provided by NOC (national currency) Bn 3,853.44 4,871.55 3,350.00
Total NOC Revenues (national currency) Bn 13,050.61 15,512.90 18,389.96 22,332.32 33,896.67
Price Subsidies/Revenues % 29.50 31.40 18.20
NOC domestic petroleum products production MMBOE 91.58 88.79 95.61 93.43 87.69
Country oil consumption MMBOE 81.41 83.81 87.63 85.56 85.55
Domestic output use % 112.49 106.94 109.11 109.19 102.50
11
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) -8.50 2.28 -15.19 3.81 12.34
Reserves replacement rate (BOE, %) 95.56 90.23 99.46 66.04 46.53
Refinery utilization rate (%) 91.22 88.45 94.01 93.51 93.30
Output / total assets (BOE/'000$) 20.89 17.07 12.23 7.88 6.17
Output / total employees ('000 BOE) 40.56 41.68 38.60 38.53 38.14
Financial Performance
EBRTN / revenues (%) 48.77 48.12 41.10 49.55 53.51
EBRTN / total assets (%) 22.76 22.87 16.57 23.00 37.24
NCF / CAPEX (%) 82.60 70.43 233.70 191.28 113.41
National Mission Performance
Share of nationals in NOC workforce (%) 100.00 100.00 100.00 100.00 99.97
NOC – Country employment growth (% points) -6.83 -5.34 -0.44 -0.27 4.67
NOC employment share of country workforce (%) 0.04 0.03 0.03 0.03 0.04
Share of local content (%) 58.00 91.00 88.00 79.00
Noncommercial expenditures/total expenditures (%) 0.34 0.26 0.29 0.50 0.52
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%) 29.53 31.40 18.22
Domestic output use (%) 112.49 105.94 109.11 109.19 102.50
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.44 0.42 0.29 0.47 0.40
E&P production growth 0.00 0.05 0.02 0.57 0.71
Reserves replacement rate 0.51 0.47 0.14 0.62 0.21
Refinery utilization rate 0.54 0.44 0.38 0.39 0.40
Output / total assets 0.43 0.42 0.35 0.24 0.18
Output / total employees 0.73 0.72 0.58 0.51 0.49
Financial Performance 0.45 0.27 0.46 0.50 0.47
EBRTN / revenues 0.56 0.50 0.39 0.50 0.57
EBRTN / total assets 0.35 0.19 0.00 0.23 0.53
NCF / CAPEX 0.42 0.12 1.00 0.78 0.30
National Mission Performance 0.49 0.47 0.58 0.46 0.49
Share of nationals in NOC workforce 1.00 1.00 1.00 1.00 1.00
NOC employment growth 0.29 0.24 0.55 0.20 0.27
NOC employment share of country workforce 0.02 0.02 0.02 0.03 0.03
Share of local content 0.53 1.00 1.00 0.84
Noncommercial expenditures/total expenditures 0.12 0.02 0.01 0.02 0.03
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues 1.00 1.00 0.91
Domestic output use 0.49 0.50 0.56 0.53 0.77
VCI 0.46 0.39 0.44 0.48 0.45
12
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource endowment oil MMBBL
1,478 1,453 1,509 1,510 1,362 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 119 113 123 125 112
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource endowment MMBOE
2,226 2,164 2,283 2,296 2,066 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -0.30 -0.24 -0.14 -0.25 -0.26 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability -1.92 -1.75 -1.61 -1.57 -1.66 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.08 -0.11 -0.01 0.03 0.13 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality -0.06 0.04 0.12 0.21 0.24 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.82 -0.72 -0.58 -0.55 -0.50 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control -0.19 -0.17 -0.16 -0.24 -0.25 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as % of Total Government
Revenues
5.0 7.0 10.0 10.0 10.0
"Comparative Study on the Distribution of Oil Rents
in Bolivia, Colombia, Ecuador and Peru," Joint UNDP/World Bank ESMAP, January 2005;
"Colombia's Energy Industry," Embassy of
Colombia, Washington DC available at http://www.iccair.com/linkandddb/html/data%20Ba
se/Colombia/5495_COLOMBIAS_ENERGY_IND
USTRY.pdf
Hydrocarbon Revenues as %
of GDP 7.0 8.0 8.0 8.0 8.0
"Comparative Study on the Distribution of Oil Rents
in Bolivia, Colombia, Ecuador and Peru," Joint
UNDP/World Bank ESMAP, January 2005; "Colombia's Energy Industry," Embassy of
Colombia, Washington DC available at
http://www.iccair.com/linkandddb/html/data%20Base/Colombia/5495_COLOMBIAS_ENERGY_IND
USTRY.pdf
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
228 231 234 244 246 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil Imports-
000 BPD
(Country Revenues Oil Exports)-(Costs Oil Imports)
US $ Billion
3 4 5 6 9
Exports valued at Colombia Cano Limon oil price as reported in 2008 OPEC Annual Statistical
Bulletin at www.opec.org
Country Gross Domestic
Product US $ Billion 114 145 162 208 244
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports
(Imports) as % of GDP
2.59 2.98 3.31 2.98 3.64 CEE calculation
Government Budget
Surplus/Deficit as % of
Gross Domestic Product
-4.03 -8.47 -1.95 -3.24 -2.00 http://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=COP
Stabilization Mechanisms
such as petroleum funds
(yes-1/no-0)
1 1 1 1 1 http://www.sovereignwealthfundsnews.com/funds.php; www.rigzone.com/news/article.asp?a_id=46654.
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues (yes-1/no-0)
1 1 1 1 1 Ecopetrol Forms 20F and annual reports for relevant
years
13
Institutional structure 100 100 100 100 100
Scoring: Independent NOC, Ministry and regulatory
function (100); Regulatory function is performed by ministry (66); Regulatory function is performed by
NOC (33); All three functions combined in one
entity (0).
Ecopetrol Forms 20F and annual reports for relevant
years
Country oil production MM
Barrels 201 202 204 205 225
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country gas production BCF 224 237 248 266 319 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country MMBOE production
240 243 247 251 280 CEE calculation
NOC MMBOE Domestic
Production 114 115 116 121 135
Ecopetrol Forms 20F and annual reports for relevant
years
Non-NOC percentage of oil
and gas production (%) 52.4 52.6 53.0 51.8 51.8 CEE calculation
Country Refinery Capacity -
000 BPD 335 335 335 335 335
Ecopetrol Forms 20F and annual reports for relevant
years
Net NOC Refinery Capacity
- 000 BPD (country level) 335 335 335 335 335
Ecopetrol Forms 20F and annual reports for relevant
years
Non-NOC percentage of refinery capacity (%,
country level)
0.0 0.0 0.00 0.0 0.0 CEE calculation.
Total Revenues (local currency Bn)
13,100 15,500 18,390 22,332 33,897 Ecopetrol Forms 20F and annual reports for relevant years
Royalties and production
taxes (local currency Bn) 2,400 2,899 3,310 4,020 6,101
Ecopetrol Forms 20F and annual reports for relevant
years
Income taxes (local
currency Bn) 806 1,035 4,382 1,886 1,500
Ecopetrol Forms 20F and annual reports for relevant
years
Dividends paid to
government (local currency
Bn)
1,158 1,298 2,000 4,028 4,189 Ecopetrol Forms 20F and annual reports for relevant years
Royalties, production taxes, income taxes and dividends
paid to government by NOC
as percentage of total revenues (%)
33.3 33.8 52.7 44.5 34.8 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 1.55 1.64
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
1.89 1.98 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.23 2.15
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of regulatory
uncertainty on decision to invest
No
survey
No
survey
No
survey 1.93 2.1
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.35 1.95 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
14
NOC objectives 25 25 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public
documentation of NOC objectives (0).
Ecopetrol Form 20Fs for relevant year and website
material.
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream production
operated by specific NOC. If
no data yes-1/no-0.
1 1 1 1 1 % operated not disclosed in Form 20Fs but company
appears to be a substantial operating entity
Percentage of NOC domestic refining production operated
by specific NOC. If no data
yes-1/no-0.
100 100 100 88 88 CNOOC has no refining operations
NOC upstream capital
expenditures as percentage
of total capital expenditures (%)
76.0 75.0 70.3 88.2 73.3 Ecopetrol Form 20Fs for relevant year and website
material.
NOC refining capital
expenditures as percentage of total capital expenditures
(%)
17.0 18.0 23.4 7.7 11.6 Ecopetrol Form 20Fs for relevant year and website material.
NOC upstream oil equity
production as percentage of total NOC refining
throughput (%). If no data,
yes/no.
100.4 100.4 100.4 104.3 115.3 Ecopetrol Form 20Fs for relevant year and website
material.
NOC international revenues
as percentage of total NOC
revenues (%). If no data yes-1/no-0.
0 0 0 1 1 Ecopetrol Form 20Fs for relevant year and website
material.
Joint ventures between the NOC and third parties
66 66 66 100 100
Scoring: NOC partnerships/JVs exist domestically
and internationally (100); NOC partnerships exist
domestically but not internationally (66); NOC partnerships exist internationally but not
domestically (33); NOC partnerships, JVs, alliances
do not exist (0).
Ecopetrol Form 20Fs for relevant year and website
material.
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of
specific NOC (%)
0 0 0 10 10 Ecopetrol Form 20Fs for relevant year and website material.
Percentage of independent
BOD members (%) 33.0 33.0 33.0 66.0 66.0
Ecopetrol Form 20Fs for relevant year and website
material.
Appointment authority for
NOC chairman and chief executive officer
50 50 50 50 50
Scoring: (100)-The government has no participation in deciding who will fill the positions of
Chairman/CEO; (50)-The government through its
control of required voting shares can influence, directly or indirectly, the appointments of
Chairman/CEO and (0) The Chairman and/or CEO
is a direct appointee of the government entity
Ecopetrol Form 20Fs for relevant year and website
material.
Independence of NOC
capital and budget processes 0 0 0 75 75
Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC
budget required but certain capital expenditures
require state approval (75);NOC budget is proposed to and approved by one central government entity
(50); NOC budget is proposed to and approved by
multiple central government entities (25); NOC
15
budget is part of the national budget (0).
Ecopetrol Form 20Fs for relevant year and website
material.
NOC net cash flow after
taxes and dividends (local currency Bn)
1,364 1,232 4,354 5,809 7,604 Ecopetrol Forms 20Fs for relevant year
NOC capital expenditures
(local currency Bn) 1,652 1,750 1,863 3,037 6,705 Ecopetrol Forms 20Fs for relevant year
NOC financial sustainability
(%) 82.6 70.4 233.7 191.3 113.4
Measured by net cash flow after taxes and dividends as percentage of capital expenditures %
CEE Calculation
NOC financial transparency 50 50 100 100 100
Scoring: NOC financial statement auditing performed by independent international auditor and
files reports with international exchange (100); FS
auditing performed and publicly disclosed by independent international auditor (75); FS auditing
performed and publicly disclosed by independent
domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly
disclosed (25); No publicly available auditing (0)
Ecopetrol Forms 20Fs for relevant year
NOC upstream reserves
transparency 0 0 0 0 100
Scoring: NOC oil & gas reserves auditing performed
by independent international firm and files reports with international exchange (100); reserves auditing
performed and publicly disclosed by independent
international firm (75); reserves auditing performed and publicly disclosed by independent domestic
firm (50) ; reserves auditing performed internally
and publicly disclosed (25); No publicly available reserves auditing (0).
Ecopetrol Forms 20Fs for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
16
3. Ente Nazionale Idrocarburi S.p.A. (Italy)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 1,236.26 1,312.18 1,447.59 1,501.61 1,614.76
Company oil production MM Bbls 377.41 405.52 393.84 372.30 374.49
E&P production (BOE) MM BOE 602.41 644.33 657.30 645.59 668.38
E&P production growth % 5.66 6.96 2.01 -1.78 3.53
Total net additions proved oil reserves MM Bbls 284.00 89.00 273.00 -25.00 480.00
Total net additions proved gas reserves BCF 1,926.00 65.00 829.00 737.00 2,163.00
Total net additions proved gas reserves MM BOE 350.53 11.83 150.88 134.13 393.67
Reserve additions (BOE) MM BOE 634.53 100.83 423.88 109.13 873.67
Reserves replacement rate % 105.33 15.65 64.49 16.90 130.71
Primary distillation capacity MBPD 681.0 701.0 711.0 748.0 737.0
Total refining throughput MBPD 681.0 701.0 711.0 755.5 700.2
Refinery utilization rate % 100.00 100.00 100.00 101.00 95.00
Assets in USD MM 90,621.85 104,317.79 110,884.55 139,187.98 171,480.57
Output / total assets BOE/000$ 9.39 8.63 8.27 6.62 5.39
Employees # of people 70,348.00 72,258.00 73,572.00 75,862.00 78,880.00
Output / total employees BOE/000$ 12.10 12.46 12.46 12.14 11.71
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) MM 13,163.00 17,817.00 20,160.00 19,648.00 19,519.00
Direct expenditures on social/economic development programs (national currency)
MM 31.61 62.01 74.70 85.90 84.20
Total revenue (national currency) MM 57,545.00 73,728.00 86,105.00 87,256.00 108,148.00
EBRTN MM 13,194.61 17,879.01 20,234.70 19,733.90 19,603.20
EBRTN / revenues % 22.93 24.25 23.50 22.62 18.13
EBRTN / total assets % 18.11 21.32 22.91 19.43 16.81
Total capital expenditures (national currency) MM 7,499.00 7,560.00 7,928.00 20,502.00 18,867.00
Net cash flow after taxes and dividends MM 12,500.00 13,710.20 15,622.80 14,092.00 20,387.10
NCF/CAPEX % 166.69 181.35 197.06 68.73 108.06
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 40,761.00 40,192.00 39,765.00 39,427.00 39,480.0
Total number of NOC non-local employees # of people 29,587.00 32,066.00 33,807.00 36,435.00 39,400.0
Share of nationals in NOC workforce % 57.94 55.62 54.05 51.97 50.05
NOC employment in native country (# people) # of people 40,761.00 40,192.00 39,765.00 39,427.00 39,480.00
NOC annual employment growth % -3.49 -1.40 -1.06 -0.85 0.13
Country Labor Force # of people
(000) 24,658.62 24,591.63 24,783.52 24,814.16 25,211.84
Country annual employment growth % 2.45 -0.27 0.78 0.12 1.60
NOC - Country employment growth % points -5.94 -1.12 -1.84 -0.97 -1.47
NOC employment share of country workforce % 0.17 0.16 0.16 0.16 0.16
NOC local purchases goods and services $ MM
17,166.88 16,312.64
NOC total purchases goods and services $ MM 57,027.84 69,827.60 82,138.84 107,832.31 140,130.47
Share of local content %
15.92 11.64
NOC noncommercial expenditure (national currency) MM 31.61 62.01 74.70 85.90 84.20
NOC noncommercial expenditure $ MM 39.32 77.15 93.79 117.73 123.84
Noncommercial expenditure/Total expenditure % 0.07 0.11 0.11 0.11 0.09
Net income from non-core commercial business
activities $ MM
Net income from total commercial activities $ MM 8,780.69 10,933.15 11,572.87 13,720.08 12,979.81
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ MM
Total NOC Revenues $ MM 71,580.2 91,725.0 108,113.4 119,584.3 159,064.1
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE 237.83 242.63 239.25 231.15 215.85
Country oil consumption MMBOE 683.78 663.95 661.60 642.20 617.34
Domestic output use % 34.78 36.54 36.16 35.99 34.96
17
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 5.66 6.96 2.01 -1.78 3.53
Reserves replacement rate (BOE, %) 105.33 15.65 64.49 16.90 130.71
Refinery utilization rate (%) 100.00 100.00 100.00 101.00 95.00
Output / total assets (BOE/'000$) 9.39 8.63 8.27 6.62 5.39
Output / total employees ('000 BOE) 12.10 12.46 12.46 12.14 11.71
Financial Performance
EBRTN / revenues (%) 22.93 24.25 23.50 22.62 18.13
EBRTN / total assets (%) 18.11 21.32 22.91 19.43 16.81
NCF / CAPEX (%) 166.69 181.35 197.06 68.73 108.06
National Mission Performance
Share of nationals in NOC workforce (%) 57.94 55.62 54.05 51.97 50.05
NOC – Country employment growth (% points) -5.94 -1.12 -1.84 -0.97 -1.47
NOC employment share of country workforce (%) 0.17 0.16 0.16 0.16 0.16
Share of local content (%) 15.92 11.64
Noncommercial expenditures/total expenditures (%) 0.07 0.11 0.11 0.11 0.09
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%)
Domestic output use (%) 34.78 36.54 36.16 35.99 34.96
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.40 0.26 0.25 0.36 0.43
E&P production growth 0.41 0.06 0.30 0.44 0.44
Reserves replacement rate 0.54 0.22 0.05 0.48 1.00
Refinery utilization rate 0.67 0.61 0.48 0.52 0.42
Output / total assets 0.18 0.20 0.23 0.20 0.15
Output / total employees 0.20 0.21 0.18 0.15 0.15
Financial Performance 0.44 0.35 0.36 0.19 0.21
EBRTN / revenues 0.21 0.18 0.16 0.16 0.15
EBRTN / total assets 0.27 0.17 0.11 0.17 0.19
NCF / CAPEX 0.85 0.70 0.81 0.25 0.29
National Mission Performance 0.21 0.20 0.25 0.15 0.16
Share of nationals in NOC workforce 0.49 0.47 0.42 0.41 0.38
NOC - Country employment growth 0.32 0.32 0.52 0.19 0.18
NOC employment share of country workforce 0.08 0.09 0.11 0.13 0.13
Share of local content 0.00 0.00
Noncommercial expenditures/total expenditures 0.02 0.01 0.00 0.00 0.00
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues
Domestic output use 0.14 0.15 0.18 0.16 0.24
VCI 0.35 0.27 0.29 0.23 0.27
18
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource endowment oil MMBBL
801 803 825 878 978 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 114 107 86 77 64
BP Statistical Review of World Energy June 200
9 available at http://www.bp.com/statisticalreview
Country specific resource endowment MMBOE
1520 1475 1368 1361 1381 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability 1.15 1.00 1.00 1.09 0.96 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability 0.33 0.34 0.42 0.39 0.41 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 0.79 0.66 0.47 0.32 0.39 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality 1.05 0.89 0.85 0.81 0.95 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law 0.66
0.50 0.34 0.41 0.43 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control 0.49 0.25 0.33 0.32 0.13 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as % of Total Government
Revenues
Hydrocarbon Revenues as % of GDP
WTO membership (yes-
1/no-0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-1/no-0) over five years
0 0 0 0 0 www.opec.org
Country Crude Oil Exports -
000 BPD
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil Imports-000 BPD
1747 1805 1753 1776 1651 2009 OPEC Annual Statistical Bulletin at www.opec.org
(Country Revenues Oil
Exports)-(Costs Oil Imports)
US $ Billion
-23 -33 -39 -45 -57
Italy's imports valued at nominal oil price as
reported in 2008 OPEC Annual Statistical Bulletin
at www.opec.org
Country Gross Domestic
Product US $ Billion 1730 1780 1860 2110 2300
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues (Costs) of Oil Exports
(Imports) as % of GDP
-1.33 -1.87 -2.10 -2.12 -2.47 CEE calculation
Government Budget Surplus/Deficit as % of
Gross Domestic Product
-3.09 -2.57 -3.52 -2.24 -1.75 http://www.tradingeconomics.com/Economics/Gove
rnment-Budget.aspx?Symbol=ITL
Stabilization Mechanisms
such as petroleum funds (yes-1/no-0)
0 0 0 0 0 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national policy addressing
hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1
See "Regulation of the Italian Hydrocarbons
Industry" in ENI Form 20Fs for the relevant year available at www.eni.com
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by
ministry (66); Regulatory function is performed by
NOC (33); All three functions combined in one entity (0).
"Regulation of the Italian hydrocarbons Industry" in
ENI Form 20Fs for the relevant year available at www.eni.com
Country oil production MM
Barrels 41 46 44 44 40
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
19
Country gas production BCF 418 391 355 314 295 BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country MMBOE
production 113 113 105 98 91 CEE calculation
NOC MMBOE Domestic
Production 99 95 87 77 73
ENI Forms 20F and annual reports for relevant
years
Non-NOC percentage of oil and gas production (%)
12.8 16.0 17.4 21.2 20.1 CEE calculation
Country Refinery Capacity - 000 BPD
2497 2515 2526 2497 2486 ENI Forms 20F and annual reports for relevant years
Net NOC Refinery Capacity
- 000 BPD (country level) 860 860 860 860 860
ENI Forms 20F and annual reports for relevant
years
Non-NOC percentage of
refinery capacity (%, country level)
65.6 65.8 66.0 65.6 65.4 CEE calculation.
Total Revenues (local
currency MM) 57,545 73,728 86,105 87,256 108,148
ENI Forms 20F and annual reports for relevant
years
Royalties and production
taxes (local currency MM) 118 157 181 188 260
Italian production taxes only. ENI Forms 20F and
annual reports for relevant years
Income taxes (local
currency MM) 632 762 909 746 924
Based on E&P income taxes paid in Italy. Other taxes not broken out geographically. ENI Forms
20F and annual reports for relevant years
Dividends paid to government (local currency
MM)
1,015 1,226 1,378 1,425 1,414 ENI Forms 20F and annual reports for relevant
years
Royalties, production taxes,
income taxes and dividends paid to government by NOC
as percentage of total
revenues (%)
3.1 2.9 2.9 2.7 2.4 CEE Calculation
Effect of contract terms on investment decisions
No survey
No survey
No survey
2.3 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of taxation regime on
decision to invest
No
survey
No
survey
No
survey 2.4
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of cost of regulatory
compliance on decision to
invest
No survey
No survey
No survey
1.98 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of regulatory
uncertainty on decision to
invest
No survey
No survey
No survey
2.67 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of environmental regulations on decision to
invest
No
survey
No
survey
No
survey 3
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
NOC objectives 100 100 100 100 100
Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are
publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked
and not publicly measured (25); No public documentation of NOC objectives (0).
ENI annual reports and fact books for relevant years available at www.eni.com/en
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic
upstream production
operated by specific NOC. If
1 1 1 1 1 % operated not disclosed in Form 20Fs but company appears to be a substantial operating entity
20
no data yes-1/no-0.
Percentage of NOC domestic
refining production operated by specific NOC. If no data
yes-1/no-0.
100.0 100.0 100.0 100.0 100.0 ENI Form 20Fs for relevant year and website material.
NOC upstream capital expenditures as percentage
of total capital expenditures
(%)
66.0 67.0 66.4 62.5 65.5 ENI Form 20Fs for relevant year and website
material.
NOC refining capital expenditures as percentage
of total capital expenditures
(%)
8.0 8.8 8.2 9.2 6.6 ENI Form 20Fs for relevant year and website
material.
NOC upstream oil equity
production as percentage of
total NOC refining throughput (%). If no data,
yes/no.
96.0 97.0 97.0 85.0 83.0% ENI Form 20Fs for relevant year and website
material.
NOC international revenues
as percentage of total NOC revenues (%). If no data yes-
1/no-0.
55.0 55.4 57.8 57.2 60.3 ENI Form 20Fs for relevant year and website material.
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist
domestically but not internationally (66); NOC
partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances
do not exist (0).
ENI Form 20Fs for relevant year and website
material.
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
69.7 69.7 69.7 69.7 69.7 ENI Form 20Fs for relevant year and website
material.
Percentage of independent BOD members (%)
33.3 33.3 33.3 33.3 33.3 ENI Form 20Fs for relevant year and website material.
Appointment authority for NOC chairman and chief
executive officer
100 100 100 100 100
Scoring: (100)-The government has no participation
in deciding who will fill the positions of
Chairman/CEO; (50)-The government through its control of required voting shares can influence,
directly or indirectly, the appointments of
Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity
ENI Form 20Fs for relevant year and website material.
Independence of NOC
capital and budget processes 75 75 75 75 75
Scoring: No governmental approval of NOC budget
required (100); No governmental approval of NOC budget required but certain capital expenditures
require state approval (75);NOC budget is proposed
to and approved by one central government entity (50); NOC budget is proposed to and approved by
multiple central government entities (25); NOC
budget is part of the national budget (0).
ENI Form 20Fs for relevant year and website
material.
NOC net cash flow after
taxes and dividends (local
currency MM)
12,500 13,710 15,623 14,092 20,387 ENI Forms 20Fs for relevant year
NOC capital expenditures (local currency MM)
7,499 7,560 7,928 20,502 18,867 ENI Forms 20Fs for relevant year
NOC financial sustainability
(%) 166.7 181.4 197.1 68.7 108.1
Measured by net cash flow after taxes and dividends
as percentage of capital expenditures %
CEE Calculation
21
NOC financial transparency 100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange (100); FS
auditing performed and publicly disclosed by
independent international auditor (75); FS auditing performed and publicly disclosed by independent
domestic or government auditor (50) ; FS auditing
performed internally by N OC and publicly disclosed (25); No publicly available auditing (0)
ENI Forms 20Fs for relevant year
NOC upstream reserves
transparency 100 100 100 100 100
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and
files reports with international exchange (100); reserves auditing performed and publicly disclosed
by independent international firm (75); reserves
auditing performed and publicly disclosed by independent domestic firm (50) ; reserves auditing
performed internally and publicly disclosed (25);
No publicly available reserves auditing (0).
ENI Forms 20Fs for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
22
4. Open Joint Stock Company Gazprom (Russia)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 19,499.21 19,586.70 19,622.10 19,360.09 19,398.91
Company oil production MM Bbls 89.88 157.40 340.42 339.43 322.26
E&P production (BOE) MM BOE 3,565.37 3,648.48 3,837.81 3,790.12 3,779.87
E&P production growth % 6.74 2.33 5.19 -1.24 -0.27
Total net additions proved oil reserves MM Bbls
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE
Reserve additions (BOE) MM BOE 1,690.00 5,785.00 17,715.00 4,869.00 3,967.00
Reserves replacement rate % 47.40 158.56 461.59 128.47 104.95
Primary distillation capacity MBPD 1,434.24 1,865.70 2,114.38 2,114.38 2,114.38
Total refining throughput MBPD 896.96 1,124.00 1,540.00 1,520.00 1,466.00
Refinery utilization rate % 96.00 60.25 72.83 71.89 69.33
Assets $ MM 111,234.87 153,379.07 195,217.83 265,334.22 288,125.72
Output / total assets BOE/000$ 35.00 26.46 22.54 16.38 14.98
Employees # of people 332,800.00 397,000.00 432,000.00 436,100.00 376,300.00
Output / total employees BOE/000$ 11.70 10.22 10.18 9.96 11.47
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 334.89 567.95 975.43 931.55 1,519.28
Direct expenditures on social/economic development programs (national currency)
Bn 13.34 15.67 18.56 18.27 22.64
Total revenue (national currency) Bn 976.78 1,383.55 2,152.11 2,423.25 3,518.96
EBRTN Bn 348.23 583.62 994.00 949.82 1,541.91
EBRTN / revenues % 35.65 42.18 46.19 39.20 43.82
EBRTN / total assets % 10.86 13.45 18.72 13.98 21.51
Total capital expenditures (national currency) Bn 241.44 352.62 485.64 576.89 801.33
net cash flow after taxes and dividends Bn 167.48 248.76 509.86 538.74 953.94
NCF/CAPEX % 69.37 70.55 104.99 93.39 119.04
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 99.90 99.90 99.90 99.90 99.90
NOC employment in native country # of people 329,472.00 393,030.00 427,680.00 431,739.00 372,537.00
NOC annual employment growth % 19.29 8.82 0.95 -13.71
Country Labor Force # of people
(000) 73,887.91 74,389.25 75,135.02 76,116.87 76,025.81
Country annual employment growth % 0.16 0.68 1.00 1.31 -0.12
NOC - Country employment growth % points -0.16 18.61 7.81 -0.36 -13.59
NOC employment share of country workforce % 0.45 0.53 0.57 0.57 0.49
NOC local purchases goods and services $ Bn
NOC total purchases goods and services $ Bn 955.60 1,282.18 1,849.56 2,298.35 3,059.99
Share of local content %
NOC noncommercial expenditure (national currency) MM 13,335.00 15,672.00 18,563.00 18,272.00 22,636.00
NOC noncommercial expenditure $ MM
Noncommercial expenditure/Total expenditure % 1.40 1.22 1.00 0.80 0.74
Net income from non-core commercial business
activities $ MM 336.22 756.45 1,139.71 1,484.38 1,475.08
Net income from total commercial activities $ MM 33,892.30 48,905.80 79,121.73 94,658.01 141,437.30
Net income noncore commercial activities/Net
income % 0.99 1.55 1.44 1.57 1.04
Price subsidies provided by NOC $ MM
Total NOC Revenues $ MM 33,892.30 48,905.80 79,121.73 94,658.01 141,437.30
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE 87.96 109.22 159.00 174.00 183.75
Country oil consumption MMBOE 955.78 949.52 988.79 987.67 1,020.77
Domestic output use % 9.20 11.50 16.08 17.62 18.00
23
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 6.74 2.33 5.19 -1.24 -0.27
Reserves replacement rate (BOE, %) 47.40 158.56 461.59 128.47 104.95
Refinery utilization rate (%) 96.00 60.25 72.83 71.89 69.33
Output / total assets (BOE/'000$) 35.00 26.46 22.54 16.38 14.98
Output / total employees ('000 BOE) 11.70 10.22 10.18 9.96 11.47
Financial Performance
EBRTN / revenues (%) 35.65 42.18 46.19 39.20 43.82
EBRTN / total assets (%) 10.86 13.45 18.72 13.98 21.51
NCF / CAPEX (%) 69.37 70.55 104.99 93.39 119.04
National Mission Performance
Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00
NOC – Country employment growth (% points) -0.16 18.61 7.81 -0.36 -13.59
NOC employment share of country workforce (%) 0.45 0.53 0.57 0.57 0.49
Share of local content (%)
Noncommercial expenditures/total expenditures (%) 1.40 1.22 1.00 0.80 0.74
Noncore commercial activities net income/Total net income (%) 0.99 1.55 1.44 1.57 1.04
Price Subsidies/Revenues (%)
Domestic output use (%) 9.20 11.50 16.08 17.62 18.00
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.47 0.32 0.43 0.38 0.33
E&P production growth 0.44 0.05 0.35 0.45 0.32
Reserves replacement rate 0.36 0.70 0.97 0.79 0.76
Refinery utilization rate 0.61 0.00 0.00 0.02 0.00
Output / total assets 0.73 0.66 0.67 0.50 0.44
Output / total employees 0.19 0.17 0.14 0.12 0.15
Financial Performance 0.30 0.20 0.27 0.26 0.35
EBRTN / revenues 0.38 0.42 0.45 0.37 0.45
EBRTN / total assets 0.15 0.06 0.04 0.07 0.27
NCF / CAPEX 0.36 0.13 0.33 0.36 0.32
National Mission Performance 0.41 0.48 0.48 0.40 0.26
Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99
NOC employment growth 0.51 0.70 0.72 0.20 0.00
NOC employment share of country workforce 0.20 0.28 0.40 0.46 0.42
Share of local content
Noncommercial expenditures/total expenditures 0.48 0.09 0.04 0.03 0.04
Noncore commercial activities net income/Total net income 0.23 0.82 0.70 0.67 0.44
Price Subsidies/Revenues
Domestic output use 0.02 0.02 0.07 0.06 0.11
VCI 0.39 0.33 0.39 0.35 0.32
24
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource endowment oil MMBBL
75,791 76,561 73,482 74,067 74,277 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 43,258 43,276 43,271 43,315 43,302
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource endowment MMBOE
347,884 348,768 345,564 346,520 346,645 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -0.58 -0.65 -0.92 -0.98 -0.97 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability -1.00 -0.94 -0.77 -0.72 -0.62 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.28 -0.36 -0.45 -0.41 -0.32 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality -0.24 -0.33 -0.57 -0.44 -0.56 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.82 -0.87 -0.95 -0.95 -0.91 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control -0.75 -0.74 -0.77 -0.91 -0.98 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as % of Total Government
Revenues
17.0 25.0 33.0 44.0 50.0
"Oil and Gas in the Russian Federation," by G.
Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank Conference
on Oil and Gas in Federal Systems, March, 2010;
"Natural Resource Endowments, Governance, and the Domestic Revenue Effort," F. Bornhorst, S.
Gupta, J. Thornton, IMF Working Paper wp/08/170,
July 2008.
Hydrocarbon Revenues as %
of GDP 7.0 13.0 18.0 21.0 25.0
"Oil and Gas in the Russian Federation," by G.
Kurlyandskaya, G. Pokatovich, M. Subbotin, Center
for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems, March, 2010;
"Natural Resource Endowments, Governance, and
the Domestic Revenue Effort," F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper wp/08/170,
July 2008.
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
4,822 5,335 5,524 5,864 5,646 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil Imports-
000 BPD 40 40 44 62 48
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil Imports)
US $ Billion
60 98 123 147 194 Exports valued at Russia Urals oil price and imports valued at nominal oil price as reported in 2008
OPEC Annual Statistical Bulletin at www.opec.org
Country Gross Domestic Product US $ Billion
592 765 991 1,290 1,680 World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports (Imports) as % of GDP
10.2 12.8 12.4 11.4 11.5 CEE calculation
Government Budget
Surplus/Deficit as % of
Gross Domestic Product
9.9 8.0 6.0 http://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=RUB
Stabilization Mechanisms such as petroleum funds
(yes-1/no-0)
1 1 1 1 1
Oil and Gas in the Russian Federation, by G.
Kurlyandskaya, G. Pokatovich, M. Subbotin, Center
for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems, March, 2010.
PETROLEUM SECTOR ORGANIZATION AND GOVERNANCE
Publicly disclosed national
policy addressing hydrocarbon sector issues
(yes-1/no-0)
0 0 0 0 0
Oil and Gas in the Russian Federation, by G.
Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank Conference
on Oil and Gas in Federal Systems, March, 2010.
25
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and regulatory
function (100); Regulatory function is performed by ministry (66); Regulatory function is performed by
NOC (33); All three functions combined in one
entity (0).
"Gazprom reports for relevant year and website material.
Country oil production MM
Barrels 3,565 3,486 3,565 3,641 3,609
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country gas production BCF 20,191 20,486 20,971 20,906 21,190 BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country MMBOE
production 7,046 7,018 7,181 7,245 7,262 CEE calculation
NOC MMBOE Domestic
Production 3,595 4,153 4,372 4,465 4,433
http://www.gazprom.com/f/posts/71/879403/2009_0
7_07_gazprom_databook_update.xls
Non-NOC percentage of oil and gas production (%)
49.0 40.8 39.1 38.4 39.0 CEE calculation. NOC volumes include Rosneft and Gazprom production.
Country Refinery Capacity - 000 BPD
5,371 5,421 5,473 5,522 5,547 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Net NOC Refinery Capacity - 000 BPD (country level)
367 781 1,179 1,577 1,796
Gazprom 2009 databook. Source: see cell H52. Also
includes Rosneft refinery volumes from Rosneft financial statements for relevant years available at
www.rosneft.com
Non-NOC percentage of
refinery capacity (%, country level)
93.2 85.6 78.5 71.4 67.6 CEE calculation. NOC volumes include Rosneft and
Gazprom production.
Total Revenues (local
currency MM) 976,776 1,383,545 2,152,111 2,423,245 3,518,960 Gazprom 2009 databook.
Royalties and production
taxes (local currency MM) 376,051 501,822 793,799 759,500 1,078,801 Gazprom 2009 databook.
Income taxes (local
currency MM) 64,392 172,378 233,334 220,730 337,648 Gazprom 2009 databook.
Dividends paid to government (local currency
MM)
14,672 23,858 34,233 59,765 62,614 Gazprom Consolidated IFRS Financial Results for
relevant years available at www.gazprom.com
Royalties, production taxes, income taxes and dividends
paid to government by NOC
as percentage of total revenues (%)
46.6 50.5 49.3 42.9 42.0 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 3.15 3.06
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of taxation regime on
decision to invest
No
survey
No
survey
No
survey 3.13 2.71
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of cost of regulatory
compliance on decision to
invest
No survey
No survey
No survey
3.54 3.07 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of regulatory
uncertainty on decision to invest
No
survey
No
survey
No
survey 3.76 3.41
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of environmental regulations on decision to
invest
No
survey
No
survey
No
survey 2.64 2.73
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
26
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public
documentation of NOC objectives (0).
Gazprom reports and fact books for relevant years
available at www.gazprom.com
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream production
operated by specific NOC. If
no data yes-1/no-0.
1 1 1 1 1 % operated not disclosed but company appears to be
a substantial operating entity
Percentage of NOC domestic refining production operated
by specific NOC. If no data
yes-1/no-0.
1 1 1 1 1 % operated not disclosed but company appears to be
a substantial operating entity
NOC upstream capital
expenditures as percentage
of total capital expenditures (%)
39.6 33.4 38.5 43.7 43.3 Gazprom reports for relevant year and website
material.
NOC refining capital
expenditures as percentage of total capital expenditures
(%)
5.0 4.6 4.3 6.7 6.9 Gazprom reports for relevant year and website material.
NOC upstream oil equity
production as percentage of total NOC refining
throughput (%). If no data,
yes/no.
9.0 65.0 104.0 99.0 89.0 Gazprom reports for relevant year and website
material.
NOC international revenues
as percentage of total NOC
revenues (%). If no data yes-1/no-0.
1 1 1 1 1 Gazprom reports for relevant year and website
material..
Joint ventures between the NOC and third parties
100 100 100 100 100
Scoring: NOC partnerships/JVs exist domestically
and internationally (100); NOC partnerships exist
domestically but not internationally (66); NOC partnerships exist internationally but not
domestically (33); NOC partnerships, JVs, alliances
do not exist (0).
Gazprom reports for relevant year and website
material.
NOC CORPORATE GOVERANCE
Percentage of non-
government ownership of
specific NOC (%)
62.0 50.0 50.0 50.0 50.0 Gazprom reports for relevant year and website material.
Percentage of independent
BOD members (%) 20.0 20.0 20.0 20.0 20.0
Gazprom reports for relevant year and website
material.
Appointment authority for
NOC chairman and chief executive officer
0 0 0 0 0
Scoring: (100)-The government has no participation in deciding who will fill the positions of
Chairman/CEO; (50)-The government through its
control of required voting shares can influence, directly or indirectly, the appointments of
Chairman/CEO and (0) The Chairman and/or CEO
is a direct appointee of the government entity
Gazprom reports for relevant year and website
material.
Independence of NOC
capital and budget processes 75 75 75 75 75
Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC
budget required but certain capital expenditures
require state approval (75);NOC budget is proposed to and approved by one central government entity
(50); NOC budget is proposed to and approved by
27
multiple central government entities (25); NOC
budget is part of the national budget (0).
Gazprom reports for relevant year and website
material.
NOC net cash flow after
taxes and dividends (local currency MM)
167,478 248,759 509,855 538,743 953,937 Gazprom reports for relevant year and website
material.
NOC capital expenditures
(local currency MM) 241,437 352,620 485,640 576,885 801,331
Gazprom reports for relevant year and website
material.
NOC financial sustainability (%)
69.4 70.5 105.0 93.0 119.0
Measured by net cash flow after taxes and dividends as percentage of capital expenditures %
CEE Calculation
NOC financial transparency 100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange (100); FS
auditing performed and publicly disclosed by
independent international auditor (75); FS auditing performed and publicly disclosed by independent
domestic or government auditor (50) ; FS auditing
performed internally by N OC and publicly disclosed (25); No publicly available auditing (0)
Gazprom reports for relevant year and website material.
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing performed
by independent international firm and files reports
with international exchange (100); reserves auditing performed and publicly disclosed by independent
international firm (75); reserves auditing performed
and publicly disclosed by independent domestic firm (50) ; reserves auditing performed internally
and publicly disclosed (25); No publicly available reserves auditing (0).
Gazprom reports for relevant year and website material.
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
28
5. Gaz de France S.A. (France)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 270.00 232.84 175.28 172.80 211.52
Company oil production MM Bbls 13.20 11.60 13.50
E&P production (BOE) MM BOE 48.12 41.50 44.44 42.40 51.20
E&P production growth % 17.14 -13.76 7.09 -4.59 20.75
Total net additions proved oil reserves MM Bbls 12.30 9.40 45.40
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE 16.50 8.80 15.80
Reserve additions (BOE) MM BOE 73.94 98.71 28.80 18.20 61.20
Reserves replacement rate % 153.64 237.86 64.80 42.92 119.53
Primary distillation capacity MBPD
Total refining throughput MBPD
Refinery utilization rate %
Assets in USD MM 39,689.12 49,684.38 53,876.54 108,443.83 245,929.53
Output / total assets BOE/000$ 1.21 0.84 0.82 0.39 0.21
Employees # of people 38,088.00 52,958.00 50,244.00 47,560.00 199,964.00
Output / total employees BOE/000$ 1.26 0.78 0.88 0.89 0.26
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) MM 2,328.00 2,916.00 3,719.00 8,182.00 9,001.00
Direct expenditures on social/economic development programs (national currency)
MM 2.00 5.90 7.10 5.00 37.00
Total revenue (national currency) MM 18,206.00 22,872.00 27,642.00 27,427.00 67,923.80
EBRTN MM 2,918.00 3,724.90 8,189.10 8,187.00 9,038.00
EBRTN / revenues % 16.03 16.29 29.63 29.85 13.31
EBRTN / total assets % 9.15 9.33 19.08 10.35 5.41
Total capital expenditures (national currency) MM 1,847.00 2,463.00 3,456.00 4,638.00 9,848.00
net cash flow after taxes and dividends MM 2,933.00 2,830.00 4,164.00 4,806.00 2,396.00
NCF/CAPEX % 158.80 114.90 120.49 103.62 24.33
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 25,138.08 33,929.00 34,293.00 31,917.00 101,552.00
Total number of NOC non-local employees # of people 12,949.92 19,029.00 15,951.00 15,643.00 98,412.00
Share of nationals in NOC workforce % 66.00 64.07 68.25 67.11 50.79
NOC employment in native country # of people 25,138.08 33,929.00 34,293.00 31,917.00 101,552.00
NOC annual employment growth % 0.55 34.97 1.07 -6.93 218.18
Country Labor Force # of people
(000.000) 27,630.48 27,856.78 28,084.86 28,405.93 28,611.25
Country annual employment growth % 0.87 0.82 0.82 1.14 0.72
NOC - Country employment growth % points -0.32 34.15 0.25 -8.07
NOC employment share of country workforce % 0.09 0.12 0.12 0.11 0.35
NOC local purchases goods and services $ MM 2,609.00 17,306.49 14,944.85
NOC total purchases goods and services $ MM 3,193.09 3,894.03 25,081.87 26,219.04 52,770.83
Share of local content %
67.00 69.00 57.00
NOC noncommercial expenditure (national currency) MM 2.00 5.90 7.10 5.00 37.00
NOC noncommercial expenditure $ MM 2.49 7.34 8.91 6.85 54.42
Noncommercial expenditure/Total expenditure % 0.08 0.19 0.04 0.03 0.10
Net income from non-core commercial business
activities % 35.00 87.00 122.00 423.00 725.00
Net income from total commercial activities $ MM 18,206.00 22,872.00 27,642.00 27,427.00 67,923.80
Net income noncore commercial activities/Net
income % 0.19 0.38 0.44 1.54 1.07
Price subsidies provided by NOC $ MM
Total NOC Revenues $ MM 22,646.44 28,455.06 34,707.30 37,588.70 99,902.33
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE
Country oil consumption MMBOE 721.87 715.48 713.89 701.05 704.29
Domestic output use %
29
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 17.14 -13.76 7.09 -4.59 20.75
Reserves replacement rate (BOE, %) 153.64 237.86 64.80 42.92 119.53
Refinery utilization rate (%)
Output / total assets (BOE/'000$) 1.21 0.84 0.82 0.39 0.21
Output / total employees ('000 BOE) 1.26 0.78 0.88 0.89 0.26
Financial Performance
EBRTN / revenues (%) 16.03 16.29 29.63 29.85 13.31
EBRTN / total assets (%) 9.15 9.33 19.08 10.35 5.41
NCF / CAPEX (%) 158.80 114.90 120.49 103.62 24.33
National Mission Performance
Share of nationals in NOC workforce (%) 66.00 64.07 68.25 67.11 50.79
NOC – Country employment growth (% points) -0.32 34.15 0.25 -8.07
NOC employment share of country workforce (%) 0.09 0.12 0.12 0.11 0.35
Share of local content (%) 67.00 69.00 57.00
Noncommercial expenditures/total expenditures (%) 0.08 0.19 0.04 0.03 0.10
Noncore commercial activities net income/Total net income (%) 0.19 0.38 0.44 1.54 1.07
Price Subsidies/Revenues (%)
Domestic output use (%)
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.35 0.24 0.11 0.23 0.46
E&P production growth 0.73 0.00 0.38 0.37 0.96
Reserves replacement rate 0.68 0.96 0.06 0.55 0.89
Refinery utilization rate
Output / total assets 0.00 0.00 0.00 0.00 0.00
Output / total employees 0.00 0.00 0.00 0.00 0.00
Financial Performance 0.35 0.14 0.23 0.22 0.03
EBRTN / revenues 0.11 0.08 0.24 0.25 0.09
EBRTN / total assets 0.12 0.00 0.04 0.00 0.00
NCF / CAPEX 0.81 0.35 0.41 0.40 0.00
National Mission Performance 0.24 0.43 0.34 0.33 0.29
Share of nationals in NOC workforce 0.59 0.57 0.60 0.59 0.39
NOC employment growth 0.51 1.00 0.57 0.10
NOC employment share of country workforce 0.04 0.06 0.09 0.09 0.30
Share of local content 0.71 0.57 0.57
Noncommercial expenditures/total expenditures 0.03 0.01 0.00 0.00 0.00
Noncore commercial activities net income/Total net income 0.04 0.20 0.21 0.65 0.45
Price Subsidies/Revenues
Domestic output use
VCI 0.31 0.27 0.23 0.26 0.26
30
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource endowment oil MMBBL
148 146 158 122 120 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 140 130 110 100 70
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource endowment MMBOE
1,029 964 850 751 560 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability 1.43 1.47 1.34 1.25 1.24 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability 0.55 0.47 0.51 0.54 0.58 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 1.67 1.57 1.47 1.36 1.54 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality 1.17 1.1 1.12 1.15 1.25 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law 1.43 1.37 1.38 1.35 1.4 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control 1.42 1.39 1.46 1.31 1.43 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as %
of Total Government Revenues
Hydrocarbon Revenues as %
of GDP
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil Imports-
000 BPD
1,737
1,722
1,670
1,646
1,682
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil Imports)
US $ Billion
-23 -32 -37 -42 -58
Imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Gross Domestic Product US $ Billion
2,060
2,150
2,270
2,590
2,860
World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues (Costs) of Oil Exports
(Imports) as % of GDP
-1.11 -1.48 -1.64 -1.60 -2.03 CEE calculation
Government Budget
Surplus/Deficit as % of Gross Domestic Product
-4.15 -3.49 -2.77 -2.24 -2.30 http://www.tradingeconomics.com/Economics/Gove
rnment-Budget.aspx?Symbol=FRF
Stabilization Mechanisms
such as petroleum funds (yes-1/no-0)
0 0 0 0 0 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1 CEE assessment
Institutional structure 100 100 100 100 100
Scoring: Independent NOC, Ministry and regulatory
function (100); Regulatory function is performed by ministry (66); Regulatory function is performed by
NOC (33); All three functions combined in one
entity (0).
Commission de Régulation de l’Énergie,
http://www.cre.fr/en/content/view/full/60
Country oil production MM
Barrels 28 27 27 26 26
US Energy Information Administration,
International Energy Statistics. Http://tonto.eia.doe.gov
Country gas production BCF 49 41 43 38 32 US Energy Information Administration,
International Energy Statistics.
31
Http://tonto.eia.doe.gov
Country MMBOE production
36 34 34 33 32 CEE calculation
NOC MMBOE Domestic Production
Less than 5% of GDF's oil and gas production volumes are of French origin. French production
volumes are not reported separately. See GDF Suez
annual reports for the relevant years available at www.gdfsuez.com/en/finance/investors/publications
Non-NOC percentage of oil
and gas production (%) CEE calculation
Country Refinery Capacity - 000 BPD
1,982
1,978
1,959
1,962
1,962
US Energy Information Administration,
International Energy Statistics.
Http://tonto.eia.doe.gov
Net NOC Refinery Capacity
- 000 BPD (country level) GDF Suez has no refining operations in France
Non-NOC percentage of
refinery capacity (%, country
level)
CEE calculation.
Total Revenues (local currency MM)
17,526 22,394 44,289 47,475 67,924 GDF Suez annual reports for the relevant year at www.gdfsuez.com/en/finance/investors/publications
Royalties and production
taxes (local currency MM)
Royalties and production taxes paid in France are
not reported separately.
Income taxes (local
currency MM) 358 572 48 -348 -520
Based on E&P income taxes paid in France. GDF
Suez annual reports for the relevant year
Dividends paid to
government (local currency
MM)
256 336 1,008 1,211 1,997 GDF Suez annual reports for the relevant year
Royalties, production taxes, income taxes and dividends
paid to government by NOC
as percentage of total
revenues (%)
4 4 2 2 2 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 1.7 2.48
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.7 2.52 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.78 2.09
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of regulatory
uncertainty on decision to invest
No
survey
No
survey
No
survey 1.98 2.1
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.9 2.09 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public
documentation of NOC objectives (0).
GDF Suez annual reports for the relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream production
operated by specific NOC. If
no data yes-1/no-0.
1 1 1 1 1 GDF Suez annual reports for the relevant year
32
Percentage of NOC domestic
refining production operated by specific NOC. If no data
yes-1/no-0.
GDF Suez annual reports for the relevant year
NOC upstream capital expenditures as percentage
of total capital expenditures
(%)
Not reported.
NOC refining capital expenditures as percentage
of total capital expenditures
(%)
Not applicable.
NOC upstream oil equity
production as percentage of
total NOC refining throughput (%). If no data,
yes/no.
Not applicable.
NOC international revenues
as percentage of total NOC
revenues (%). If no data yes-
1/no-0.
30 36 76 75 69 GDF Suez annual reports for the relevant year
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist
domestically but not internationally (66); NOC
partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances
do not exist (0).
GDF Suez annual reports for the relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of
specific NOC (%)
0.0 19.8 19.8 21.2 64.4 GDF Suez annual reports for the relevant year
Percentage of independent BOD members (%)
33.0 33.0 33.0 42.86 GDF Suez annual reports for the relevant year
Appointment authority for
NOC chairman and chief
executive officer
50 50 50 50 36
Scoring: (100)-The government has no participation
in deciding who will fill the positions of Chairman/CEO; (50)-The government through its
control of required voting shares can influence,
directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO
is a direct appointee of the government entity
GDF Suez annual reports for the relevant year
Independence of NOC capital and budget processes
50 50 50 50 75
Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC
budget required but certain capital expenditures
require state approval (75);NOC budget is proposed to and approved by one central government entity
(50); NOC budget is proposed to and approved by
multiple central government entities (25); NOC budget is part of the national budget (0).
GDF Suez annual reports for the relevant year
NOC net cash flow after
taxes and dividends (local currency MM)
2,933 2,830 4,164 4,806 2,396 GDF Suez annual reports for the relevant years
NOC capital expenditures
(local currency MM) 1,847 2,463 3,456 4,638 9,848 GDF Suez annual reports for the relevant years
NOC financial sustainability (%)
159 115 120 104 24
Measured by net cash flow after taxes and dividends as percentage of capital expenditures %
CEE Calculation
NOC financial transparency 100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange (100); FS
auditing performed and publicly disclosed by
independent international auditor (75); FS auditing performed and publicly disclosed by independent
domestic or government auditor (50) ; FS auditing
performed internally by N OC and publicly disclosed (25); No publicly available auditing (0)
33
GDF Suez annual reports for the relevant years
NOC upstream reserves
transparency 30 30 30 35 35
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly disclosed
by independent international firm (75); reserves auditing performed and publicly disclosed by
independent domestic firm (50); reserves auditing
performed internally and publicly disclosed (25); No publicly available reserves auditing (0).
GDF Suez annual reports for the relevant years
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
34
6. Kazmunaigaz Exploration and Production (Kazakhstan)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF
36.61 95.24
Company oil production MM Bbls 65.38 68.64 69.85 71.48 71.03
E&P production (BOE) MM BOE 65.38 68.64 69.85 78.0 88.0
E&P production growth % 13.36 4.99 1.70 11.66 12.82
Total net additions proved oil reserves MM Bbls
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE
Reserve additions (BOE) MM BOE
117.00 138.82 21.76
Reserves replacement rate %
167.14 177.97 24.72
Primary distillation capacity MBPD
Total refining throughput MBPD
Refinery utilization rate %
Assets in USD MM 2,855.51 3,284.04 5,828.67 6,951.05 8,474.90
Output / total assets BOE/000$ 22.76 21.01 12.01 11.22 10.38
Employees # of people 25,272.00 22,322.00 21,113.00 34,000.00 34,000.00
Output / total employees BOE/000$ 2.57 3.09 3.32 2.29 2.59
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) MM 95,433.86 166,613.00 242,868.00 336,503.36 442,524.87
Direct expenditures on social/economic development programs (national currency)
MM 500.00 1,791.55 7,850.40 3,660.17 1,649.10
Total revenue (national currency) MM 237,103.22 348,887.82 412,207.79 486,974.88 604,993.42
EBRTN (national currency) MM 95,933.86 168,404.55 250,718.40 340,163.53 444,173.97
EBRTN / revenues % 40.46 48.27 60.82 69.85 73.42
EBRTN / total assets % 25.20 38.59 34.11 39.93 43.57
Total capital expenditures (national currency) MM 50,525.60 63,726.00 49,286.00 177,252.00 43,708.00
Net cash flow after taxes and dividends MM 71,645.00 106,298.00 150,386.73 138,406.02
NCF/CAPEX %
112.43 215.68 84.84 316.66
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00
NOC employment in native country (# people) # of people 25,019.28 22,098.78 20,901.87 33,660.00 33,660.00
NOC annual employment growth % -11.67 -5.42 61.04 0.00
Country Labor Force # of people
(000,000) 7,802.97 7,960.80 8,128.67 8,302.23 8,470.87
Country annual employment growth % 0.58 2.02 2.11 2.14 2.03
NOC - Country employment growth % points
-13.70 -7.52 58.90 -2.03
NOC employment share of country workforce % 0.32 0.28 0.26 0.41 0.40
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM
270,760.00 243,816.00 388,086.00 340,875.00
Share of local content % 67.30
NOC noncommercial expenditure (national currency) MM 500.00 1,791.55 7,850.40 3,660.17 1,649.10
NOC noncommercial expenditure $ MM
Noncommercial expenditure/Total expenditure % 0.66 3.22 0.94 0.48
Net income from non-core commercial business activities $ MM
Net income from total commercial activities $ MM 100.70 339.21 972.01 2,253.29 2,558.82
Net income noncore commercial activities/Net income %
Price subsidies provided by NOC $ MM
Total NOC Revenues $ MM 237,103.22 348,887.82 412,207.79 486,974.88 604,993.42
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE 15.80 20.50 2.63
Country oil consumption MMBOE 68.10 75.60 82.99 88.97 83.75
Domestic output use % 23.19 27.11 3.17
35
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 13.36 4.99 1.70 11.66 12.82
Reserves replacement rate (BOE, %) 167.14 177.97 24.72
Refinery utilization rate (%)
Output / total assets (BOE/'000$) 22.76 21.01 12.01 11.22 10.38
Output / total employees ('000 BOE) 2.57 3.09 3.32 2.29 2.59
Financial Performance
EBRTN / revenues (%) 40.46 48.27 60.82 69.85 73.42
EBRTN / total assets (%) 25.20 38.59 34.11 39.93 43.57
NCF / CAPEX (%) 112.43 215.68 84.84 316.66
National Mission Performance
Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00
NOC – Country employment growth (% points) -13.70 -7.52 58.90 -2.03
NOC employment share of country workforce (%) 0.32 0.28 0.26 0.41 0.40
Share of local content (%) 67.30
Noncommercial expenditures/total expenditures (%) 0.66 3.22 0.94 0.48
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%)
Domestic output use (%) 23.19 27.11 3.17
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.37 0.21 0.24 0.51 0.34
E&P production growth 0.61 0.06 0.29 0.76 0.72
Reserves replacement rate 0.29 0.92 0.00
Refinery utilization rate
Output / total assets 0.47 0.52 0.35 0.34 0.30
Output / total employees 0.02 0.04 0.04 0.02
Financial Performance 0.42 0.42 0.61 0.54 0.81
EBRTN / revenues 0.45 0.50 0.63 0.75 0.80
EBRTN / total assets 0.39 0.41 0.30 0.54 0.64
NCF / CAPEX 0.34 0.91 0.32 1.00
National Mission Performance 0.41 0.27 0.34 0.59 0.44
Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99
NOC – Country employment growth 0.07 0.41 1.00 0.17
NOC employment share of country workforce 0.15 0.15 0.18 0.33 0.34
Share of local content 0.69
Noncommercial expenditures/total expenditures 0.05 0.13 0.04 0.03
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues
Domestic output use 0.09 0.10 0.00
VCI 0.40 0.30 0.40 0.55 0.53
36
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource endowment oil MMBBL
39,620 39,828 39,828 39,828 39,828 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 1,833 1,833 1,843 1,881 1,822
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource endowment MMBOE
51,149 51,357 51,418 51,661 51,291 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -1.11 -0.94 -1.03 -1.07 -1.01 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability -0.11 0.01 0.15 0.34 0.51 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.67 -0.56 -0.44 -0.54 -0.47 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality -0.59 -0.46 -0.49 -0.45 -0.37 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -1.01 -0.78 -0.9 -0.81 -0.78 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control -1.13 -0.89 -0.85 -0.88 -0.95 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as %
of Total Government Revenues
22 22 38 38 38
"Natural Resource Endowments, Governance, and
the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper,
WP/08/170, July 2008;
http://www.revenuewatch.org/our-work/countries/kazakhstan-transparency.php
Hydrocarbon Revenues as %
of GDP 6 6 11 11 11
"Natural Resource Endowments, Governance, and
the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper,
WP/08/170, July 2008;
http://www.revenuewatch.org/our-work/countries/kazakhstan-transparency.php
WTO membership (yes-
1/no-0) over five years 0 0 0 0 0 www.wto.org
OPEC membership (yes-1/no-0) over five years
0 0 0 0 0 www.opec.org
Country Crude Oil Exports -
000 BPD
1,038
1,147
1,236
1,238
1,178
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil Imports-000 BPD
65 75 129 141 137 2009 OPEC Annual Statistical Bulletin at www.opec.org
(Country Revenues Oil
Exports)-(Costs Oil Imports) US $ Billion
13 20 25 28 36
Imports valued at nominal oil price as reported in
2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Gross Domestic
Product US $ Billion 43 57 81 105 133
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports
(Imports) as % of GDP
30 35 30 26 27 CEE calculation
Government Budget
Surplus/Deficit as % of
Gross Domestic Product
0 3 1 -3 -4
OIC Outlook 08 May 2008 Government Deficit/Surplus in the OIC Member Countries,
Organisation of the Islamic Conference;
http://www.adb.org/Documents/Books/ADO/2010/KAZ.pdf
Stabilization Mechanisms
such as petroleum funds (yes-1/no-0)
1 1 1 1 1 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1
"Energy Policy of Kazakhstan," Ministry of Energy
and Mineral Resources of the Republic of
Kazakhstan, London, 15 March 2006.
Institutional structure 66 66 66 66 66 Scoring: Independent NOC, Ministry and regulatory
function (100); Regulatory function is performed by
37
ministry (66); Regulatory function is performed by
NOC (33); All three functions combined in one entity (0).
Ministry of Energy and Mineral resources website.
Country oil production MM
Barrels 473 495 520 542 567
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country gas production BCF 704 798 843 934 1064 BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country MMBOE
production 594 633 665 703 750 CEE calculation
NOC MMBOE Domestic Production
65 69 70 78 88
KMG EP volumes only. Its parent company, Kazmunaigas (100% state-owned) , has significant
interests in other upstream companies. KMG EP
annual and financial reports and other website information available at www.kmgep.kz/eng/
Non-NOC percentage of oil
and gas production (%) 89 89 89 89 88 CEE calculation
Country Refinery Capacity - 000 BPD
427 345 345 345 345
US Energy Information Administration,
International Energy Statistics.
Http://tonto.eia.doe.gov
Net NOC Refinery Capacity - 000 BPD (country level)
0 0 0 0 0
KMG EP does not have refining assets. Its parent
company, NG KMG, controls about two-thirds of
the country's refining capacity.
Non-NOC percentage of refinery capacity (%, country
level)
100 100 100 100 100 CEE calculation.
Total Revenues (local currency MM)
348,888 412,208 486,974 604,993 KMG EP annual and financial reports and other website information
Royalties and production taxes (local currency MM)
22,284 25,518 22,780 31,004 KMG EP annual and financial reports and other website information
Income taxes (local
currency MM) 99,193 94,673 150,511 167,091
Based on E&P income taxes paid in Kazakhstan.
KMG EP annual and financial reports and other website information
Dividends paid to
government (local currency
MM)
3,409 15,912 22,574 25,448 KMG EP annual and financial reports and other website information
Royalties, production taxes,
income taxes and dividends
paid to government by NOC as percentage of total
revenues (%)
36 33 40 37 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 2.21 2.73
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.7 2.7 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to
invest
No
survey
No
survey
No
survey 2.79 2.78
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 3.09 3.2
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.61 2.33 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 50 50 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
38
(50); Objectives publicly disclosed but not ranked
and not publicly measured (25); No public
documentation of NOC objectives (0).
KMG EP annual and financial reports and other
website information
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic
upstream production operated by specific NOC. If
no data yes-1/no-0.
1 1 1 1 1 KMG EP annual and financial reports and other website information
Percentage of NOC domestic refining production operated
by specific NOC. If no data
yes-1/no-0.
0 0 0 0 0 KMG EP annual and financial reports and other
website information
NOC upstream capital expenditures as percentage
of total capital expenditures
(%)
100.0 100.0 100.0 100.0 100.0 KMG EP annual and financial reports and other
website information
NOC refining capital
expenditures as percentage
of total capital expenditures (%)
Company does not have refining operations. KMG EP annual and financial reports and other website
information available at www.kmgep.kz/eng/.
NOC upstream oil equity
production as percentage of
total NOC refining throughput (%). If no data,
yes/no.
Not applicable.
NOC international revenues
as percentage of total NOC revenues (%). If no data yes-
1/no-0.
0 0 0 0 0
In December 2008, KMG EP signed an international upstream cooperation agreement with BG Group.
NG KMG has international operations. KMG EP
annual and financial reports and other website information available at www.kmgep.kz/eng/
Joint ventures between the NOC and third parties
66 66 66 66 66
Scoring: NOC partnerships/JVs exist domestically
and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC
partnerships exist internationally but not
domestically (33); NOC partnerships, JVs, alliances
do not exist (0).
KMG EP annual and financial reports for the
relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
0.0 0.0 38.0 38.0 38.0 KMG EP annual and financial reports for the
relevant year
Percentage of independent BOD members (%)
0 0 37.5 37.5 37.5 KMG EP annual and financial reports for the relevant year
Appointment authority for NOC chairman and chief
executive officer
0 0 50 50 50
Scoring: (100)-The government has no participation
in deciding who will fill the positions of
Chairman/CEO; (50)-The government through its control of required voting shares can influence,
directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO
is a direct appointee of the government entity
KMG EP annual and financial reports for the
relevant year
Independence of NOC
capital and budget processes 50 50 50 50 50
Scoring: No governmental approval of NOC budget
required (100); No governmental approval of NOC
budget required but certain capital expenditures require state approval (75);NOC budget is proposed
to and approved by one central government entity
(50); NOC budget is proposed to and approved by multiple central government entities (25); NOC
budget is part of the national budget (0).
KMG EP annual and financial reports for the
relevant year
NOC net cash flow after
taxes and dividends (local 71,645 106,298 150,387 138,406
KMG EP annual and financial reports for the
relevant year
39
currency MM)
NOC capital expenditures (local currency MM)
63,726 49,286 177,252 43,708 KMG EP annual and financial reports for the relevant year
NOC financial sustainability
(%) 112 216 85 317
Measured by net cash flow after taxes and dividends
as percentage of capital expenditures %
CEE Calculation
NOC financial transparency 25 25 100 100 100
Scoring: NOC financial statement auditing performed by independent international auditor and
files reports with international exchange (100); FS
auditing performed and publicly disclosed by independent international auditor (75); FS auditing
performed and publicly disclosed by independent
domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly
disclosed (25); No publicly available auditing (0)
KMG EP annual and financial reports for the
relevant year
NOC upstream reserves
transparency 0 0 0 0 100
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and
files reports with international exchange (100);
reserves auditing performed and publicly disclosed by independent international firm (75); reserves
auditing performed and publicly disclosed by
independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25);
No publicly available reserves auditing (0).
KMG EP annual and financial reports for the
relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
40
7. Oil and Gas Development Corporation Ltd (Pakistan)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 297.22 345.95 344.16 344.03 358.87
Company oil production MM Bbls 9.94 13.05 12.96 13.93 15.04
E&P production (BOE) MM BOE 58.00 70.00 75.59 76.54 80.35
E&P production growth % 8.99 20.69 7.99 1.26 4.97
Total net additions proved oil reserves MM Bbls
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE
Reserve additions (BOE) MM BOE
Reserves replacement rate %
Primary distillation capacity MBPD
Total refining throughput MBPD
Refinery utilization rate %
Assets $ MM 1,822.17 2,076.35 2,157.88 2,255.06 2,261.11
Output / total assets BOE/000$ 31.83 33.70 35.03 33.94 35.54
Employees # of people 11,872.00 11,708.00 11,000.00 11,335.00 10,961.00
Output / total employees BOE/000$ 4.89 5.98 6.87 6.75 7.33
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 37.18 57.10 76.76 71.75 95.31
Direct expenditures on social/economic development programs (national currency)
Bn
Total revenue (national currency) Bn 52.62 74.85 97.31 100.73 125.91
EBRTN Bn 31.45 48.85 65.82 60.81 77.99
EBRTN / revenues % 59.77 65.26 67.63 60.37 61.94
EBRTN / total assets % 29.97 39.62 50.94 44.47 51.20
Total capital expenditures (national currency) Bn 4.40 8.17 10.16 16.48 18.35
net cash flow after taxes and dividends Bn 7.90 11.81 11.74 4.31 16.87
NCF/CAPEX % 179.38 144.59 115.55 26.15 91.94
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00
NOC employment in native country (# people) # of people
11,753.28
11,590.92
10,890.00
11,221.65
10,851.39
Country annual employment growth % 4.18 5.29 5.07 2.29 2.60
NOC - Country employment growth % points -5.18 -6.67 -11.12 0.76 -5.90
NOC annual employment growth % -1.00 -1.38 -6.05 3.05 -3.30
Country Labor Force # of people (000,000)
48,095.08 50,637.12 53,205.85 54,421.95 55,836.77
NOC employment share of country workforce % 0.02 0.02 0.02 0.02 0.02
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM
Share of local content %
NOC noncommercial expenditure (national currency) MM
NOC noncommercial expenditure $ MM
Noncommercial expenditure/Total expenditure %
Net income from non-core commercial business
activities %
Net income from total commercial activities $ MM
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ Bn
Total NOC Revenues $ Bn 0.91 1.26 1.63 1.66 1.87
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE
Country oil consumption MMBOE 118.63 113.88 129.94 141.62 141.99
Domestic output use %
41
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 8.99 20.69 7.99 1.26 4.97
Reserves replacement rate (BOE, %)
Refinery utilization rate (%)
Output / total assets (BOE/'000$)
31.83
33.71
35.03
33.94
35.54
Output / total employees ('000 BOE)
4.89
5.98
6.87
6.75
7.33
Financial Performance
EBRTN / revenues (%) 59.77 65.26 67.63 60.37 61.94
EBRTN / total assets (%) 29.97 39.62 50.94 44.47 51.20
NCF / CAPEX (%) 179.38 144.59 115.55 26.15 91.94
National Mission Performance
Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00
NOC – Country employment growth (% points) -5.18 -6.67 -11.12 0.76 -5.90
NOC employment share of country workforce (%) 0.02 0.02 0.02 0.02 0.02
Share of local content (%)
Noncommercial expenditures/total expenditures (%)
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%)
Domestic output use (%)
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.41 0.35 0.51 0.55 0.54
E&P production growth 0.50 0.10 0.39 0.51 0.48
Reserves replacement rate
Refinery utilization rate
Output / total assets 0.66 0.85 1.06 1.06 1.06
Output / total employees 0.07 0.09 0.09 0.08 0.09
Financial Performance 0.70 0.55 0.57 0.44 0.55
EBRTN / revenues 0.72 0.72 0.72 0.63 0.67
EBRTN / total assets 0.47 0.42 0.59 0.62 0.77
NCF / CAPEX 0.91 0.51 0.39 0.07 0.23
National Mission Performance 0.45 0.40 0.45 0.41 0.37
Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99
NOC - Country employment growth 0.35 0.21 0.34 0.22 0.12
NOC employment share of country workforce 0.01 0.01 0.01 0.02 0.02
Share of local content
Noncommercial expenditures/total expenditures
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues
Domestic output use
VCI 0.52 0.43 0.51 0.47 0.49
42
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 297 326 342 359 289
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 798 852 847 850 843
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 5,317 5,685 5,669 5,705 5,952 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -1.2 -1.05 -0.98 -1.06 -1.01 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability -1.68 -1.7 -1.94 -2.39 -2.61 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.58 -0.55 -0.53 -0.6 -0.73 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality -0.89 -0.59 -0.44 -0.56 -0.47 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.88 -0.89 -0.95 -0.95 -0.92 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control -1.05 -0.99 -0.76 -0.82 -0.77 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as %
of Total Government Revenues
3.0 3.0 3.0 3.0 3.0
"Management of Oil and Gas in Pakistan," by Dr.
Gulfaraz Ahmed, World Bank Conference on Oil and Gas in Federal Systems, March 2010.
Hydrocarbon Revenues as % of GDP
0.3 0.3 0.3 0.3 0.3
"Management of Oil and Gas in Pakistan," by Dr.
Gulfaraz Ahmed, World Bank Conference on Oil
and Gas in Federal Systems, March 2010.
WTO membership (yes-
1/no-0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -
000 BPD
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil Imports-
000 BPD 26 28 30 32 32
"Management of Oil and Gas in Pakistan," by Dr.
Gulfaraz Ahmed, World Bank Conference on Oil
and Gas in Federal Systems, March 2010.
(Country Revenues Oil
Exports)-(Costs Oil Imports) US $ Billion
0 -1 -1 -1 -1
Imports valued at nominal oil price as reported in
2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Gross Domestic
Product US $ Billion 98 110 128 143 165
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports
(Imports) as % of GDP
-0.3 -0.5 -0.5 -0.6 -0.7 CEE calculation
Government Budget Surplus/Deficit as % of
Gross Domestic Product
3.7 2.3 3.3 4.3 4.3 http://www.tradingeconomics.com/Economics/Gove
rnment-Budget.aspx?Symbol=PKR
Stabilization Mechanisms such as petroleum funds
(yes-1/no-0)
0 0 0 0 0 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1
Federal Legislative List Part I and Part II.
"Management of Oil and Gas in Pakistan," by Dr.
Gulfaraz Ahmed, World Bank Conference on Oil
and Gas in Federal
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and regulatory
function (100); Regulatory function is performed by
ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one
entity (0).
"Management of Oil and Gas in Pakistan," by Dr.
Gulfaraz Ahmed, World Bank Conference on Oil and Gas in Federal
43
Country oil production MM
Barrels 23.8 22.8 26 24.2 28.4
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country gas production BCF 1,214 1,254 1,276 1,288 1,321 BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country MMBOE
production 233 239 246 246 256 CEE calculation
NOC MMBOE Domestic Production
58 70 71 72 76 OGDCL annual reports for relevant year available at www.ogdcl.com
Non-NOC percentage of oil and gas production (%)
75.1 70.7 71.1 70.8 70.3 CEE calculation
Country Refinery Capacity -
000 BPD 276 276 276 276 276
http://www.pump-zone.com/global-news/pakistan-
revives-250000-barrel-per-day-khalifa-refinery.html
Net NOC Refinery Capacity
- 000 BPD (country level) 0 0 0 0 0
OGDCL annual reports for relevant year available at
www.ogdcl.com
Non-NOC percentage of
refinery capacity (%, country
level)
100.0 100.0 100.0 100.0 100.0 CEE calculation.
Total Revenues (local
currency MM) 51,330 73,710 96,760 100,260 125,450 OGDCL annual reports for relevant year
Royalties and production
taxes (local currency MM) 5,570 8,110 10,872 10,936 17,320 OGDCL annual reports for relevant year
Income taxes (local currency MM)
8,101 16,052 19,944 15,500 33,969 Based on E&P income taxes paid in Pakistan. OGDCL annual reports for relevant year
Dividends paid to
government (local currency MM)
16,340 27,421 32,904 32,904 34,731 OGDCL annual reports for relevant year
Royalties, production taxes,
income taxes and dividends
paid to government by NOC
as percentage of total
revenues (%)
58.5 70.0 65.9 59.2 68.6 CEE Calculation
Effect of contract terms on investment decisions
No survey
No survey
No survey
3.33 1.98 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of taxation regime on
decision to invest
No
survey
No
survey
No
survey 3.20 2.20
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of cost of regulatory compliance on decision to
invest
No
survey
No
survey
No
survey 2.60 2.00
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of regulatory
uncertainty on decision to
invest
No survey
No survey
No survey
2.34 2.40 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of environmental
regulations on decision to
invest
No
survey
No
survey
No
survey 3.00 2.00
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are
publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked
and not publicly measured (25); No public
documentation of NOC objectives (0).
OGDCL annual reports for relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic
upstream production 75.0 75.0 78.0 82.0 86.0 OGDCL annual reports for relevant year
44
operated by specific NOC. If
no data yes-1/no-0.
Percentage of NOC domestic refining production operated
by specific NOC. If no data
yes-1/no-0.
OGDCL has no refining operations
NOC upstream capital
expenditures as percentage
of total capital expenditures (%)
100.0 100.0 100.0 100.0 100.0 OGDCL annual reports for relevant year
NOC refining capital
expenditures as percentage
of total capital expenditures (%)
OGDCL has no refining operations
NOC upstream oil equity
production as percentage of total NOC refining
throughput (%). If no data,
yes/no.
OGDCL has no refining operations
NOC international revenues as percentage of total NOC
revenues (%). If no data yes-
1/no-0.
0 0 0 0 0 OGDCL annual reports for relevant year
Joint ventures between the NOC and third parties
66 66 66 66 66
Scoring: NOC partnerships/JVs exist domestically
and internationally (100); NOC partnerships exist
domestically but not internationally (66); NOC partnerships exist internationally but not
domestically (33); NOC partnerships, JVs, alliances
do not exist (0).
OGDCL annual reports for relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of specific NOC (%)
7.98 7.98 7.98 14.8 14.8 OGDCL annual reports for relevant year
Percentage of independent
BOD members (%) 70.0 70.0 72.7 OGDCL annual reports for relevant year
Appointment authority for
NOC chairman and chief executive officer
0 0 0 0 0
Scoring: (100)-The government has no participation
in deciding who will fill the positions of
Chairman/CEO; (50)-The government through its
control of required voting shares can influence, directly or indirectly, the appointments of
Chairman/CEO and (0) The Chairman and/or CEO
is a direct appointee of the government entity
OGDCL annual reports for relevant year
Independence of NOC
capital and budget processes 75 75 75 75 75
Scoring: No governmental approval of NOC budget
required (100); No governmental approval of NOC
budget required but certain capital expenditures require state approval (75);NOC budget is proposed
to and approved by one central government entity
(50); NOC budget is proposed to and approved by multiple central government entities (25); NOC
budget is part of the national budget (0).
OGDCL annual reports for relevant year
NOC net cash flow after
taxes and dividends (local currency MM)
7,900 11,809 11,737 4,310 16,868 OGDCL annual reports for relevant year
NOC capital expenditures
(local currency MM) 4,404 8,167 10,157 16,477 18,347 OGDCL annual reports for relevant year
NOC financial sustainability (%)
179.4 144.6 115.6 26.2 91.9
Measured by net cash flow after taxes and dividends as percentage of capital expenditures %
CEE Calculation
45
NOC financial transparency 75 75 75 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange (100); FS
auditing performed and publicly disclosed by
independent international auditor (75); FS auditing performed and publicly disclosed by independent
domestic or government auditor (50) ; FS auditing
performed internally by N OC and publicly disclosed (25); No publicly available auditing (0)
OGDCL annual reports for relevant year
NOC upstream reserves
transparency 0 0 0 0 0
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and
files reports with international exchange (100); reserves auditing performed and publicly disclosed
by independent international firm (75); reserves
auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing
performed internally and publicly disclosed (25);
No publicly available reserves auditing (0).
OGDCL annual reports for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
46
8. Oil and Natural Gas Corporation Ltd (India)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 728.73 723.65 716.80 956.74 986.60
Company oil production MM Bbls 213.00 201.00 214.00 212.00 202.00
E&P production (BOE) MM BOE 392.00 375.00 387.00 388.00 377.00
E&P production growth % 0.20 -4.34 3.20 0.26 -2.84
Total net additions proved oil reserves MM Bbls 277.14 166.33 174.56 181.51 136.97
Total net additions proved gas reserves BCF 210.88 172.97 1,143.93 970.01 1,131.75
Total net additions proved gas reserves MM BOE 38.38 31.48 208.20 176.54 205.98
Reserve additions (BOE) MM BOE 286.00 102.00 585.00 533.00 343.00
Reserves replacement rate % 72.96 27.20 151.16 137.37 90.98
Primary distillation capacity MBPD 194.00 194.00 194.00 194.00 194.00
Total refining throughput MBPD 240.00 242.34 250.64 250.94 251.72
Refinery utilization rate % 123.71 124.92 129.20 129.35 129.75
Assets $ MM 15,893.30 17,844.82 20,548.91 27,506.04 27,257.77
Output / total assets BOE/000$ 30.18 25.97 23.29 17.44 17.20
Employees # of people 36,185.00 34,722.00 33,810.00 32,996.00 33,035.00
Output / total employees BOE/000$ 13.25 13.35 14.15 14.53 14.19
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 288.03 382.55 416.90 492.87 551.57
Direct expenditures on social/economic development programs (national currency)
MM 973.73 1,080.29 1,173.22 1,252.62 1,209.47
Total revenue (national currency) Bn 472.45 622.39 742.34 862.76 1,018.35
EBRTN Bn 289.00 383.63 418.08 494.12 552.78
EBRTN / revenues % 61.17 61.64 56.32 57.27 54.28
EBRTN / total assets % 40.47 48.56 44.96 44.62 44.10
Total capital expenditures (national currency) Bn 81.01 104.03 113.83 135.66 168.14
net cash flow after taxes and dividends Bn 118.52 139.89 154.20 213.26 224.59
NCF/CAPEX % 146.30 134.47 135.46 157.20 133.57
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 36,185.00 34,722.00 33,810.00 32,996.00 33,035.00
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00
NOC employment in native country (# people) # of people 35,823.15 34,374.78 33,471.90 32,666.04 32,704.65
NOC annual employment growth % -4.04 -2.63 -2.41 0.12
Country Labor Force # of people
(000,000) 414,900.00 423,300.00 432,000.00 440,900.00 449,900.00
Country annual employment growth % 1.69 2.02 2.06 2.06 2.04
NOC - Country employment growth % points
-6.07 -4.68 -4.47 -1.92
NOC employment share of country workforce % 0.01 0.01 0.01 0.01 0.01
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM 152,408.00 273,405.00 347,078.00 400,235.00 514,241.00
Share of local content %
NOC noncommercial expenditure (national currency) MM 973.73 1,080.29 1,173.22 1,252.62 1,209.47
NOC noncommercial expenditure $ MM 21.67 24.40 25.93 31.11 26.30
Noncommercial expenditure/Total expenditure % 0.64 0.40 0.34 0.31 0.24
Net income from non-core commercial business
activities %
Net income from total commercial activities $ MM 2,889.61 3,253.63 3,456.99 4,148.44 3,506.48
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ MM 501.00 2,337.00 3,302.00 7,899.00 6,184.00
Total NOC Revenues $ MM 10,515.33 14,058.91 16,405.30 21,429.76 22,142.84
Price Subsidies/Revenues % 4.76 16.62 20.13 36.86 27.93
NOC domestic petroleum products production MMBOE 202.00 212.00 214.00 201.00 213.00
Country oil consumption MMBOE 880.85 896.85 965.13 1,031.31 1,065.14
Domestic output use % 22.93 23.64 22.17 19.49 20.00
47
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 0.20 -4.34 3.20 0.26 -2.84
Reserves replacement rate (BOE, %) 72.96 27.20 151.16 137.37 90.98
Refinery utilization rate (%) 123.71 124.92 129.20 129.35 129.75
Output / total assets (BOE/'000$) 30.18 25.97 23.29 17.44 17.20
Output / total employees ('000 BOE) 13.25 13.35 14.15 14.53 14.19
Financial Performance
EBRTN / revenues (%) 61.17 61.64 56.32 57.27 54.28
EBRTN / total assets (%) 40.47 48.56 44.96 44.62 44.10
NCF / CAPEX (%) 146.30 134.47 135.46 157.20 133.57
National Mission Performance
Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00
NOC - Country employment growth (% points) -6.07 -4.68 -4.47 -1.92
NOC employment share of country workforce (%) 0.01 0.01 0.01 0.01 0.01
Share of local content (%)
Noncommercial expenditures/total expenditures (%) 0.64 0.40 0.34 0.31 0.24
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%) 4.76 16.62 20.13 36.86 27.93
Domestic output use (%) 22.93 23.64 22.17 19.49 20.00
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.51 0.43 0.49 0.60 0.51
E&P production growth 0.25 0.03 0.31 0.49 0.24
Reserves replacement rate 0.44 0.26 0.25 0.81 0.63
Refinery utilization rate 1.00 1.00 1.00 1.00 1.00
Output / total assets 0.63 0.65 0.70 0.54 0.51
Output / total employees 0.22 0.22 0.21 0.18 0.18
Financial Performance 0.71 0.56 0.52 0.62 0.53
EBRTN / revenues 0.73 0.67 0.58 0.59 0.58
EBRTN / total assets 0.65 0.55 0.49 0.63 0.65
NCF / CAPEX 0.75 0.45 0.49 0.63 0.37
National Mission Performance 0.29 0.31 0.43 0.37 0.38
Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99
NOC – Country employment growth 0.22 0.47 0.14 0.18
NOC employment share of country workforce 0.00 0.00 0.01 0.01 0.01
Share of local content
Noncommercial expenditures/total expenditures 0.22 0.03 0.01 0.01 0.01
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues 0.16 0.53 1.00 1.00 1.00
Domestic output use 0.08 0.08 0.10 0.07 0.13
VCI 0.50 0.43 0.48 0.53 0.48
48
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 5,565 5,919 5,693 5,459 5,798
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 923 1,101 1,075 1,055 1,090
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 11,371
12,84
4 12,454 12,095 12,654 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability 0.42 0.42 0.47 0.41 0.45
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -0.90 -0.74 -0.90 -0.98 -0.99 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.08 -0.12 -0.04 0.05 -0.03
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality -0.35 -0.21 -0.19 -0.22 -0.21 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law 0.08 0.18 0.21 0.13 0.12 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control -0.34 -0.34 -0.23 -0.39 -0.37 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as
% of Total Government Revenues
Hydrocarbon Revenues as
% of GDP
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil
Imports-000 BPD 1,936 2,053 2,207 2,412 2,553
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil
Imports) US $ Billion
-25 -38 -49 -61 -88
Imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Gross Domestic Product US $ Billion
701 810 915 1,180 1,160 World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports (Imports) as % of GDP
-3.63 -4.68 -5.38 -5.15 -7.59 CEE calculation
Government Budget
Surplus/Deficit as % of Gross Domestic Product
-3.69 -3.29 -3.27 -2.67 -1.00 http://www.tradingeconomics.com/Economics/G
overnment-Budget.aspx?Symbol=INR
Stabilization Mechanisms
such as petroleum funds (yes-1/no-0)
0 0 0 0 0 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1 Ministry of Petroleum and Natural Gas website at http://petroleum.nic.in
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function
is performed by NOC (33); All three functions
combined in one entity (0).
Ministry of Petroleum and Natural Gas website
at http://petroleum.nic.in
Country oil production
MM Barrels 282 269 278 281 279
BP Statistical Review of World Energy June
2009 available at http://www.bp.com/statisticalreview
49
Country gas production
BCF 1,030 1,046 1,034 1,062 1,077
BP Statistical Review of World Energy June
2009 available at http://www.bp.com/statisticalreview
Country MMBOE
production 460 449 456 464 465 CEE calculation
NOC MMBOE Domestic
Production 392 375 387 388 377
ONGC annual reports for relevant year available
at www.ongcindia.com
Non-NOC percentage of
oil and gas production (%) 14.7 16.5 15.2 16.4 18.9 CEE calculation
Country Refinery Capacity
- 000 BPD
2,558
2,558
2,872
2,983
2,992
http://www.pump-zone.com/global-news/pakistan-revives-250000-barrel-per-day-
khalifa-refinery.html
Net NOC Refinery
Capacity - 000 BPD (country level)
250
250
250
250
250 ONGC annual reports for relevant year
Non-NOC percentage of
refinery capacity (%, country level)
90.2 90.2 91.3 91.6 91.6 CEE calculation.
Total Revenues (local
currency MM) 472,454 494,397 590,575 615,426 650,494 ONGC annual reports for relevant year
Royalties and production
taxes (local currency MM) 96,836 93,739 115,191 120,809 93,445 ONGC annual reports for relevant year
Income taxes (local
currency MM) 66,825 74,063 80,273 85,330 78,544
Based on E&P income taxes paid in India.
ONGC annual reports for relevant year
Dividends paid to government (local
currency MM)
47,952 54,144 56,558 59,256 59,256 ONGC annual reports for relevant year
Royalties, production
taxes, income taxes and dividends paid to
government by NOC as
percentage of total revenues (%)
44.8 44.9 42.7 43.1 35.5 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 1.84
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.14
Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.75
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 2.72
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.4
Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No
public documentation of NOC objectives (0).
ONGC annual reports for relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream
production operated by
specific NOC. If no data yes-1/no-0.
1 1 1 1 1
% operated not disclosed in annual reports but
company appears to be a substantial operating
entity
Percentage of NOC
domestic refining 100.0 100.0 100.0 100.0 100.0 ONGC annual reports for relevant year
50
production operated by
specific NOC. If no data yes-1/no-0.
NOC upstream capital
expenditures as percentage of total capital
expenditures (%)
Not reported
NOC refining capital
expenditures as percentage of total capital
expenditures (%)
Not reported
NOC upstream oil equity production as percentage
of total NOC refining
throughput (%). If no data, yes/no.
208.0 211.0 194.0 208.0 208.0 ONGC annual reports for relevant year
NOC international
revenues as percentage of
total NOC revenues (%). If
no data yes-1/no-0.
1 1 1 1 1 ONGC annual reports for relevant year
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist
domestically and internationally (100); NOC partnerships exist domestically but not
internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0).
ONGC annual reports for relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
25.86 16.90 15.77 15.77 15.77 ONGC annual reports for relevant year
Percentage of independent
BOD members (%) 36.36 41.67 46.15 30.77 47.05 ONGC annual reports for relevant year
Appointment authority for
NOC chairman and chief
executive officer
0 0 0 0 0
Scoring: (100)-The government has no
participation in deciding who will fill the
positions of Chairman/CEO; (50)-The government through its control of required
voting shares can influence, directly or
indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct
appointee of the government entity.
ONGC annual reports for relevant year
Independence of NOC
capital and budget processes
25 25 25 25 25
Scoring: No governmental approval of NOC
budget required (100); No governmental
approval of NOC budget required but certain capital expenditures require state approval
(75);NOC budget is proposed to and approved
by one central government entity (50); NOC budget is proposed to and approved by multiple
central government entities (25); NOC budget is
part of the national budget (0).
ONGC annual reports for relevant year
NOC net cash flow after taxes and dividends (local
currency MM)
118,517 101,966 147,113 169,844 156,020 ONGC annual reports for relevant year
NOC capital expenditures
(local currency MM) 81,011 93,524 96,950 141,578 152,749 ONGC annual reports for relevant year
NOC financial sustainability (%)
146.3 109.0 151.7 120.0 102.1
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures
%
CEE Calculation
NOC financial
transparency 50 50 50 50 50
Scoring: NOC financial statement auditing
performed by independent international auditor
and files reports with international exchange (100); FS auditing performed and publicly
disclosed by independent international auditor
(75); FS auditing performed and publicly disclosed by independent domestic or
government auditor (50) ; FS auditing performed
internally by N OC and publicly disclosed (25); No publicly available auditing (0)
51
ONGC annual reports for relevant year
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75); reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and publicly disclosed (25); No publicly available
reserves auditing (0).
ONGC annual reports for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
52
9. Petróleos de Venezuela, S.A. (Venezuela)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 2,396.59 2,557.92 1,391.00 1,405.00 1,297.00
Company oil production MM Bbls 1,034.05 1,060.69 1,192.00 1,075.00 1,197.00
E&P production (BOE) MM BOE 1,470.22 1,526.23 1,445.16 1,330.71 1,433.05
E&P production growth % 26.39 3.81 -5.31 -7.92 7.69
Total net additions proved oil reserves MM Bbls 723.69 688.00 748.00 405.00
Total net additions proved gas reserves BCF 3,248.92 12,748.00 3,624.00 1,252.00
Total net additions proved gas reserves MM BOE 591.30 2,320.14 659.57 227.86
Reserve additions (BOE) MM BOE 1,314.99 3,008.14 1,407.57 632.86
Reserves replacement rate % 86.16 208.15 105.78 44.16
Primary distillation capacity MBPD 3,102.00 3,102.00 3,102.00 3,098.00 3,035.00
Total refining throughput MBPD 2,854.00 2,854.00 2,854.00 2,521.00 2,441.00
Refinery utilization rate % 92.01 92.01 92.01 81.38 80.43
Assets $ MM 61,847.00 70,365.00 80,529.00 106,894.00 131,832.00
Output / total assets BOE/000$ 40.62 36.49 30.88 21.06 17.63
Employees # of people 64,449.00 59,678.00 68,106.00 77,292.00 80,000.00
Output / total employees BOE/000$ 38.98 43.03 36.51 29.12 29.05
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes $ MM 21,462.00 32,532.00 41,949.00 47,857.00 52,032.00
Direct expenditures on social/economic development programs
$ MM 1,242.00 6,909.00 13,784.00 14,102.00 14,733.00
Total revenue $ MM 62,242.00 82,915.00 99,252.00 96,242.00 126,364.00
EBRTN $ MM 22,704.00 39,441.00 55,733.00 61,959.00 66,765.00
EBRTN / revenues % 36.48 47.57 56.15 64.38 52.84
EBRTN / total assets % 36.71 56.05 69.21 57.96 50.64
Total capital expenditures $ MM 5,385.00 3,939.00 1,748.00 11,066.00 18,413.00
net cash flow after taxes and dividends $ MM 7,490.00 4,278.00 2,328.00 1,151.00 14,452.00
NCF/CAPEX % 139.09 108.61 133.18 10.40 78.49
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 59,211.00 54,305.00 62,723.00 72,152.00 74,900.00
Total number of NOC non-local employees # of people 5,238.00 5,373.00 5,383.00 5,140.00 5,100.00
Share of nationals in NOC workforce % 91.87 91.00 92.10 93.35 93.63
NOC employment in native country (# people) # of people 59,211.00 54,305.00 62,723.00 72,152.00 74,900.00
NOC annual employment growth % -12.72 -8.29 15.50 15.03 3.81
Country Labor Force # of people
(000,000) 11,552.00 11,900.73 12,251.75 12,411.74 12,720.89
Country annual employment growth % 3.11 3.02 2.95 1.31 2.49
NOC - Country employment growth pp -15.83 -11.30 12.55 13.73 1.32
NOC employment share of country workforce % points 0.51 0.46 0.51 0.58 0.59
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM 42,996.00 50,518.00 55,779.00 54,105.00 81,116.00
Share of local content %
NOC noncommercial expenditure (national currency) $ MM
NOC noncommercial expenditure $ MM 1,242.00 6,909.00 13,784.00 14,102.00 14,733.00
Noncommercial expenditure/Total expenditure % 2.89 13.68 24.71 26.06 18.16
Net income from non-core commercial business
activities $ MM
Net income from total commercial activities $ MM 5,406.00 6,483.00 5,452.00 6,273.00 9,413.00
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ MM 9,784.38 15,075.58 18,924.07 22,568.16
Total NOC Revenues $ MM 62,242.00 82,915.00 99,252.00 96,242.00 126,364.00
Price Subsidies/Revenues % 15.72 18.18 19.07 23.45
NOC domestic petroleum products production MMBOE 415.00 433.00 423.00 486.18
Country oil consumption MMBOE 190.84 210.30 221.73 242.79 262.47
Domestic output use % 217.46 205.89 190.78 200.25
53
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 26.39 3.81 -5.31 -7.92 7.69
Reserves replacement rate (BOE, %) 86.16 208.15 105.78 44.16
Refinery utilization rate (%) 92.01 92.01 92.01 81.38 80.43
Output / total assets (BOE/'000$) 40.62 36.49 30.88 21.06 17.63
Output / total employees ('000 BOE) 38.98 43.03 36.51 29.12 29.05
Financial Performance
EBRTN / revenues (%) 36.48 47.57 56.15 64.38 52.84
EBRTN / total assets (%) 36.71 56.05 69.21 57.96 50.64
NCF / CAPEX (%) 139.09 108.61 133.18 10.40 78.49
National Mission Performance
Share of nationals in NOC workforce (%) 91.87 91.00 92.10 93.35 93.63
NOC – Country employment growth (% points) -15.83 -11.30 12.55 13.73 1.32
NOC employment share of country workforce (%) 0.51 0.46 0.51 0.58 0.59
Share of local content (%)
Noncommercial expenditures/total expenditures (%) 2.89 13.68 24.71 26.06 18.16
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%) 15.72 18.18 19.07 23.45
Domestic output use (%) 217.46 205.89 190.78 200.25
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.78 0.53 0.48 0.44 0.37
E&P production growth 1.00 0.05 0.18 0.28 0.56
Reserves replacement rate 0.46 0.39 0.73 0.18
Refinery utilization rate 0.55 0.49 0.34 0.18 0.18
Output / total assets 0.85 0.92 0.93 0.65 0.52
Output / total employees 0.70 0.75 0.55 0.38 0.37
Financial Performance 0.56 0.49 0.65 0.52 0.50
EBRTN / revenues 0.40 0.49 0.57 0.68 0.56
EBRTN / total assets 0.59 0.65 0.91 0.87 0.76
NCF / CAPEX 0.71 0.32 0.48 0.00 0.19
National Mission Performance 0.61 0.64 0.84 0.74 0.66
Share of nationals in NOC workforce 0.90 0.89 0.90 0.92 0.92
NOC - Country employment growth 0.00 0.12 0.81 0.39 0.22
NOC employment share of country workforce 0.23 0.24 0.36 0.47 0.50
Share of local content
Noncommercial expenditures/total expenditures 1.00 1.00 1.00 1.00 1.00
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues 0.53 0.58 0.95 0.64
Domestic output use 0.97 1.00 1.00 1.00
VCI 0.65 0.55 0.66 0.57 0.51
54
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 79,729 80,012 87,324 99,377 172,323
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 4,287 4,315 4,708 4,838 4,983
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 106,694 107,153 116,937 129,808 203,666 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -0.59 -0.61 -0.45 -0.60 -0.62
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -1.20 -1.18 -1.16 -1.20 -1.23 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.90 -0.82 -0.79 -0.87 -0.85
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality -1.12 -1.20 -1.25 -1.56 -1.44 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -1.21 -1.27 -1.38 -1.50 -1.59 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control -1.02 -1.06 -1.01 -1.07 -1.13 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as % of Total Government
Revenues
53.0 53.0 53.0 53.0 53.0
"Natural Resource Endowments, Governance
and the Domestic Revenue Effort," by Fabian Bornhorst, Sanjeev Gupta, and John Thornton,
IMF Working Paper, WP/08/170, July 2008;
www.eia.doe.gov/cabs/Venezuela/pdf.pdf
Hydrocarbon Revenues as
% of GDP 15.0 15.0 25.0 28.0 33.0
"Natural Resource Endowments, Governance
and the Domestic Revenue Effort," by Fabian
Bornhorst, Sanjeev Gupta, and John Thornton, IMF Working Paper, WP/08/170, July 2008;
www.eia.doe.gov/cabs/Venezuela/pdf.pdf
WTO membership (yes-
1/no-0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years
1
1
1
1
1 www.opec.org
Country Crude Oil Exports
-000 BPD 1,566 1,788 1,919 2,116 1,770
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil
Imports-000 BPD
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil
Imports) US $ Billion
19 30 39 51 60
Exports valued at Venezuela TJL oil price as reported in 2008 OPEC Annual Statistical
Bulletin at www.opec.org
Country Gross Domestic Product US $ Billion
112 146 185 228 314 World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports (Imports) as % of GDP
17.2 20.7 20.9 22.2 19.0 CEE calculation
Government Budget
Surplus/Deficit as % of
Gross Domestic Product
-4.1 -1.3 2.3 http://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=VEB
Stabilization Mechanisms
such as petroleum funds
(yes-1/no-0)
1 1 1 1 1 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues (yes-1/no-0)
1 1 1 1 1 PdVSA annual reports and website information
Institutional structure 50 50 50 50 50
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is
performed by ministry (66); Regulatory function
55
is performed by NOC (33); All three functions
combined in one entity (0).
PdVSA annual reports and website information
Country oil production MM Barrels
1,149 1,195 1,186 1,150 1,150
BP Statistical Review of World Energy June
2009 available at
http://www.bp.com/statisticalreview
Country gas production
BCF 1,000 968 1,112 1,133 1,109
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country MMBOE production
1,321 1,362 1,378 1,345 1,341 CEE calculation
NOC MMBOE Domestic Production
1,147 1,182 1,182 1,127 1,121 PdVSA annual reports and website information
Non-NOC percentage of
oil and gas production (%) 13.2% 13.2% 14.2% 16.2% 16.4% CEE calculation
Country Refinery Capacity - 000 BPD
1,306 1,311 1,311 1,311 1,311
BP Statistical Review of World Energy June
2009 available at
http://www.bp.com/statisticalreview
Net NOC Refinery
Capacity - 000 BPD
(country level)
1,303 1,303 1,303 1,303 1,303 PdVSA annual reports and website information
Non-NOC percentage of refinery capacity (%,
country level)
0.2 0.6 0.6 0.6 0.6 CEE calculation.
Total Revenues (local currency MM)
62,242 82,915 99,252 96,242 126,364 PdVSA annual reports and website information
Royalties and production taxes (local currency MM)
9,247 13,318 18,435 21,981 23,462 PdVSA annual reports and website information
Income taxes (local
currency MM) 6,662 12,702 17,815 14,102 14,733
Based on E&P income taxes paid in Venezuela.
PdVSA annual reports and website information
Dividends paid to
government (local
currency MM)
1,302 1,317 1,716 2,658 2,000 PdVSA annual reports and website information
Royalties, production
taxes, income taxes and
dividends paid to government by NOC as
percentage of total
revenues (%)
27.7 33.0 38.3 40.3 31.8 CEE Calculation
Effect of contract terms on investment decisions
No survey
No survey
No survey
3.45 4.12 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of taxation regime
on decision to invest
No
survey
No
survey
No
survey 3.62 4.01
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of cost of regulatory compliance on decision to
invest
No
survey
No
survey
No
survey 3.30 3.87
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of regulatory
uncertainty on decision to
invest
No survey
No survey
No survey
4.10 4.61 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of environmental
regulations on decision to invest
No
survey
No
survey
No
survey 2.92 2.43
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
NOC objectives 25 25 25 25 25
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and
are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not
ranked and not publicly measured (25); No
public documentation of NOC objectives (0).
PdVSA annual reports and website information
NOC STRATEGY AND BEHAVIOR
Percentage of NOC 1 1 1 1 1 % operated not disclosed in annual reports but
56
domestic upstream
production operated by specific NOC. If no data
yes-1/no-0.
company appears to be a substantial operating
entity
Percentage of NOC
domestic refining production operated by
specific NOC. If no data
yes-1/no-0.
100 100 100 100 100 PdVSA annual reports and website information
NOC upstream capital
expenditures as percentage
of total capital expenditures (%)
60.0 60.0 58.0 62.0 70.0 PdVSA annual reports and website information
NOC refining capital
expenditures as percentage
of total capital expenditures (%)
20.0 20.0 23.4 16.0 9.0 PdVSA annual reports and website information
NOC upstream oil equity
production as percentage
of total NOC refining
throughput (%). If no data,
yes/no.
70.0 70.0 69.0 70.0 70.0 PdVSA annual reports and website information
NOC international revenues as percentage of
total NOC revenues (%). If
no data yes-1/no-0.
10.0 10.0 15.0 11.0 13.0 PdVSA annual reports and website information
Joint ventures between the NOC and third parties
100 100 100 100 100
Scoring: NOC partnerships/JVs exist
domestically and internationally (100); NOC
partnerships exist domestically but not internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC
partnerships, JVs, alliances do not exist (0).
PdVSA annual reports and website information
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of specific NOC (%)
0.0 0.0 0.0 0.0 0.0 PdVSA annual reports and website information
Percentage of independent
BOD members (%) 0.0 0.0 0.0 0.0 20.0 PdVSA annual reports and website information
Appointment authority for
NOC chairman and chief
executive officer
0 0 0 0 0
Scoring: (100)-The government has no participation in deciding who will fill the
positions of Chairman/CEO; (50)-The
government through its control of required voting shares can influence, directly or
indirectly, the appointments of Chairman/CEO
and (0) The Chairman and/or CEO is a direct appointee of the government entity
PdVSA annual reports and website information
Independence of NOC capital and budget
processes
50 50 50 50 50
Scoring: No governmental approval of NOC
budget required (100); No governmental approval of NOC budget required but certain
capital expenditures require state approval
(75);NOC budget is proposed to and approved by one central government entity (50); NOC
budget is proposed to and approved by multiple
central government entities (25); NOC budget is part of the national budget (0).
PdVSA annual reports and website information
NOC net cash flow after taxes and dividends (local
currency MM)
7,490 4,278 2,328 1,151 14,452 PdVSA annual reports and website information
NOC capital expenditures (local currency MM)
5,385 3,939 1,748 11,066 18,413 PdVSA annual reports and website information
NOC financial
sustainability (%) 139.1 108.6 133.2 10.4 78.5
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures %
CEE Calculation
57
NOC financial
transparency 0 0 75 75 75
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25);
No publicly available auditing (0)
PdVSA annual reports and website information
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75); reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and
publicly disclosed (25); No publicly available
reserves auditing (0).
PdVSA annual reports and website information
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
58
10. Petróleos Mexicanos S.A. (Mexico)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 1,231.00 1,305.00 1,487.00 1,744.00 1,643.00
Company oil production MM Bbls 1,374.00 1,354.00 1,332.00 1,268.00 1,135.00
E&P production (BOE) MM BOE 1,598.04 1,591.51 1,602.63 1,585.41 1,434.03
E&P production growth % -1.43 -0.41 0.70 -1.07 -9.55
Total net additions proved oil reserves MM Bbls 136.00 222.00 512.00 605.00 814.00
Total net additions proved gas reserves BCF 1,188.00 1,055.00 785.00 1,050.00 1,184.00
Total net additions proved gas reserves MM BOE 216.22 192.01 142.87 191.10 215.49
Reserve additions (BOE) MM BOE 352.22 414.01 654.87 796.10 1,029.49
Reserves replacement rate % 22.04 26.01 40.86 50.21 71.79
Primary distillation capacity MBPD 1,540.00 1,540.00 1,540.00 1,540.00 1,540.00
Total refining throughput MBPD 1,303.00 1,284.00 1,284.00 1,270.00 1,261.00
Refinery utilization rate % 84.61 83.38 83.38 82.47 81.88
Assets $ MM 86,646.55 99,524.00 110,719.00 122,423.75 89,412.06
Output / total assets BOE/000$ 23.93 20.70 18.71 16.74 21.19
Employees # of people 138,042.00 139,483.00 141,582.00 141,146.00 143,421.00
Output / total employees BOE/000$ 15.02 14.77 14.63 14.52 13.21
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 481.90 510.60 675.56 678,99 767.14
Direct expenditures on social/economic development programs (national currency)
Bn 0.80 1.18 1.81 1.70 2.67
Total revenue (national currency) Bn 810.89 940.48 1,106.10 1,139.26 1,328.95
EBRTN Bn 482.70 511.77 677.37 680.70 769.81
EBRTN / revenues % 59.53 54.42 61.24 59.75 57.93
EBRTN / total assets % 49.30 49.09 56.13 51.17 62.24
Total capital expenditures (national currency) Bn 100.32 104.57 122.68 136.91 159.74
net cash flow after taxes and dividends Bn -0.71 48.32 146.69 216.70 69.12
NCF/CAPEX % -0.70 46.20 119.58 158.28 43.27
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00
NOC employment in native country (# people) # of people 136,661.58 138,088.17 140,166.18 139,734.54 141,986.79
NOC annual employment growth % -1.12 1.04 1.50 -0.31 1.61
Country Labor Force # of people
(000,000) 42,614.10 43,294.33 44,761.01 45,647.42 46,706.07
Country annual employment growth % 3.96 1.60 3.39 1.98 2.32
NOC - Country employment growth % points -5.09 -0.55 -1.88 -2.29 -0.71
NOC employment share of country workforce % 0.32 0.32 0.31 0.31 0.30
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM 391,391.00 487,660.00 565,856.00 622,377.00 847,732.00
Share of local content %
NOC Noncommercial expenditures (local currency) MM 802.00 1,177.00 1,809.00 1,702.00 2,670.00
NOC Noncommercial expenditures $ MM
Noncommercial expenditure/Total expenditure % 0.20 0.24 0.32 0.27 0.31
Net income from non-core commercial business
activities %
Net income from total commercial activities $ MM -2,426.00 -7,282.00 4,159.00 -3,002.00 -1,309.99
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC (local currency) MM 1,595.00 4,743.00 2,325.00 1,242.01 3,877.39
Total NOC Revenues (local currency) Bn 810,89 940.48 1,106.10 1,139.26 1,328.95
Price Subsidies/Revenues % 0.20 0.50 0.21 0.11 0.3
NOC domestic petroleum products production MMBOE 653.55 549.82 549.39 582.39 697.98
Country oil consumption MMBOE 700.23 720.49 719.03 739.72 744.39
Domestic output use % 93.33 76.31 76.41 78.73 93.77
59
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) -1.43 -0.41 0.70 -1.07 -9.55
Reserves replacement rate (BOE, %) 22.04 26.01 40.86 50.21 71.79
Refinery utilization rate (%) 84.61 83.38 83.38 82.47 81.88
Output / total assets (BOE/'000$) 23.93 20.70 18.71 16.74 21.19
Output / total employees ('000 BOE) 15.02 14.77 14.63 14.52 13.21
Financial Performance
EBRTN / revenues (%) 59.53 54.42 61.24 59.75 57.93
EBRTN / total assets (%) 49.30 49.09 56.13 51.17 62.24
NCF / CAPEX (%) -0.70 46.20 119.58 158.28 43.27
National Mission Performance
Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00
NOC – Country employment growth (% points) -5.09 -0.55 -1.88 -2.29 -0.71
NOC employment share of country workforce (%) 0.32 0.32 0.31 0.31 0.30
Share of local content (%)
Noncommercial expenditures/total expenditures (%) 0.20 0.24 0.32 0.27 0.31
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%) 0.20 0.50 0.21 0.11 0.29
Domestic output use (%) 93.33 76.31 76.41 78.73 93.766
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.34 0.28 0.25 0.39 0.30
E&P production growth 0.20 0.04 0.27 0.45 0.04
Reserves replacement rate 0.29 0.25 0.00 0.57 0.44
Refinery utilization rate 0.45 0.36 0.19 0.20 0.21
Output / total assets 0.49 0.51 0.55 0.52 0.63
Output / total employees 0.26 0.25 0.21 0.18 0.17
Financial Performance 0.50 0.38 0.58 0.67 0.54
EBRTN / revenues 0.71 0.58 0.64 0.63 0.62
EBRTN / total assets 0.80 0.56 0.68 0.75 0.95
NCF / CAPEX 0.00 0.00 0.41 0.63 0.06
National Mission Performance 0.33 0.31 0.36 0.30 0.36
Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99
NOC – Country employment growth 0.35 0.33 0.52 0.17 0.19
NOC employment share of country workforce 0.15 0.17 0.22 0.25 0.26
Share of local content
Noncommercial expenditures/total expenditures 0.07 0.02 0.01 0.01 0.02
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues 0.01 0.02 0.01 0.00 0.01
Domestic output use 0.41 0.35 0.39 0.38 0.71
VCI 0.39 0.32 0.39 0.45 0.40
60
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 14,803 13,670 12,850 12,187 11,866
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 419 408 388 512 500
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 17,438 16,236 15,290 15,406 15,058 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability 0.31 0.17 0.09 0.05 0.08
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -0.04 -0.23 -0.48 -0.5 -0.62 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 0.10 -0.01 0.1 0.12 0.18
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality 0.44 0.32 0.38 0.39 0.45 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.37 -0.48 -0.51 -0.56 -0.64 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control -0.33 -0.38 -0.32 -0.34 -0.26 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as % of Total Government
Revenues
32.0 33.0 33.0 34.0 35.0
"Natural Resource Endowments, Governance
and the Domestic Revenue Effort," IMF Working Paper prepared by Fabian Bornhurst,
Sanjeev Gupta and John Thornton, July 2008,
WP/08/170; "Extractive Industries Revenues Distribution at the Sub-National Level,: Matteo
Morgandi, Prepared for Revenue Watch
Institute, New York, June 2008; "Oil and Gas Fiscal System in Mexico," Pedro Luna, Ministry
of Finance, Mexico, World Bank Conference on
Oil and Gas in Federal Systems, March 2010.
Hydrocarbon Revenues as
% of GDP 7.2 7.2 8.3 9.0 10.5 http://devdata.worldbank.org/AAG/mex_aag.pdf
WTO membership (yes-
1/no-0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports
-000 BPD 2,124 2,021 2,048 1,738 1,446
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil
Imports-000 BPD
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil
Imports) US $ Billion
23 30 38 44 45
Exports valued at Mexico Maya oil price as reported in 2008 OPEC Annual Statistical
Bulletin at www.opec.org
Country Gross Domestic Product US $ Billion
759 847 949 1020 1090 World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports
(Imports) as % of GDP
3.1 3.6 4.0 4.3 4.1 CEE calculation
Government Budget
Surplus/Deficit as % of
Gross Domestic Product
2.5 2.5 2.3 2.2 1.8 Pemex Form 20Fs for relevant year
Stabilization Mechanisms
such as petroleum funds
(yes-1/no-0)
1 1 1 1 1 Pemex Form 20Fs for relevant year
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues (yes-1/no-0)
1 1 1 1 1 Pemex Form 20Fs for relevant year
Institutional structure 83 83 83 83 83
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is
performed by ministry (66); Regulatory function is performed by NOC (33); All three functions
combined in one entity (0).
61
Pemex Form 20Fs for relevant year
Country oil production
MM Barrels 1,396 1,372 1,344 1,267 1,152
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country gas production
BCF 1,504 1,590 1,822 1,908 1,934
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country MMBOE production
1,586 1,579 1,588 1,568 1,418
Lesser of BP Statistical Review of World
Energy June 2009 available at http://www.bp.com/statisticalreview or Pemex
Form 20Fs for relevant years. There may be a
small amount of natural gas production operated on behalf of Pemex by third party service
contractors but this data is not available.
NOC MMBOE Domestic Production
1,586 1,579 1,588 1,568 1,418 Pemex Form 20Fs for relevant year
Non-NOC percentage of oil and gas production (%)
0.0 0.0 0.0 0.0 0.0 CEE calculation
Country Refinery Capacity
- 000 BPD 1,540 1,540 1,540 1,540 1,540
Greater of Pemex Form 20Fs or BP Statistical
Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Net NOC Refinery
Capacity - 000 BPD
(country level)
1,540 1,540 1,540 1,540 1,540 Pemex Form 20Fs for relevant year
Non-NOC percentage of
refinery capacity (%,
country level)
0.0 0.0 0.0 0.0 0.0 CEE calculation.
Total Revenues (local
currency MM) 810,894 940,480 1,106,100 1,139,257 1,328,950 Pemex Form 20Fs for relevant year
Royalties and production taxes (local currency MM)
490,142 578,651 595,245 667,999 767,522 Pemex Form 20Fs for relevant year
Income taxes (local currency MM)
0 0 9,520 9,256 4,179 Based on E&P income taxes paid in Mexico. Pemex Form 20Fs for relevant year
Dividends paid to
government (local currency MM)
10,734 10,636 16,393 263 -35,457 Pemex Form 20Fs for relevant year
Royalties, production
taxes, income taxes and dividends paid to
government by NOC as
percentage of total revenues (%)
61.8 62.7 56.2 59.5 55.4 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey
No
survey
No
survey
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime
on decision to invest
No
survey
No
survey
No
survey
No
survey
No
survey
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to
invest
No survey
No survey
No survey
No survey
No survey
Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of regulatory
uncertainty on decision to invest
No
survey
No
survey
No
survey
No
survey
No
survey
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental regulations on decision to
invest
No
survey
No
survey
No
survey
No
survey
No
survey
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
NOC objectives 25 25 25 25 25
Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and
are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not
ranked and not publicly measured (25); No public documentation of NOC objectives (0).
62
Pemex Form 20Fs for relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream
production operated by
specific NOC. If no data yes-1/no-0.
100.0 100.0 100.0 100.0 100.0
Pemex Form 20Fs for relevant year. There may
be a small portion of natural gas production that is operated by third party service contractors on
behalf of Pemex but this data is not available.
Percentage of NOC
domestic refining production operated by
specific NOC. If no data
yes-1/no-0.
100.0 100.0 100.0 100.0 100.0 Pemex Form 20Fs for relevant year
NOC upstream capital expenditures as percentage
of total capital
expenditures (%)
90.5 86.5 83.4 84.4 85.2 Pemex Form 20Fs for relevant year
NOC refining capital
expenditures as percentage
of total capital expenditures (%)
5.1 8.6 12.4 11.7 10.9 Pemex Form 20Fs for relevant year
NOC upstream oil equity
production as percentage
of total NOC refining throughput (%). If no data,
yes/no.
268.9 261.4 262.2 249.9 229.6 Pemex Form 20Fs for relevant year
NOC international revenues as percentage of
total NOC revenues (%). If
no data yes-1/no-0.
0.0 0.0 0.0 0.0 0.0 Pemex Form 20Fs for relevant year
Joint ventures between the NOC and third parties
33 33 33 33 33
Scoring: NOC partnerships/JVs exist
domestically and internationally (100); NOC
partnerships exist domestically but not internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC
partnerships, JVs, alliances do not exist (0).
Pemex Form 20Fs for relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of
specific NOC (%)
0.0 0.0 0.0 0.0 0.0 Pemex Form 20Fs for relevant year
Percentage of independent
BOD members (%) 0.0 0.0 0.0 0.0 0.0 Pemex Form 20Fs for relevant year
Appointment authority for
NOC chairman and chief
executive officer
0 0 0 0 0
Scoring: (100)-The government has no
participation in deciding who will fill the positions of Chairman/CEO; (50)-The
government through its control of required
voting shares can influence, directly or indirectly, the appointments of Chairman/CEO
and (0) The Chairman and/or CEO is a direct
appointee of the government entity
Pemex Form 20Fs for relevant year
Independence of NOC
capital and budget processes
0 0 0 0 0
Scoring: No governmental approval of NOC
budget required (100); No governmental approval of NOC budget required but certain
capital expenditures require state approval
(75);NOC budget is proposed to and approved by one central government entity (50); NOC
budget is proposed to and approved by multiple
central government entities (25); NOC budget is part of the national budget (0).
Pemex Form 20Fs for relevant year
NOC net cash flow after taxes and dividends (local
currency MM)
-705 48,315 146,694 216,703 69,119 Pemex Form 20Fs for relevant year
NOC capital expenditures (local currency MM)
100,324 104,572 122,677 136,913 159,738 Pemex Form 20Fs for relevant year
NOC financial sustainability (%)
-0.7 46.2 119.6 158.3 43.3
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures
%
63
CEE Calculation
NOC financial transparency
100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25);
No publicly available auditing (0)
Pemex Form 20Fs for relevant year
NOC upstream reserves
transparency 100 100 100 100 100
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and
files reports with international exchange (100); reserves auditing performed and publicly
disclosed by independent international firm (75);
reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and
publicly disclosed (25); No publicly available reserves auditing (0).
Pemex Form 20Fs for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
64
11. The Petroleum Oil and Gas Corporation of South Africa
(Pty) Limited (South Africa)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 49.90 70.30 64.20 58.00 53.00
Company oil production MM Bbls 7.1 10.7 8.0 5.4 4.6
E&P production (BOE) MM BOE 16.18 23.49 19.68 15.96 14.25
E&P production growth %
45.19 -16.22 -18.94 -10.72
Total net additions proved oil reserves MM Bbls -11.70 23.80 1.20 -1.80 0.00
Total net additions proved gas reserves BCF 1.60 84.30 83.20 -133.00 20.00
Total net additions proved gas reserves MM BOE 0.29 15.34 15.14 -24.21 3.64
Reserve additions (BOE) MM BOE -11.41 39.14 16.34 -26.01 3.64
Reserves replacement rate % -70.50 166.60 83.02 -162.99 25.55
Primary distillation capacity MBPD
Total refining throughput MBPD
Refinery utilization rate %
Assets $ MM 1,843.19 2,075.00 2,306.07 2,622.53 2,851.31
Output / total assets BOE/000$ 8.78 11.32 8.54 6.08 5.00
Employees # of people 1,263.00 1,587.00 1,399.00
Output / total employees BOE/000$
18.60 12.40 11.41
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) MM 240.00 2,125.00 2,911.00 2,694.00 2,666.00
Direct expenditures on social/economic development programs (national currency)
MM 26.10 19.00 5.00 44.80 85.10
Total revenue (national currency) MM 3,471.00 6,446.00 7,509.00 8,952.00 11,018.77
EBRTN MM 266.10 2,144.00 2,916.00 2,738.80 2,751.10
EBRTN / revenues % 7.67 33.26 38.83 30.59 24.97
EBRTN / total assets % 2.23 16.25 18.71 14.35 11.90
Total capital expenditures (national currency) MM 288.00 288.00 461.00 1,646.00 1,722.00
Net cash flow after taxes and dividends MM 301.80 4,061.00 3,401.00 3,199.00 3,793.00
NCF/CAPEX % 104.79 1,410.07 737.74 194.35 220.27
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 1,237.74 1,539.39 1,343.04
Total number of NOC non-local employees # of people 25.26 47.61 55.96
Share of nationals in NOC workforce % 98.04 97.09 96.00
NOC employment in native country (# people) # of people 1,237.74 1,539.39 1,343.04
NOC annual employment growth % 24.37 -12.76
Country Labor Force # of people
(000,000) 16,793.63 17,141.12 17,503.48 17,884.21 18,641.83
Country annual employment growth % 1.74 2.07 2.11 2.18 4.24
NOC - Country employment growth % points 22.26 -14.93
NOC employment share of country workforce % 0.01 0.01 0.01
NOC local purchases goods and services $ MM 126.42 264.13 441.22 465.72
NOC total purchases goods and services $ MM 471.36 416.19 660.32 1,076.15 667.22
Share of local content %
30.37 40.00 41.00 69.80
NOC noncommercial expenditure (national currency) MM 26.10 19.00 5.00 44.80 85.10
NOC noncommercial expenditure $ MM 4.04 2.99 0.74 6.15 10.49
Noncommercial expenditure/Total expenditure % 0.86 0.72 0.11 0.57 1.57
Net income from non-core commercial business activities $ MM
Net income from total commercial activities $ MM 239.50 1,736.71 2,765.35 2,714.31 1,830.37
Net income noncore commercial activities/Net income %
Price subsidies provided by NOC $ MM
Total NOC Revenues $ MM 537.31 1,013.52 1,110.80 1,229.67 1,358.61
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE 8.80 15.00 11.38 10.17 7.92
Country oil consumption MMBOE 190.90 191.99 196.01 200.39 203.67
Domestic output use % 4.61 7.81 5.81 5.08 3.89
65
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 45.19 -16.22 -18.94 -10.72
Reserves replacement rate (BOE, %) -70.50 166.60 83.02 -162.99 25.55
Refinery utilization rate (%)
Output / total assets (BOE/'000$) 8.78 11.32 8.54 6.08 5.00
Output / total employees ('000 BOE) 18.60 12.40 11.41
Financial Performance
EBRTN / revenues (%) 7.67 33.26 38.83 30.59 24.97
EBRTN / total assets (%) 2.23 16.25 18.71 14.35 11.90
NCF / CAPEX (%) 104.7 1,410.07 737.74 194.35 220.27
National Mission Performance
Share of nationals in NOC workforce (%) 0.00 98.04 97.09 96.00
NOC – Country employment growth (% points) 22.26 -14.93
NOC employment share of country workforce (%) 0.01 0.01 0.01
Share of local content (%) 30.37 40.00 41.00 69.80
Noncommercial expenditures/total expenditures (%) 0.86 0.72 0.11 0.57 1.57
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%)
Domestic output use (%) 4.61 7.81 5.81 5.08 3.89
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.09 0.37 0.13 0.08 0.05
E&P production growth 0.18 0.00 0.01 0.00
Reserves replacement rate 0.01 0.72 0.10 -0.01 0.01
Refinery utilization rate
Output / total assets 0.16 0.27 0.24 0.18 0.14
Output / total employees 0.32 0.18 0.14
Financial Performance 0.18 0.20 0.20 0.37 0.34
EBRTN / revenues 0.00 0.30 0.36 0.26 0.23
EBRTN / total assets 0.00 0.10 0.04 0.07 0.11
NCF / CAPEX 0.53 0.79 0.67
National Mission Performance 0.22 0.33 0.22 0.27
Share of nationals in NOC workforce 0.98 0.96 0.95
NOC – Country employment growth 1.00 0.00
NOC employment share of country workforce 0.00 0.01 0.01
Share of local content 0.00 0.00 0.35 0.72
Noncommercial expenditures/total expenditures 0.30 0.05 0.00 0.02 0.09
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues
Domestic output use 0.00 0.00 0.01 0.00 0.00
VCI 0.09 0.26 0.22 0.23 0.22
66
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 16 16 16 15 15
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 0 0 0 0 0
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 16 16 16 15 15 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability 0.75 0.75 0.83 0.71 0.68
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -0.17 -0.03 0.00 0.04 -0.04 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 0.78 0.83 0.71 0.72 0.75
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality 0.55 0.48 0.55 0.42 0.63 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law 0.15 0.16 0.24 0.13 0.12 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control 0.44 0.55 0.45 0.33 0.30 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as
% of Total Government Revenues
Hydrocarbon Revenues as
% of GDP
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
0 4 5 4 6 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil
Imports-000 BPD 471 538 443 451 470
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil
Imports) US $ Billion
-6 -10 -10 -11 -16 Imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Gross Domestic Product US $ Billion
216 243 258 284 276 World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues (Costs) of Oil Exports
(Imports) as % of GDP
-2.9 -4.1 -3.8 -4.0 -5.8 CEE calculation
Government Budget
Surplus/Deficit as % of Gross Domestic Product
-2.6 -2.1 18.0 http://www.tradingeconomics.com/Economics/G
overnment-Budget.aspx?Symbol=ZAR
Stabilization Mechanisms
such as petroleum funds (yes-1/no-0)
0 0 0 0 0 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1 Mineral and Petroleum Resources Development Act 2002
Institutional structure 50 50 50 50 50
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function
is performed by NOC (33); All three functions
combined in one entity (0).
http://www.cef.org.za/index.php?option=com_c
ontent&view=article&id=1&Itemid=2
67
Country oil production
MM Barrels 85 79 74 72 71
US Energy Information Administration at
http://tonto.eia.doe.gov.
Country gas production
BCF 79 78 102 106 115
US Energy Information Administration at
http://tonto.eia.doe.gov.
Country MMBOE
production 99 92 92 90 91 CEE calculation
NOC MMBOE Domestic Production
16 23 19 15 14 Petro SA annual reports for the relevant year available at www.petrosa.co.za
Non-NOC percentage of oil and gas production (%)
84.0 75.0 79.0 83.0 85.0 CEE calculation
Country Refinery Capacity
- 000 BPD 692 692 692 692 692
US Energy Information Administration at
http://www.eia.doe.gov
Net NOC Refinery
Capacity - 000 BPD (country level)
0 0 0 0 0 Petro SA annual reports for the relevant year
Non-NOC percentage of
refinery capacity (%,
country level)
100.0 100.0 100.0 100.0 100.0 CEE calculation.
Total Revenues (local
currency Bn) 3,473.3 6,446.4 7,508.6 8,951.8 11,018.8 Petro SA annual reports for the relevant year
Royalties and production
taxes (local currency MM) 15,530 14,236 Petro SA annual reports for the relevant year
Income taxes (local currency MM)
436 114,868 88,966 664,310 Petro SA annual reports for the relevant year
Dividends paid to
government (local currency MM)
500,000 Petro SA annual reports for the relevant year
Royalties, production
taxes, income taxes and
dividends paid to
government by NOC as
percentage of total revenues (%)
0.0 2.0 8.0 0.0 6.0 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey
No
survey
No
survey
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime
on decision to invest
No
survey
No
survey
No
survey
No
survey
No
survey
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to
invest
No survey
No survey
No survey
No survey
No survey
Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of regulatory
uncertainty on decision to invest
No
survey
No
survey
No
survey
No
survey
No
survey
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental
regulations on decision to
invest
No
survey
No
survey
No
survey
No
survey
No
survey
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and
are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not
ranked and not publicly measured (25); No public documentation of NOC objectives (0).
Petro SA annual reports for the relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC
domestic upstream production operated by
specific NOC. If no data
1 1 1 1 1 Petro SA annual reports for the relevant year
68
yes-1/no-0.
Percentage of NOC
domestic refining production operated by
specific NOC. If no data
yes-1/no-0.
0.0 0.0 0.0 0.0 0.0 Petro SA annual reports for the relevant year
NOC upstream capital
expenditures as percentage
of total capital expenditures (%)
Not reported
NOC refining capital
expenditures as percentage
of total capital expenditures (%)
0.0 0.0 0.0 0.0 0.0 Not reported
NOC upstream oil equity
production as percentage of total NOC refining
throughput (%). If no data,
yes/no.
Not applicable
NOC international revenues as percentage of
total NOC revenues (%). If
no data yes-1/no-0.
1 1 1 1 1 Petro SA annual reports for the relevant year
Joint ventures between the NOC and third parties
100 100 100 100 100
Scoring: NOC partnerships/JVs exist
domestically and internationally (100); NOC
partnerships exist domestically but not internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC
partnerships, JVs, alliances do not exist (0).
Petro SA annual reports for the relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of specific NOC (%)
0.0 0.0 0.0 0.0 0.0 Petro SA annual reports for the relevant year
Percentage of independent
BOD members (%) 40.0 40.0 40.0 40.0 40.0 Petro SA annual reports for the relevant year
Appointment authority for
NOC chairman and chief
executive officer
50 50 50 50 50
Scoring: (100)-The government has no
participation in deciding who will fill the
positions of Chairman/CEO; (50)-The
government through its control of required voting shares can influence, directly or
indirectly, the appointments of Chairman/CEO
and (0) The Chairman and/or CEO is a direct appointee of the government entity
Petro SA annual reports for the relevant year
Independence of NOC capital and budget
processes
50 50 50 50 50
Scoring: No governmental approval of NOC
budget required (100); No governmental approval of NOC budget required but certain
capital expenditures require state approval
(75);NOC budget is proposed to and approved by one central government entity (50); NOC
budget is proposed to and approved by multiple
central government entities (25); NOC budget is part of the national budget (0).
Petro SA annual reports for the relevant year
NOC net cash flow after taxes and dividends (local
currency Bn)
301.8 4,061.0 2,889.2 4,242.4 3,793.0 Petro SA annual reports for the relevant year
NOC capital expenditures (local currency MM)
287.5 287.5 466.6 2,325.8 1,722.1 Petro SA annual reports for the relevant year
NOC financial
sustainability (%) 105.0 1412.3 619.2 182.4 220.3
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures
%
CEE Calculation
NOC financial transparency
50 50 50 50 50
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
69
government auditor (50) ; FS auditing performed
internally by N OC and publicly disclosed (25); No publicly available auditing (0)
Petro SA annual reports for the relevant year
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75); reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and publicly disclosed (25); No publicly available
reserves auditing (0).
Petro SA annual reports for the relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
70
12. Petróleos Brasileiro S.A. (Brazil)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF
Company oil production MM Bbls
E&P production (BOE) MM BOE 687.00 741.00 782.00 783.00 822.00
E&P production growth % 16.24 7.86 5.53 0.13 4.98
Total net additions proved oil reserves MM Bbls
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE
Reserve additions (BOE) MM BOE 713.00 1,846.00 371.00 1,036.00 296.0
Reserves replacement rate % 103.78 249.12 47.44 132.31 36.01
Primary distillation capacity MBPD 1,985.00 2,027.00 1,986.00 2,167.00 19.00
Total refining throughput MBPD 1,704.00 1,726.00 1,746.00 1,950.30 17.27
Refinery utilization rate % 85.84 85.15 87.92 90.00 90.90
Assets $ MM 63,082.00 78,638.00 98,680.00 129,715.00 125,695.00
Output / total assets BOE/000$ 20.75 17.43 14.38 11.52 6.59
Employees # of people 52,037.00 53,904.00 62,266.00 68,931.00 74,240.00
Output / total employees BOE/000$ 25.15 25.43 22.79 21.69 11.16
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes $ MM 27,117.00 37,053.00 47,385.00 44,738.00 66,178.00
Direct expenditures on social/economic development programs
$ MM 212.00 113.00 119.00 123.54 312.83
Total revenue $ MM 51,954.00 74,065.00 93,893.00 112,425.00 146,529.00
EBRTN $ MM 27,329.00 37,166.00 47,504.00 44,861.54 66,490.83
EBRTN / revenues % 52.60 50.18 50.59 39.90 45.38
EBRTN / total assets % 43.32 47.26 48.14 34.58 52.90
Total capital expenditures $ MM 8,371.00 10,436.00 15,246.00 22,529.00 29,874.00
net cash flow after taxes and dividends $ MM 6,370.00 13,051.00 17,933.00 18,631.00 23,453.00
NCF/CAPEX % 76.10 125.06 117.62 82.70 78.51
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 46,098.00 47,709.00 55,409.00 62,148.00 67,465.00
Total number of NOC non-local employees # of people 5,935.00 6,195.00 6,857.00 6,783.00 6,775.00
Share of nationals in NOC workforce % 88.59 88.51 88.99 90.16 90.87
NOC employment in native country (# people) # of people 46,098.00 47,738.00 55,409.00 62,148.00 67,465.00
NOC annual employment growth % 3.56 16.07 12.16 8.56
Country Labor Force # of people
(000,000) 91,961.40 94,507.38 97,036.61 97,879.08 99,945.05
Country annual employment growth % 2.86 2.77 2.68 0.87 2.11
NOC - Country employment growth % points 0.79 13.39 11.29 6.44
NOC employment share of country workforce % 0.05 0.05 0.06 0.06 0.07
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM 30,835.00 43,125.00 58,214.00 76,758.00 108,120.00
Share of local content %
80.00 70.00
NOC noncommercial expenditure (national currency) MM
NOC noncommercial expenditure $ MM 212.00 113.00 119.00 123.54 312.83
Noncommercial expenditure/Total expenditure % 0.69 0.26 0.20 0.16 0.29
Net income from non-core commercial business
activities $ MM
Net income from total commercial activities $ MM 6,190.00 23.73 25.92 21.51 32.99
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ MM 1,440.00 1,440.00 1,440.00 1,440.00
Total NOC Revenues $ MM 51,954.00 74,065.00 93,893.00 112,425.00 146,529.00
Price Subsidies/Revenues % 1.94 1.53 1.28 0.98
NOC domestic petroleum products production MMBOE 623.00 633.00 619.41 655.18 652.26
Country oil consumption MMBOE 729.49 747.35 767.09 829.95 874.83
Domestic output use % 85.40 84.70 80.75 78.94 74.56
71
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 16.24 7.86 5.53 0.13 4.98
Reserves replacement rate (BOE, %) 103.78 249.12 47.44 132.31 36.01
Refinery utilization rate (%) 85.84 85.15 87.92 90.00 90.90
Output / total assets (BOE/'000$) 20.75 17.43 14.38 11.52 6.59
Output / total employees ('000 BOE) 25.15 25.43 22.79 21.69 11.16
Financial Performance
EBRTN / revenues (%) 52.60 50.18 50.59 39.90 45.38
EBRTN / total assets (%) 43.32 47.26 48.14 34.58 52.90
NCF / CAPEX (%) 76.10 125.06 117.62 82.70 78.51
National Mission Performance
Share of nationals in NOC workforce (%) 88.59 88.51 88.99 90.16 90.87
NOC – Country employment growth (% points) 0.79 13.39 11.29 6.44
NOC employment share of country workforce (%) 0.06 0.06 0.07
Share of local content (%) 80.00 70.00
Noncommercial expenditures/total expenditures (%) 0.69 0.26 0.20 0.16 0.29
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%) 1.94 1.53 1.28 0.98
Domestic output use (%) 85.40 84.70 80.75 78.94 74.56
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.51 0.46 0.28 0.45 0.26
E&P production growth 0.71 0.06 0.35 0.48 0.48
Reserves replacement rate 0.53 1.00 0.02 0.80 0.11
Refinery utilization rate 0.47 0.39 0.27 0.33 0.36
Output / total assets 0.42 0.43 0.42 0.35 0.19
Output / total employees 0.44 0.44 0.34 0.28 0.14
Financial Performance 0.57 0.49 0.48 0.38 0.48
EBRTN / revenues 0.62 0.52 0.50 0.37 0.47
EBRTN / total assets 0.70 0.53 0.55 0.44 0.79
NCF / CAPEX 0.39 0.41 0.40 0.31 0.19
National Mission Performance 0.37 0.28 0.43 0.35 0.31
Share of nationals in NOC workforce 0.86 0.86 0.86 0.88 0.89
NOC – Country employment growth 0.35 0.83 0.36 0.30
NOC employment share of country workforce 0.00 0.00 0.04 0.05 0.06
Share of local content 0.78 0.75
Noncommercial expenditures/total expenditures 0.24 0.02 0.01 0.01 0.01
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues 0.06 0.08 0.03 0.04
Domestic output use 0.37 0.39 0.41 0.38 0.56
VCI 0.49 0.41 0.40 0.39 0.35
72
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 11,243 11,772 12,182 12,624 12,801
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 321 302 343 360 359
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 13,263 13,671 14,337 14,890 15,058 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability 0.35 0.43 0.51 0.48 0.51
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -0.08 -0.08 -0.13 -0.17 -0.12 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 0.01 -0.09 -0.14 -0.13 -0.01
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality 0.07 0.05 -0.04 -0.04 0.19 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.32 -0.44 -0.43 -0.43 -0.3 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control 0.06 -0.19 -0.17 -0.21 -0.03 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as
% of Total Government
Revenues
6.0 6.0 6.0 6.0 6.0
CEE calculation based on following relationships: Oil revenues averaging 1.4% of
GDP and government revenues averaging 23%
of GDP. Sources:"Raising and Sharing Revenue" by Sergio Wulff Gobetti, Conference
on Oil and Gas in Federal Systems, World Bank,
March 2010; World Bank Development Indicators: http://data.worldbank.org/indicator
Hydrocarbon Revenues as
% of GDP 1.4 1.4 1.4 1.4 1.4
"Raising and Sharing Revenue" by Sergio Wulff
Gobetti, Conference on Oil and Gas in Federal Systems, World Bank, March 2010.
WTO membership (yes-
1/no-0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-1/no-0) over five years
0 0 0 0 0 www.opec.org
Country Crude Oil Exports
-000 BPD
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil Imports-000 BPD
413 420 427 392 372 2009 OPEC Annual Statistical Bulletin at www.opec.org
(Country Revenues Oil
Exports)-(Costs Oil Imports) US $ Billion
5
8
10
10
13
Imports valued at nominal world oil price as
reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Gross Domestic
Product US $ Billion 664 882 1,090 1,330 1,610
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports
(Imports) as % of GDP
0.8 0.9 0.9 0.7 0.8 CEE calculation
Government Budget
Surplus/Deficit as % of
Gross Domestic Product
5.7 2.3 3.1 2.3 1.7 http://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=BRL
Stabilization Mechanisms such as petroleum funds
(yes-1/no-0)
0 0 0 0 0 http://www.anp.gov.br/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national policy addressing
hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1 Petrobras Form 20Fs for relevant year
73
Institutional structure 83 83 83 83 83
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function
is performed by NOC (33); All three functions
combined in one entity (0).
Petrobras Form 20Fs for relevant year
Country oil production MM Barrels
562 626 660 668 693
BP Statistical Review of World Energy June
2009 available at
http://www.bp.com/statisticalreview
Country gas production
BCF 478 530 533 510 605
Petrobras Form 20Fs for relevant years. Both BP and OPEC appear to report marketed gas
production which is significantly lower than
Petrobras gas production.
Country MMBOE
production 644 717 752 756 797 CEE calculation
NOC MMBOE Domestic
Production 602 673 708 708 750 Petrobras Form 20Fs for relevant year
Non-NOC percentage of oil and gas production (%)
6.6 6.2 5.8 6.3 5.9 CEE calculation
Country Refinery Capacity - 000 BPD
1,915 1,928 1,929 1,935 1942
Greater of Petrobras Form 20Fs for relevant
years or BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Net NOC Refinery Capacity - 000 BPD
(country level)
1,915 1,928 1,929 1,935 1942 Petrobras Form 20Fs for relevant year
Non-NOC percentage of
refinery capacity (%, country level)
0.0 0.0 0.0 0.0 0.0 CEE calculation.
Total Revenues (local
currency MM) 51,954 74,065 93,893 112,425 146,529 Petrobras Form 20Fs for relevant year
Royalties and production
taxes (local currency MM) 4,052 5,831 7,477 8,381 9,255 Petrobras Form 20Fs for relevant year
Income taxes (local
currency MM) 2,231 4,441 5,691 5,888 9,259
Based on E&P income taxes paid in Brazil.
Petrobras Form 20Fs for relevant year
Dividends paid to government (local
currency MM)
1,000 1,178 1,761 2,242 2,658 ONGC annual reports for relevant year
Royalties, production taxes, income taxes and
dividends paid to
government by NOC as percentage of total
revenues (%)
14.0 15.5 15.9 14.7 14.4 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 2.00 2.29
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.87 2.67 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.57 2.72
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 2.54 2.29
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.50 2.38 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 25 25 25 25 25
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not
74
ranked and not publicly measured (25); No
public documentation of NOC objectives (0).
Petrobras Form 20Fs for relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream
production operated by
specific NOC. If no data yes-1/no-0.
95.0 95.0 95.0 95.0 95.0 CEE estimate based on Petrobras Form 20Fs for relevant year
Percentage of NOC
domestic refining production operated by
specific NOC. If no data
yes-1/no-0.
100. 100.0 100.0 100.0 100.0 CEE estimate based on Petrobras Form 20Fs for
relevant year
NOC upstream capital expenditures as percentage
of total capital
expenditures (%)
57.0 64.0 51.0 53.0 57.0 CEE estimate based on Petrobras Form 20Fs for
relevant year
NOC refining capital
expenditures as percentage of total capital
expenditures (%)
16.0 17.0 13.0 21.0 25.0
CEE estimate based on Petrobras Form 20Fs for
relevant year. Note: Refining capital
expenditures are not separated but included in the Supply Segment which also includes oil
logistics, petrochemicals, fertilizers, ethanol
distribution.
NOC upstream oil equity production as percentage
of total NOC refining
throughput (%). If no data, yes/no.
94.0 102.0 103.0 90.0 94.0 CEE estimate based on Petrobras Form 20Fs for relevant year
NOC international
revenues as percentage of total NOC revenues (%). If
no data yes-1/no-0.
8.0 6.0 7.0 9.0 8.0 CEE estimate based on Petrobras Form 20Fs for relevant year
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC
partnerships exist domestically but not
internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC
partnerships, JVs, alliances do not exist (0).
Petrobras Form 20Fs for relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
44.3 44.3 44.3 44.3 44.3 Petrobras Form 20Fs for relevant year
Percentage of independent BOD members (%)
22.2 22.2 22.2 22.2 22.2 Petrobras Form 20Fs for relevant year
Appointment authority for NOC chairman and chief
executive officer
50 50 50 50 50
Scoring: (100)-The government has no
participation in deciding who will fill the
positions of Chairman/CEO; (50)-The government through its control of required
voting shares can influence, directly or
indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct
appointee of the government entity
Petrobras Form 20Fs for relevant year
Independence of NOC
capital and budget processes
50 50 50 50 50
Scoring: No governmental approval of NOC
budget required (100); No governmental
approval of NOC budget required but certain capital expenditures require state approval
(75);NOC budget is proposed to and approved
by one central government entity (50); NOC budget is proposed to and approved by multiple
central government entities (25); NOC budget is
part of the national budget (0).
Petrobras Form 20Fs for relevant year
NOC net cash flow after
taxes and dividends (local currency MM)
6,370 13,051 17,933 18,631 23,453 Petrobras Form 20Fs for relevant year
NOC capital expenditures
(local currency MM) 8,371 10,436 15,246 22,529 29,874 Petrobras Form 20Fs for relevant year
75
NOC financial
sustainability (%) 76.1 125.1 117.6 82.7 78.5
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures %
CEE Calculation
NOC financial
transparency 100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25);
No publicly available auditing (0)
Petrobras Form 20Fs for relevant year
NOC upstream reserves
transparency 100 100 100 100 100
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75); reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and publicly disclosed (25); No publicly available
reserves auditing (0).
Petrobras Form 20Fs for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
76
13. Petro China Company Limited (China)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 1,068.24 1,339.55 1,588.00 1,627.00 1,864.00
Company oil production MM Bbls 819.98 825.41 831.14 839.00 871.00
E&P production (BOE) MM BOE 1,014.40 1,069.20 1,120.16 1,135.11 1,210.25
E&P production growth % 10.38 5.40 4.77 1.34 6.62
Total net additions proved oil reserves MM Bbls 823.00 864.00 913.00 927.00 386.00
Total net additions proved gas reserves BCF 4,531.00 4,218.00 6,934.00 5,269.00 5,942.00
Total net additions proved gas reserves MM BOE 824.64 767.68 1,261.99 958.96 1,081.44
Reserve additions (BOE) MM BOE 1,647.64 1,631.68 2,174.99 1,885.96 1,467.44
Reserves replacement rate % 162.43 152.61 194.17 166.15 121.25
Primary distillation capacity MBPD 2,183.00 2,337.00 2,564.00 2,580.10 2,580.10
Total refining throughput MBPD 1,939.00 2,061.00 2,151.00 2,256.50 2,300.00
Refinery utilization rate % 88.82 88.19 83.89 87.46 89.14
Assets $ MM 77,110.75 95,118.22 109,597.13 141,035.67 172,691.02
Output / total assets BOE/000$ 22.33 19.15 17.38 13.89 11.87
Employees # of people 424,175.00 439,290.00 446,290.00 466,502.00 477,780.00
Output / total employees BOE/000$ 4.06 4.15 4.27 4.20 4.29
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) MM 172,321.00 217,762.00 257,105.00 274,563.00 283,415.00
Direct expenditures on social/economic development programs (national currency)
MM
96.56 219.89 351.25
Total revenue (national currency) Bn 397.35 553.35 690.51 836.35 1,071.10
EBRTN MM 172,321.00 217,762.00 257,201.56 274,782.89 283,766.25
EBRTN / revenues % 43.37 39.35 37.25 32.85 26.49
EBRTN / total assets % 26.99 27.99 29.49 25.70 23.75
Total capital expenditures (national currency) MM 95,045.00 121,561.00 158,578.00 194,182.00 243,752.00
net cash flow after taxes and dividends MM 88,024.0 169,557.0 196,765.7 205,586.0 179,526.2
NCF/CAPEX % 92.61 139.48 124.08 105.87 73.65
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00
NOC employment in native country (# people) # of people 419,933.25 434,897.10 441,827.10 461,836.98 473,002.20
NOC annual employment growth % 3.76 3.56 1.59 4.53 2.42
Country Labor Force # of people
(000,000) 754,509.41 760,627.03 766,465.19 771,078.94 776,880.99
Country annual employment growth % 1.03 0.81 0.77 0.60 0.75
NOC - Country employment growth % points 2.73 2.75 0.83 3.93 1.67
NOC employment share of country workforce % 0.06 0.06 0.06 0.06 0.06
NOC local purchases goods and services $ MM 111,948.00 164,489.00 188,352.00 231,820.00 265,377.00
NOC total purchases goods and services $ MM 114,249.00 200,321.00 269,301.00 369,219.00 562,122.00
Share of local content % 97.99 82.11 69.94 62.79 47.21
NOC noncommercial expenditure (national currency) MM 96.56 219.89 351.25
NOC noncommercial expenditure $ MM 12.13 29.01 50.76
Noncommercial expenditure/Total expenditure % 0.04 0.06 0.06
Net income from non-core commercial business
activities $ MM
Net income from total commercial activities $ MM 108,108.00 140,105.00 150,148.00 155,176.00 126,651.00
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ MM 2,392.51 2,421.76 3,659.22 2,728.02 11,991.10
Total NOC Revenues $ MM 47,989.61 67,646.70 86,770.63 110,328.07 154,798.90
Price Subsidies/Revenues % 4.99 3.58 4.22 2.47 7.75
NOC domestic petroleum products production MMBOE 551.93 580.73 617.04 655.22 675.60
Country oil consumption MMBOE 2,471.87 2,549.20 2,694.35 2,825.90 2,919.58
Domestic output use % 22.33 22.78 22.90 23.19 23.14
77
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 10.38 5.40 4.77 1.34 6.62
Reserves replacement rate (BOE, %) 162.43 152.61 194.17 166.15 121.25
Refinery utilization rate (%) 88.82 88.19 83.89 87.46 89.14
Output / total assets (BOE/'000$) 22.33 19.15 17.38 13.89 11.87
Output / total employees ('000 BOE) 4.06 4.15 4.27 4.20 4.29
Financial Performance
EBRTN / revenues (%) 43.37 39.35 37.25 32.85 26.49
EBRTN / total assets (%) 26.99 27.99 29.49 25.70 23.75
NCF / CAPEX (%) 92.61 139.48 124.08 105.87 73.65
National Mission Performance
Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00
NOC – Country employment growth (% points) 2.73 2.75 0.83 3.93 1.67
NOC employment share of country workforce (%) 0.06 0.06 0.06 0.06 0.06
Share of local content (%) 97.99 82.11 69.94 62.79 47.21
Noncommercial expenditures/total expenditures (%) 0.04 0.06 0.06
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%) 4.99 3.58 4.22 2.47 7.75
Domestic output use (%) 22.33 22.78 22.90 23.19 23.14
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.45 0.34 0.29 0.43 0.43
E&P production growth 0.54 0.06 0.34 0.51 0.53
Reserves replacement rate 0.71 0.68 0.35 0.89 0.91
Refinery utilization rate 0.51 0.43 0.20 0.28 0.33
Output / total assets 0.46 0.47 0.51 0.43 0.35
Output / total employees 0.05 0.06 0.05 0.04 0.05
Financial Performance 0.46 0.37 0.33 0.33 0.24
EBRTN / revenues 0.49 0.38 0.34 0.29 0.24
EBRTN / total assets 0.42 0.26 0.22 0.28 0.31
NCF / CAPEX 0.47 0.48 0.43 0.41 0.17
National Mission Performance 0.48 0.43 0.36 0.30 0.31
Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99
NOC – Country employment growth 0.61 0.39 0.58 0.26 0.23
NOC employment share of country workforce 0.03 0.03 0.04 0.05 0.05
Share of local content 1.00 1.00 0.59 0.65 0.44
Noncommercial expenditures/total expenditures 0.00 0.00 0.00
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues 0.17 0.11 0.21 0.07 0.28
Domestic output use 0.08 0.08 0.11 0.09 0.15
VCI 0.46 0.38 0.33 0.35 0.33
78
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 15,531 15,587 15,615 15,493 14,817
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 1,448 1,535 1,684 2,255 2,455
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 24,640 25,240 26,204 29,678 30,261 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -1.45 -1.52 -1.68 -1.72 -1.72
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -0.14 -0.25 -0.31 -0.28 -0.32 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.05 -0.12 0.06 0.19 0.24
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality -0.29 -0.25 -0.33 -0.24 -0.22 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.36 -0.41 -0.48 -0.45 -0.33 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control -0.58 -0.67 -0.53 -0.61 -0.44 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as
% of Total Government Revenues
Hydrocarbon Revenues as
% of GDP
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
109 161 126 76 77 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil
Imports-000 BPD 2,780 2,904 3,379 3,670 3,857
US Energy Information Administration t
http://www.eia.gov/countries/?fips=CH
(Country Revenues Oil
Exports)-(Costs Oil Imports) US $ Billion
-35 -51 -72 -91 -130
Exports valued at China Daiqing oil price and imports valued at nominal oil price as reported
in 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Gross Domestic
Product US $ Billion 1,930 2,240 2,660 3,380 4,333
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports
(Imports) as % of GDP
-1.8 -2.3 -2.7 -2.7 -3.0 CEE calculation
Government Budget Surplus/Deficit as % of
Gross Domestic Product
-2.4 -2.1 -1.6 -1.4 http://www.tradingeconomics.com/Economics/G
overnment-Budget.aspx?Symbol=CNY
Stabilization Mechanisms such as petroleum funds
(yes-1/no-0)
0 0 0 0 0 CEE assessment
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues (yes-1/no-0)
0 0 0 0 0
China has been drafting an Energy Law since 2006. In Feb. 2010 it was submitted to the
Legislative Affairs Office of the State Council
and is expected to take effect in 2011. http://www.bjreview.com.cn/Energy/txt/2010-
02/25/content_248380.htm
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function
is performed by NOC (33); All three functions
79
combined in one entity (0).
"China's Energy Market," by Nicholas V. Chen,
Pamir Law Group, 9/19/08, [email protected]; "Energy on the Agenda,"
Country oil production
MM Barrels
1,271
1,324
1,345
1,366
1,385
BP Statistical Review of World Energy June
2009 available at http://www.bp.com/statisticalreview
Country gas production BCF
1,460
1,742
2,068
2,445
2,679
BP Statistical Review of World Energy June
2009 available at
http://www.bp.com/statisticalreview
Country MMBOE
production
1,523
1,624
1,702
1,788
1,847 CEE calculation
NOC MMBOE Domestic
Production
1,374
1,465
1,525
1,550
1,621
Petrochina, CNOOC and Sinopec Form 20Fs for
relevant year
Non-NOC percentage of oil and gas production (%)
9.8 9.8 10.4 13.3 12.2 CEE calculation
Country Refinery Capacity
- 000 BPD
6,289
6,587
7,029
7,511
7,732
BP Statistical Review of World Energy June
2009 available at http://www.bp.com/statisticalreview
Net NOC Refinery
Capacity - 000 BPD (country level)
5,300
5,552
5,847
6,042
6,193
Petrochina and Sinopec Form 20Fs for relevant
year
Non-NOC percentage of
refinery capacity (%,
country level)
15.7 15.7 16.8 19.6 19.9 CEE calculation.
Total Revenues (local
currency BM) 397.4 552.2 690.5 836.4 1,071.1 Petrochina Form 20Fs for relevant year
Royalties and production
taxes (local currency MM) 7,712 10,239 41,896 56,554 105,813 Petrochina Form 20Fs for relevant year
Income taxes (local currency MM)
43,598 54,180 50,602 49,781 35,178 Petrochina Form 20Fs for relevant year
Dividends paid to
government (local currency MM)
53,667 34,328 60,358 56,775 46,495 Petrochina Form 20Fs for relevant year
Royalties, production
taxes, income taxes and dividends paid to
government by NOC as
percentage of total revenues (%)
26.4 17.9 22.1 19.5 17.5 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 2.42 2.16
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime
on decision to invest
No
survey
No
survey
No
survey 2.97 2.64
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to
invest
No survey
No survey
No survey
2.84 2.11 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of regulatory
uncertainty on decision to invest
No
survey
No
survey
No
survey 3.03 2.6
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental regulations on decision to
invest
No
survey
No
survey
No
survey 2.16 1.78
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
NOC objectives 25 25 25 25 25
Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and
are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not
ranked and not publicly measured (25); No public documentation of NOC objectives (0).
Petrochina Form 20Fs for relevant year
NOC STRATEGY AND BEHAVIOR
80
Percentage of NOC
domestic upstream production operated by
specific NOC. If no data
yes-1/no-0.
1 1 1 1 1 % operated not disclosed in Form 20Fs but company appears to be a substantial operating
entity
Percentage of NOC domestic refining
production operated by
specific NOC. If no data yes-1/no-0.
100.0 100.0 100.0 100.0 100.0 Petrochina Form 20Fs for relevant year
NOC upstream capital
expenditures as percentage of total capital
expenditures (%)
74.0 76.0 73.0 76.0 69.0 Petrochina Form 20Fs for relevant year
NOC refining capital
expenditures as percentage of total capital
expenditures (%)
19.0 14.0 12.0 14.0 8.0 Petrochina Form 20Fs for relevant year
NOC upstream oil equity
production as percentage
of total NOC refining
throughput (%). If no data, yes/no.
115.8 109.7 105.9 102.0 102.7 Petrochina Form 20Fs for relevant year
NOC international
revenues as percentage of
total NOC revenues (%). If no data yes-1/no-0.
4.0 3.0 4.0 3.0 5.0 Petrochina Form 20Fs for relevant year
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist
domestically and internationally (100); NOC partnerships exist domestically but not
internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0).
Petrochina Form 20Fs for relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
10.00 11.79 11.79 13.71 13.29 Petrochina Form 20Fs for relevant year
Percentage of independent
BOD members (%) 23.08 23.08 25.00 27.27 35.71 Petrochina Form 20Fs for relevant year
Appointment authority for
NOC chairman and chief executive officer
50 50 50 50 50
Scoring: (100)-The government has no
participation in deciding who will fill the
positions of Chairman/CEO; (50)-The government through its control of required
voting shares can influence, directly or
indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct
appointee of the government entity
Petrochina Form 20Fs for relevant year
Independence of NOC
capital and budget
processes
75 75 75 75 75
Scoring: No governmental approval of NOC budget required (100); No governmental
approval of NOC budget required but certain
capital expenditures require state approval (75);NOC budget is proposed to and approved
by one central government entity (50); NOC
budget is proposed to and approved by multiple central government entities (25); NOC budget is
part of the national budget (0).
Petrochina Form 20Fs for relevant year
NOC net cash flow after
taxes and dividends (local
currency MM)
88,024 169,557 196,766 205,586 179,526 Petrochina Form 20Fs for relevant year
NOC capital expenditures
(local currency MM) 95,045 121,561 158,578 194,182 243,752 Petrochina Form 20Fs for relevant year
NOC financial
sustainability (%)
Measured by net cash flow after taxes and dividends as percentage of capital expenditures
%
CEE Calculation
81
NOC financial
transparency 100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25);
No publicly available auditing (0)
Petrochina Form 20Fs for relevant year
NOC upstream reserves transparency
100 100 100 100 100
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75); reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and
publicly disclosed (25); No publicly available
reserves auditing (0).
Petrochina Form 20Fs for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
82
14. Petroliam Nasional Berhad (Malaysia)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF
Company oil production MM Bbls
E&P production (BOE) MM BOE 551.37 583.27 582.72 624.11 647.04
E&P production growth % -0.20 5.79 -0.09 7.10 3.67
Total net additions proved oil reserves MM Bbls
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE
Reserve additions (BOE) MM BOE
Reserves replacement rate % 260.00 70.00 170.00 180.00 90.00
Primary distillation capacity MBPD 356.50 356.50 367.30 367.30 376.30
Total refining throughput MBPD 320.85 310.16 334.24 337.92 323.62
Refinery utilization rate % 90.00 87.00 91.00 92.00 86.00
Assets $ MM 53,421.05 62,894.74 73,783.78 89,204.72 97,976.88
Output / total assets BOE/000$ 12.51 11.07 9.55 8.38 7.81
Employees # of people 30,634.00 33,944.00 34,985.00 36,027.00 39,236.00
Output / total employees BOE/000$ 21.82 20.52 20.14 20.75 19.50
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes $ MM 68.20 82.20 89.60 106.00 101.00
Direct expenditures on social/economic development programs
$ MM
Total revenue $ MM 137.00 167.00 184.00 223.00 264.00
EBRTN $ MM 68.20 82.20 89.60 106.00 101.00
EBRTN / revenues % 49.78 49.22 48.70 47.53 38.26
EBRTN / total assets % 33.60 34.39 32.82 35.93 29.79
Total capital expenditures (national currency) MM 17,400.00 18,700.00 21,600.00 37,600.00 44,000.00
Net cash flow after taxes and dividends MM 34,200.00 38,500.00 40,000.00 48,100.00 35,400.00
NCF/CAPEX % 196.55 205.88 185.19 127.93 80.45
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 82.00 80.00
NOC employment in native country (# people) # of people 29,542.14 31,388.80
NOC annual employment growth % 6.25
Country Labor Force # of people
(000,000) 10,735.29 10,982.45 11,217.77 11,474.57 11,732.50
Country annual employment growth % 2.31 2.30 2.14 2.29 2.25
NOC - Country employment growth % points
4.00
NOC employment share of country workforce % 0.26 0.27
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM 46,200.00 60,830.00 74,690.00 83,006.00 97,790.00
Share of local content %
NOC noncommercial expenditure (national currency) MM
NOC noncommercial expenditure $ MM
Noncommercial expenditure/Total expenditure %
Net income from non-core commercial business
activities $ MM
Net income from total commercial activities $ MM 6,923.00 10,672.00 12,719.00 137.41 188.49
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ MM 7.40 14.00 15.60 19.70 19.50
Total NOC Revenues $ MM 137.00 167.00 184.00 223.00 264.00
Price Subsidies/Revenues % 5.40 8.38 8.48 8.83 7.39
NOC domestic petroleum products production MMBOE 207.00 204.00 193.00 185.00 182.00
Country oil consumption MMBOE 185.00 191.00 195.00 197.00 196.00
Domestic output use % 111.89 106.81 98.97 93.91 92.86
83
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) -0.20 5.79 -0.09 7.10 3.67
Reserves replacement rate (BOE, %) 260.00 70.00 170.00 180.00 90.00
Refinery utilization rate (%) 90.00 87.00 91.00 92.00 86.00
Output / total assets (BOE/'000$) 12.51 11.07 9.55 8.38 7.81
Output / total employees ('000 BOE) 21.82 20.52 20.14 20.75 19.50
Financial Performance
EBRTN / revenues (%) 49.78 49.22 48.70 47.53 38.26
EBRTN / total assets (%) 33.60 34.39 32.82 35.93 29.79
NCF / CAPEX (%) 196.55 205.88 185.19 127.93 80.45
National Mission Performance
Share of nationals in NOC workforce (%) 82.00 80.00
NOC – Country employment growth (% points) 4.00
NOC employment share of country workforce (%) 0.26 0.27
Share of local content (%)
Noncommercial expenditures/total expenditures (%)
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%) 5.40 8.38 8.48 8.83 7.39
Domestic output use (%) 111.89 106.81 98.97 93.91 92.86
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.48 0.30 0.29 0.49 0.36
E&P production growth 0.24 0.06 0.26 0.66 0.44
Reserves replacement rate 1.00 0.40 0.30 0.93 0.62
Refinery utilization rate 0.52 0.41 0.32 0.36 0.28
Output / total assets 0.24 0.26 0.27 0.25 0.23
Output / total employees 0.38 0.35 0.30 0.27 0.25
Financial Performance 0.70 0.56 0.50 0.48 0.33
EBRTN / revenues 0.58 0.51 0.48 0.47 0.38
EBRTN / total assets 0.53 0.35 0.28 0.47 0.41
NCF / CAPEX 1.00 0.82 0.75 0.50 0.19
National Mission Performance 0.34 0.38 0.47 0.42 0.44
Share of nationals in NOC workforce 0.78 0.75
NOC employment growth 0.26
NOC employment share of country workforce 0.21 0.23
Share of local content
Noncommercial expenditures/total expenditures
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues 0.18 0.27 0.42 0.24 0.26
Domestic output use 0.49 0.50 0.51 0.46 0.70
VCI 0.51 0.41 0.42 0.46 0.38
84
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 5,160 5,252 5,357 5,460 5,520
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 2,464 2,480 2,480 2,382 2,381
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 20,659 20,851 20,956 20,445 20,495 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -0.25 -0.17 -0.55 -0.57 -0.58
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability 0.29 0.47 0.34 0.23 0.13 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 0.99 0.99 1.06 1.11 1.13
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality 0.48 0.52 0.51 0.53 0.27 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law 0.55 0.58 0.56 0.52 0.49 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control 0.42 0.32 0.36 0.23 0.14 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as
% of Total Government
Revenues
20 29 34 35 44
Petronas website
http://www.petronas.com.my/downloads/financialOperationalReview/financialOperationalRevie
w2007-08.pdf
Hydrocarbon Revenues as
% of GDP 4.0 5.5 7.6 7.4 10.1
World Bank Development Indicators:
http://data.worldbank.org/indicator
WTO membership (yes-
1/no-0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-1/no-0) over five years
0 0 0 0 0 www.opec.org
Country Crude Oil Exports
-000 BPD 376 383 391 401 402
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil Imports-000 BPD
(Country Revenues Oil
Exports)-(Costs Oil Imports) US $ Billion
6 8 10 11 15
Exports valued at Malaysia Miri oil price as
reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Gross Domestic
Product US $ Billion 125 138 156 187 195
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports
(Imports) as % of GDP
4.5 5.9 6.4 6.1 7.9 CEE calculation
Government Budget Surplus/Deficit as % of
Gross Domestic Product
-4.1 http://www.tradingeconomics.com/Economics/G
overnment-Budget.aspx?Symbol=MYR
Stabilization Mechanisms such as petroleum funds
(yes-1/no-0)
0 0 0 0 0 "Is Petronas on the right track?," by Datuk Seri
Dr. Fong Chan Onn, the star online, 3/21/10.
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national policy addressing
hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1
US Energy Information Administration at
http://www.kettha.gov.my/template01.asp?contentid=155
Institutional structure 45 45 45 45 45
Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is
performed by ministry (66); Regulatory function
is performed by NOC (33); All three functions combined in one entity (0).
CEE assessment
85
Country oil production
MM Barrels 289 271 262 271 275
BP Statistical Review of World Energy June
2009 available at http://www.bp.com/statisticalreview
Country gas production BCF
1,897 2,117 2,108 2,147 2,202
BP Statistical Review of World Energy June
2009 available at
http://www.bp.com/statisticalreview
Country MMBOE
production 616 636 625 641 655 CEE calculation
NOC MMBOE Domestic
Production 426 443 425 412 423
Includes Petronas entitlement volumes from PSCs as well as Petronas' own production. See
relevant year financial and operational reviews
at www.petronas.com.my/investor_relations
Non-NOC percentage of
oil and gas production (%) 30.9 30.3 32.0 35.7 35.4 CEE calculation
Country Refinery Capacity
- 000 BPD 545 545 555 556 565
http://www.pump-zone.com/global-news/pakistan-revives-250000-barrel-per-day-
khalifa-refinery.html
Net NOC Refinery Capacity - 000 BPD
(country level)
357 357 367 367 367 Petronas annual reports for relevant year
Non-NOC percentage of
refinery capacity (%, country level)
34.6 34.6 33.8 33.9 35.0 CEE calculation.
Total Revenues (local
currency MM) 97,512 137,000 166,900 184,100 223,100 Petronas annual reports for relevant year
Royalties and production
taxes (local currency MM) 7,800 9,700 6,300 6,800 Petronas annual reports for relevant year
Income taxes (local
currency MM) 14,300 19,000 26,000 30,800 Petronas annual reports for relevant year
Dividends paid to government (local
currency MM)
9,100 13,000 20,000 30,000 Petronas annual reports for relevant year
Royalties, production taxes, income taxes and
dividends paid to
government by NOC as percentage of total
revenues (%)
21.8 22.8 25.0 28.4 30.3 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 2.0 2.5
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.0 2.6 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.7 2.8
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 3.0 2.3
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.4 2.0 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No
public documentation of NOC objectives (0).
Petronas annual reports for relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream
production operated by
36.0 36.0 36.0 36.0 36.0 CEE estimate based on disclosure in 2008/2007 operational and financial review available at
www.petronas.com.my/investor_relations
86
specific NOC. If no data
yes-1/no-0.
Percentage of NOC domestic refining
production operated by
specific NOC. If no data yes-1/no-0.
100.0 100.0 100.0 100.0 100.0 Petronas annual reports for relevant year
NOC upstream capital
expenditures as percentage of total capital
expenditures (%)
56.6 60.8 54.5 67.7 55.1 Petronas annual reports for relevant year
NOC refining capital
expenditures as percentage of total capital
expenditures (%)
6.0 6.0 7.1 10.6 20.5 Petronas annual reports for relevant year
NOC upstream oil equity production as percentage
of total NOC refining
throughput (%). If no data,
yes/no.
201.5 189.0 194.8 184.6 190.1 Petronas annual reports for relevant year
NOC international
revenues as percentage of
total NOC revenues (%). If no data yes-1/no-0.
35.0 35.0 34.0 37.0 40.0 Petronas annual reports for relevant year
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist
domestically and internationally (100); NOC partnerships exist domestically but not
internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0).
Petronas annual reports for relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
0.0 0.0 0.0 0.0 0.0 Petronas annual reports for relevant year
Percentage of independent
BOD members (%) 0.0 0.0 0.0 0.0 11.11
"Petronas: A National Oil Company with an
International Vision," by Dr. Fred R. von der
Mehden with Al Troner, Presented at James A.
Baker III Institute for Public Policy, Rice
University, March 2007.
Appointment authority for
NOC chairman and chief
executive officer
0 0 0 0 0
Scoring: (100)-The government has no
participation in deciding who will fill the
positions of Chairman/CEO; (50)-The government through its control of required
voting shares can influence, directly or
indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct
appointee of the government entity
"Petronas: A National Oil Company with an
International Vision," by Dr. Fred R. von der Mehden with Al Troner, Presented at James A.
Baker III Institute for Public Policy, Rice University, March 2007.
Independence of NOC
capital and budget processes
50 50 50 50 50
Scoring: No governmental approval of NOC
budget required (100); No governmental
approval of NOC budget required but certain capital expenditures require state approval
(75);NOC budget is proposed to and approved
by one central government entity (50); NOC budget is proposed to and approved by multiple
central government entities (25); NOC budget is
part of the national budget (0).
Petronas annual reports for relevant year
NOC net cash flow after taxes and dividends (local
currency MM)
NOC capital expenditures
(local currency MM) 24,200 17,600 21,100 28,200 37,600 Petronas annual reports for relevant year
NOC financial sustainability (%)
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures
%
87
NOC financial
transparency 0 0 0 0 0
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25);
No publicly available auditing (0)
Petronas annual reports for relevant year
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75); reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and
publicly disclosed (25); No publicly available
reserves auditing (0).
Petronas annual reports for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
88
15. PTT Public Company Limited (Thailand)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF
Company oil production MM Bbls
E&P production (BOE) MM BOE 49.17 56.04 61.81 65.63 80.04
E&P production growth % 25.54 13.98 10.30 6.17 21.97
Total net additions proved oil reserves MM Bbls
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE
Reserve additions (BOE) MM BOE
Reserves replacement rate %
98.00
Primary distillation capacity MBPD 382.00 383.00 393.00 400.00 427.00
Total refining throughput MBPD
Refinery utilization rate % 91.00 90.20 91.00 92.00 86.00
Assets $ MM 12,492.46 16,191.52 19,882.58 26,534.24 25,291.57
Output / total assets BOE/000$ 3.94 3.46 3.11 2.47 3.16
Employees # of people 4,807.00 4,779.00 5,019.00 7,942.00 7,989.00
Output / total employees BOE/000$ 10.23 11.73 12.32 8.26 10.02
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 101.42 132.06 173.65 178.77 137.74
Direct expenditures on social/economic development programs (national currency)
Bn
Total revenue (national currency) Bn 644.67 926.27 1,226.83 1,508.13 2,000.82
EBRTN Bn 101.42 132.06 173.65 178.77 137.74
EBRTN / revenues % 15.73 14.26 14.15 11.85 6.88
EBRTN / total assets % 20.82 20.28 23.06 20.05 15.56
Total capital expenditures (national currency) Bn 55.78 100.89 94.02 99.09 109.61
net cash flow after taxes and dividends Bn 25.25 80.04 83.73 105.91 107.73
NCF/CAPEX % 45.27 79.33 89.05 106.88 98.29
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 4,703.00 4,611.00 4,796.00
Total number of NOC non-local employees # of people 104.00 168.00 223.00
Share of nationals in NOC workforce % 97.84 96.48 95.56
NOC employment in native country (# people) # of people
4,703.00
4,611.00
4,796.00
NOC annual employment growth % 16.61 -1.96 4.01
Country Labor Force # of people
(000,000) 36,734.08 37,300.55 37,483.94 38,118.05 38,494.89
Country annual employment growth % 1.88 1.54 0.49 1.69 0.99
NOC - Country employment growth % points 14.73 -3.50 3.52
NOC employment share of country workforce % 0.01 0.01 0.01
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM
Share of local content %
NOC Noncommercial expenditures (national
currency) MM
NOC Noncommercial expenditures $ MM
Noncommercial expenditure/Total expenditure %
Net income from noncore commercial business activities (national currency)
MM 10,385.00 11,549.00 25,360.00 24,669.00 30,268.00
Net income from total commercial activities
(national currency) Bn 644.67 926.27 1,226.83 1,508.13 2,000.82
Net income noncore commercial activities/Net
income % 1.61 1.25 2.07 1.64 1.51
Price subsidies provided by NOC $ MM 0.24 0.09
Total NOC Revenues $ MM 16,529.40 23,030.06 32,385.67 44,886.13 57,166.17
Price Subsidies/Revenues % 0.00 0.00
NOC domestic petroleum products production MMBOE 104.53 111.02 257.62 267.91 255.28
Country oil consumption MMBOE 300.69 311.16 304.43 300.29 291.09
Domestic output use % 34.76 35.68 84.62 89.22 87.70
89
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 25.54 13.98 10.30 6.17 21.97
Reserves replacement rate (BOE, %) 98.00
Refinery utilization rate (%) 91.00 90.20 91.00 92.00 86.00
Output / total assets (BOE/'000$) 3.94 3.46 3.11 2.47 3.16
Output / total employees ('000 BOE) 10.23 11.73 12.32 8.26 10.02
Financial Performance
EBRTN / revenues (%) 15.73 14.26 14.15 11.85 6.88
EBRTN / total assets (%) 20.82 20.28 23.06 20.05 15.56
NCF / CAPEX (%) 45.27 79.33 89.05 106.88 98.29
National Mission Performance
Share of nationals in NOC workforce (%) 97.84 96.48 95.56
NOC – Country employment growth (% points) 14.73 -3.50 3.52
NOC employment share of country workforce (%) 0.01 0.01 0.01
Share of local content (%)
Noncommercial expenditures/total expenditures (%)
Noncore commercial activities net income/Total net income (%) 1.61 1.25 2.07 1.64 1.51
Price Subsidies/Revenues (%) 0.00 0.00
Domestic output use (%) 34.76 35.68 84.62 89.22 87.70
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.43 0.20 0.25 0.29 0.44
E&P production growth 0.98 0.08 0.43 0.63 1.00
Reserves replacement rate 0.69
Refinery utilization rate 0.54 0.46 0.32 0.36 0.28
Output / total assets 0.06 0.07 0.07 0.07 0.09
Output / total employees 0.17 0.19 0.18 0.10 0.13
Financial Performance 0.22 0.12 0.14 0.20 0.14
EBRTN / revenues 0.11 0.05 0.04 0.02 0.01
EBRTN / total assets 0.32 0.15 0.11 0.18 0.17
NCF / CAPEX 0.23 0.17 0.25 0.41 0.25
National Mission Performance 0.50 0.41 0.50 0.38 0.65
Share of nationals in NOC workforce 0.97 0.96 0.94
NOC – Country employment growth 1.00 0.27 0.63
NOC employment share of country workforce 0.01 0.01 0.01
Share of local content
Noncommercial expenditures/total expenditures
Noncore commercial activities net income/Total net income 0.37 0.66 1.00 0.69 0.64
Price Subsidies/Revenues 0.00 0.00
Domestic output use 0.14 0.14 0.43 0.43 0.66
VCI 0.38 0.24 0.30 0.29 0.41
90
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 527 453 461 461 454
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 354 304 331 317 340
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 2,754 2,365 2,543 2,455 2,593 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability 0.12 0.03 -0.55 -0.61 -0.56
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -0.40 -0.6 -0.89 -1.01 -1.19 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 0.22 0.36 0.25 0.17 0.11
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality 0.24 0.41 0.23 0.11 0.26 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law 0.05 0.11 0 -0.07 -0.03 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control -0.21 -0.13 -0.24 -0.41 -0.38 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as
% of Total Government Revenues
Hydrocarbon Revenues as
% of GDP
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil
Imports-000 BPD 861 827 828 801 811
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil
Imports) US $ Billion
-11 -15 -18 -20 -28
Thailand's oil imports valued at nominal annual oil price as reported in the 2008 OPEC Annual
Statistical Bulletin at www.opec.org
Country Gross Domestic
Product US $ Billion 161 176 207 247 272
World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues (Costs) of Oil Exports
(Imports) as % of GDP
-7.0 -8.7 -8.9 -8.2 -10.3 CEE calculation
Government Budget
Surplus/Deficit as % of Gross Domestic Product
1.5 1.1 2.6 2.0 14.0 http://www.tradingeconomics.com/Economics/G
overnment-Budget.aspx?Symbol=THB
Stabilization Mechanisms
such as petroleum funds (yes-1/no-0)
0 0 0 0 0 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1 CEE assessment
Institutional structure 100 100 100 100 100
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function
is performed by NOC (33); All three functions
combined in one entity (0).
PTT annual reports and presentations for
relevant years at http://www.pttplc.com/en/
Country oil production
MM Barrels 82 97 104 113 119
BP Statistical Review of World Energy June
2009 available at http://www.bp.com/statisticalreview
91
Country gas production
BCF 788 834 859 915 1016
BP Statistical Review of World Energy June
2009 available at http://www.bp.com/statisticalreview
Country MMBOE
production 218 241 252 271 294 CEE calculation
NOC MMBOE Domestic
Production 49 56 62 66 80
PTT annual reports and presentations for the
relevant year
Non-NOC percentage of
oil and gas production (%) 77.5 76.7 75.4 75.6 72.8 CEE calculation
Country Refinery Capacity
- 000 BPD 1,062 1,065 1,092 1,112 1,187
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Net NOC Refinery
Capacity - 000 BPD (country level)
382 383 393 400 427 PTT annual reports and presentations for the
relevant year
Non-NOC percentage of
refinery capacity (%, country level)
64.0 64.0 64.0 64.0 64.0 CEE calculation.
Total Revenues (local
currency Bn) 644.7 926.3 1,226.8 1,508.1 2,000.8
PTT annual reports and presentations for the
relevant year
Royalties and production
taxes (local currency MM) 5,668 8,982 12,849 12,529 17,328
PTT annual reports and presentations for the
relevant year
Income taxes (local
currency MM) 18,677 23,628 33,227 42,224 43,347
PTT annual reports and presentations for the
relevant year
Dividends paid to government (local
currency MM)
32,586 9,818 20,746 15,337 18,330 PTT annual reports and presentations for the
relevant year
Royalties, production
taxes, income taxes and dividends paid to
government by NOC as
percentage of total revenues (%)
8.8 4.6 5.4 4.6 3.9 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 1.71 2.00
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.57 2.25 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.60 1.75
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 2.75 2.6
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.80 2.25 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No
public documentation of NOC objectives (0).
PTT annual reports and presentations for the
relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC
domestic upstream
production operated by specific NOC. If no data
yes-1/no-0.
1 1 1 1 1
% operated not disclosed in annual reports but
company appears to be a substantial operating entity.
92
Percentage of NOC
domestic refining production operated by
specific NOC. If no data
yes-1/no-0.
1 1 1 1 1 PTT annual reports and presentations for the
relevant year
NOC upstream capital
expenditures as percentage
of total capital expenditures (%)
59.0 55.0 42.0 42.0 59.0 PTT annual reports and presentations for the
relevant year
NOC refining capital
expenditures as percentage
of total capital expenditures (%)
1.0 0.0 0.0 0.0 0.0 PTT annual reports and presentations for the
relevant year
NOC upstream oil equity
production as percentage of total NOC refining
throughput (%). If no data,
yes/no.
1 1 1 1 1 PTT annual reports and presentations for the
relevant year
NOC international
revenues as percentage of
total NOC revenues (%). If
no data yes-1/no-0.
30.0 36.0 76.0 75.0 69.0 PTT annual reports and presentations for the
relevant year
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist
domestically and internationally (100); NOC
partnerships exist domestically but not internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC
partnerships, JVs, alliances do not exist (0).
PTT annual reports and presentations for the
relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
31.94 31.94 32.13 32.13 32.87 PTT annual reports and presentations for the
relevant year
Percentage of independent
BOD members (%) 13.33 7.14 6.67 6.67 6.67
PTT annual reports and presentations for the
relevant year
Appointment authority for
NOC chairman and chief
executive officer
50 50 50 50 50
Scoring: (100)-The government has no
participation in deciding who will fill the
positions of Chairman/CEO; (50)-The government through its control of required
voting shares can influence, directly or
indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct
appointee of the government entity
PTT annual reports and presentations for the
relevant year
Independence of NOC
capital and budget
processes
50 50 50 50 50
Scoring: No governmental approval of NOC
budget required (100); No governmental
approval of NOC budget required but certain capital expenditures require state approval
(75);NOC budget is proposed to and approved
by one central government entity (50); NOC budget is proposed to and approved by multiple
central government entities (25); NOC budget is
part of the national budget (0).
PTT annual reports and presentations for the
relevant year
NOC net cash flow after taxes and dividends (local
currency MM)
25,249 80,036 83,725 105,911 107,730 PTT annual reports and presentations for the
relevant year
NOC capital expenditures (local currency MM)
55,780 100,885 94,023 99,095 109,605 PTT annual reports and presentations for the relevant year
NOC financial
sustainability (%) 45.3 79.3 89.0 106.9 98.3
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures %
CEE Calculation
93
NOC financial transparency
50 50 50 50 50
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25);
No publicly available auditing (0)
PTT annual reports and presentations for the
relevant year
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing performed by independent international firm and
files reports with international exchange (100);
reserves auditing performed and publicly disclosed by independent international firm (75);
reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and
publicly disclosed (25); No publicly available
reserves auditing (0).
PTT annual reports and presentations for the
relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
94
16. Qatar Petroleum (Qatar)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 1,382.31 1,616.28 1,789.20 2,230.33 2,716.66
Company oil production MM Bbls 275.68 279.55 293.06 308.53 307.62
E&P production (BOE) MM BOE 522.1 567.6 612.0 706.1 791.8
E&P production growth % 19.12 8.73 7.81 15.38 12.15
Total net additions proved oil reserves MM Bbls
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE
Reserve additions (BOE) MM BOE
Reserves replacement rate %
Primary distillation capacity MBPD 150.00 150.00 150.00 150.00 150.00
Total refining throughput MBPD 136.50 136.50 136.50 137.00 137.00
Refinery utilization rate % 91.00 91.00 91.00 91.33 91.33
Assets $ MM
20,637.09
28,995.88
37,869.78
51,740.66
67,591.76
Output / total assets BOE/000$ 27.71 21.29 17.48 14.61 12.45
Employees # of people 11,516.03 11,466.67 9,942.11 9,947.37 10,708.33
Output / total employees BOE/000$ 49.66 53.85 66.56 76.01 78.62
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) MM 43,061.00 65,526.00 90,446.00 104,962.91 151,643.00
Direct expenditures on social/economic development
programs (national currency) MM
Total revenue (national currency) MM 53,506.00 75,826.00 100,684.00 117,430.00 168,488.00
EBRTN MM 43,061.00 65,526.00 90,446.00 104,962.91 151,643.00
EBRTN / revenues % 80.48 86.42 89.83 89.38 90.00
EBRTN / total assets % 57.32 62.08 65.61 55.73 61.63
Total capital expenditures (national currency) MM 13,714.00 20,008.00 32,990.00 47,037.00 36,791.00
net cash flow after taxes and dividends MM 12,520.00 18,515.00 13,610.00 41,063.00 36,863.00
NCF/CAPEX % 91.29 92.54 41.25 87.30 100.20
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 1,975.00 1,892.00 1,889.00 1,890.00 1,972.00
Total number of NOC non-local employees # of people 9,541.03 9,574.67 8,053.11 8,057.37 8,736.33
Share of nationals in NOC workforce % 17.2 16.5 21.0 19.0 19.0
NOC employment in native country (# people) # of people 11,400.87 11,352.00 9,842.68 9,847.89 10,601.25
NOC annual employment growth % 4.12 -0.43 -13.30 0.05 7.65
Country Labor Force # of people
(000) 521,151.68 597,420.54 687,986.97 792,937.57 899,391.21
Country annual employment growth % 12.74 14.6 15.2 15.3 13.4
NOC - Country employment growth % points -8.63 -15.06 -28.46 -15.20 -5.78
NOC employment share of country workforce % 2.19 1.90 1.43 1.24 1.18
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM
Share of local content %
NOC noncommercial expenditure (national currency) MM
NOC noncommercial expenditure $ MM
Noncommercial expenditure/Total expenditure %
Net income from non-core commercial business
activities $ MM 135.77 74.42 102.69 165.00 196.15
Net income from total commercial activities $ MM 4,281.32 6,005.49 8,581.04 9,628.85 15,329.67
Net income noncore commercial activities/Net
income % 3.17 1.24 1.20 1.71 1.28
Price subsidies provided by NOC $ MM
Total NOC Revenues $ MM 14,699.45 20,831.32 27,660.44 32,260.99 46,287.91
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE 43.29 43.47 48.11 48.11 46.06
Country oil consumption MMBOE 19.41 22.71 27.35 32.77 37.97
Domestic output use % 223.00 191.38 175.92 146.79 121.31
95
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 19.12 8.73 7.81 15.38 12.15
Reserves replacement rate (BOE, %)
Refinery utilization rate (%) 91.00 91.00 91.00 91.33 91.33
Output / total assets (BOE/'000$) 27.71 21.29 17.48 14.61 12.45
Output / total employees ('000 BOE) 49.66 53.85 66.56 76.01 78.62
Financial Performance
EBRTN / revenues (%) 80.48 86.42 89.83 89.38 90.00
EBRTN / total assets (%) 57.32 62.08 65.61 55.73 61.63
NCF / CAPEX (%) 91.29 92.54 41.25 87.30 100.20
National Mission Performance
Share of nationals in NOC workforce (%) 17.15 16.50 21.00 19.00 19.00
NOC – Country employment growth (% points) -8.63 -15.06 -28.46 -15.20 -5.78
NOC employment share of country workforce (%) 2.19 1.90 1.43 1.24 1.18
Share of local content (%)
Noncommercial expenditures/total expenditures (%)
Noncore commercial activities net income/Total net income (%) 3.17 1.24 1.20 1.71 1.28
Price Subsidies/Revenues (%)
Domestic output use (%) 223.00 191.38 175.92 146.79 121.31
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.70 0.50 0.56 0.67 0.61
E&P production growth 0.79 0.07 0.39 0.86 0.70
Reserves replacement rate
Refinery utilization rate 0.54 0.48 0.32 0.35 0.36
Output / total assets 0.57 0.53 0.52 0.45 0.37
Output / total employees 0.90 0.94 1.01 1.02 1.02
Financial Performance 0.80 0.66 0.62 0.72 0.73
EBRTN / revenues 1.00 1.00 1.00 1.00 1.00
EBRTN / total assets 0.94 0.74 0.85 0.83 0.94
NCF / CAPEX 0.47 0.24 0.00 0.33 0.26
National Mission Performance 0.59 0.53 0.50 0.49 0.52
Share of nationals in NOC workforce 0.00 0.00 0.00 0.00 0.00
NOC – Country employment growth 0.24 0.05 0.00 0.00 0.12
NOC employment share of country workforce 1.00 1.00 1.00 1.00 1.00
Share of local content
Noncommercial expenditures/total expenditures
Noncore commercial activities net income/Total net income 0.73 0.66 0.58 0.73 0.54
Price Subsidies/Revenues
Domestic output use 1.00 0.93 0.92 0.73 0.92
VCI 0.70 0.56 0.56 0.63 0.62
96
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 26,865 27,910 27,436 27,323 28,833
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 25,361 25,636 25,543 25,465 25,365
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 186,386 189,161 188,100 187,497 186,379 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -0.47 -0.4 -0.59 -0.73 -0.77
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability 0.94 0.78 0.87 0.8 1.01 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 0.50 0.36 0.38 0.05 0.68
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality 0.31 0.33 0.38 0.55 0.66 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law 0.66 0.81 0.85 0.86 0.86 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control 0.82 0.93 0.94 1.07 1.24 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as % of Total Government
Revenues
66.0 66.0 66.0 66.0 66.0
"Natural Resource Endowments, Governance
and the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working
Paper, WP/08/170, July 2008;
http://www.edc.ca/english/docs/gqatar_e.pdf
Hydrocarbon Revenues as
% of GDP 26.0 26.0 30.0 33.0 40.0
"Natural Resource Endowments, Governance
and the Domestic Revenue Effort," by F.
Bornhorst, S. Gupta, J. Thornton, IMF Working Paper, WP/08/170, July 2008;
http://www.edc.ca/english/docs/gqatar_e.pdf
WTO membership (yes-
1/no-0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 1 1 1 1 1 www.opec.org
Country Crude Oil Exports
-000 BPD 543 677 620 615 703
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil
Imports-000 BPD
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil
Imports) US $ Billion
18 25 34 42 56 Qatar's values of exports as reported in the 2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Gross Domestic Product US $ Billion
32 43 57 71 92 World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports (Imports) as % of GDP
56.3 58.1 59.6 59.2 60.9 CEE calculation
Government Budget
Surplus/Deficit as % of
Gross Domestic Product
9.8 9.8 9.8 9.8 10.0 http://www.edc.ca/english/docs/gqatar_e.pdf
Stabilization Mechanisms
such as petroleum funds
(yes-1/no-0)
0 1 1 1 1 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues (yes-1/no-0)
1 1 1 1 1 The Industrial Strategy as articulated by the Ministry of Energy and Industry and related
laws available at www.mei.gov.qa
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is
performed by ministry (66); Regulatory function is performed by NOC (33); All three functions
combined in one entity (0).
Ministry of Energy and Industry,
97
www.mei.gov.qa
Country oil production
MM Barrels 362 375 405 437 503
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country gas production
BCF
1,380
1,617
1,791
2,232
2,698
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country MMBOE production
600 654 714 822 968 CEE calculation
NOC MMBOE Domestic
Production 348 383 419 488 577
US Energy Information Administration at
www.eia.doe.gov/emeu/cabs/Qatar/pdf.pdf
Non-NOC percentage of
oil and gas production (%) 42.1 41.5 41.3 40.6 40.4 CEE calculation
Country Refinery Capacity
- 000 BPD 200 200 200 200 200
US Energy Information Administration at
www.eia.doe.gov/emeu/cabs/Qatar/pdf.pdf
Net NOC Refinery Capacity - 000 BPD
(country level)
150 150 150 150 150 Qatar Petroleum annual reports for relevant
years available at www.qp.com.qa
Non-NOC percentage of refinery capacity (%,
country level)
25.0 25.0 25.0 25.0 25.0 CEE calculation.
Total Revenues (local currency MM)
53,506 75,826 100,684 117,430 168,488 Qatar Petroleum annual reports for relevant years
Royalties and production
taxes (local currency MM) 7,538 11,924 16,691 20,589 28,801
Qatar Petroleum annual reports for relevant
years
Income taxes (local
currency MM) 19,168 30,773 41,434 47,077 63,571
Based on E&P income taxes paid in India.
ONGC annual reports for relevant year
Dividends paid to
government (local currency MM)
7,272 9,781 19,806 5,265 21,697
Qatar Petroleum annual reports for relevant
years available at www.qp.com.qa. Instead of
dividends the company reports "Net change in account with Ministry of Finance" in cash flows
from financing activities.
Royalties, production
taxes, income taxes and dividends paid to
government by NOC as
percentage of total revenues (%)
63.5 69.2 77.4 62.1 67.7 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 1.8 1.77
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.00 1.75 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 1.90 1.85
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 2.11 1.65
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.00 1.86 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No
public documentation of NOC objectives (0).
Qatar Petroleum annual reports for relevant
years
98
NOC STRATEGY AND BEHAVIOR
Percentage of NOC
domestic upstream production operated by
specific NOC. If no data
yes-1/no-0.
1 1 1 1 1 % operated not disclosed in annual reports but company appears to be a substantial operating
entity
Percentage of NOC
domestic refining
production operated by specific NOC. If no data
yes-1/no-0.
100.0 100.0 100.0 100.0 100.0 Qatar Petroleum annual reports for relevant
years
NOC upstream capital
expenditures as percentage of total capital
expenditures (%)
Not reported
NOC refining capital expenditures as percentage
of total capital
expenditures (%)
Not reported
NOC upstream oil equity production as percentage
of total NOC refining
throughput (%). If no data, yes/no.
280.0 284.0 356.0 413.0 503.0 Qatar Petroleum annual reports for relevant years
NOC international
revenues as percentage of total NOC revenues (%). If
no data yes-1/no-0.
1 1 1 1 1 Qatar Petroleum annual reports for relevant years
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC
partnerships exist domestically but not
internationally (66); NOC partnerships exist internationally but not domestically (33); NOC
partnerships, JVs, alliances do not exist (0).
Qatar Petroleum annual reports for relevant
years
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of
specific NOC (%)
0.0 0.0 0.0 0.0 0.0 Qatar Petroleum annual reports for relevant years
Percentage of independent
BOD members (%) 0.0 0.0 0.0 0.0 0.0
Qatar Petroleum annual reports for relevant
years
Appointment authority for NOC chairman and chief
executive officer
0 0 0 0 0
Scoring: (100)-The government has no
participation in deciding who will fill the positions of Chairman/CEO; (50)-The
government through its control of required
voting shares can influence, directly or indirectly, the appointments of Chairman/CEO
and (0) The Chairman and/or CEO is a direct
appointee of the government entity
Qatar Petroleum annual reports for relevant
years
Independence of NOC capital and budget
processes
50 50 50 50 50
Scoring: No governmental approval of NOC budget required (100); No governmental
approval of NOC budget required but certain
capital expenditures require state approval (75);NOC budget is proposed to and approved
by one central government entity (50); NOC
budget is proposed to and approved by multiple central government entities (25); NOC budget is
part of the national budget (0).
Qatar Petroleum annual reports for relevant years
NOC net cash flow after
taxes and dividends (local currency MM)
12,520 18,515 13,610 41,063 36,863 Qatar Petroleum annual reports for relevant
years
NOC capital expenditures
(local currency MM) 13,714 20,008 32,990 47,037 36,791
Qatar Petroleum annual reports for relevant
years
NOC financial sustainability (%)
91.3 92.5 41.3 87.3 100.2
Measured by net cash flow after taxes and dividends as percentage of capital expenditures
%
99
CEE Calculation
NOC financial
transparency 75 75 75 75 75
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25);
No publicly available auditing (0)
Qatar Petroleum annual reports for relevant years
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75);
reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and publicly disclosed (25); No publicly available
reserves auditing (0).
Qatar Petroleum annual reports for relevant
years
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
100
17. Oil Company Rosneft (Russia)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF
Company oil production MM Bbls
E&P production MM BOE 148.00 621.00 655.00 792.00 771.00
E&P production growth % 11.28 319.59 5.48 20.92 -2.65
Total net additions proved oil reserves MM Bbls
Total net additions proved gas reserves BCF
Total net additions proved gas reserves MM BOE
Reserve additions MM BOE 330.00 -310.00 1,439.00 620.00 593.00
Reserves replacement rate % 222.97 -49.92 219.69 78.28 76.91
Primary distillation capacity MBPD 256.85 493.15 493.15 1,136.99 1,107.53
Total refining throughput MBPD 135.82 454.32 481.10 805.75 987.67
Refinery utilization rate % 52.88 92.13 97.56 70.87 89.18
Assets $ MM 26,012.00 30,016.00 46,790.00 74,805.00 77,513.00
Output / total assets BOE/000$ 7.60 26.21 17.75 14.52 14.60
Employees # of people 76,380.00 63,550.00 74,200.00 105,903.00 161,912.00
Output / total employees BOE/000$ 2.59 12.38 11.19 10.26 6.99
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes $ MM 2,923.00 17,068.00 23,734.00 34,643.00 49,821.00
Direct expenditures on social/economic development programs
$ MM 125.00 91.00 279.00 557.00 689.00
Total revenue $ MM 5,262.00 23,863.00 33,099.00 49,216.00 68,991.00
EBRTN $ MM 3,048.00 17,159.00 24,013.00 35,200.00 50,510.00
EBRTN / revenues % 57.92 71.91 72.55 71.52 73.21
EBRTN / total assets % 11.72 57.17 51.32 47.06 65.16
Total capital expenditures $ MM 4,378.00 2,090.00 4,378.00 6,870.00 8,779.00
net cash flow after taxes and dividends $ MM 655.12 2,887.32 2,217.00 16,736.00 13,905.00
NCF/CAPEX % 14.96 138.15 50.64 243.61 158.39
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00
NOC employment in native country (# people) # of people
75,616.20
62,914.50
73,458.00
104,843.97
160,292.88
NOC annual employment growth % 8.21 -16.80 16.76 42.73 52.89
Country Labor Force # of people
(000,000) 73,887.91 74,389.25 75,135.02 76,116.87 76,025.81
Country annual employment growth % 0.16 0.68 1.00 1.31 -0.12
NOC - Country employment growth % points 8.05 -17.48 15.76 41.42 53.01
NOC employment share of country workforce % 0.10 0.08 0.10 0.14 0.21
NOC local purchases goods and services $ MM
5,661.60
NOC total purchases goods and services $ MM 5,571.00 6,938.00 8,088.00 12,512.00 16,541.00
Share of local content % 70.00
NOC noncommercial expenditure (national currency) MM
NOC noncommercial expenditure $ MM 125.00 91.00 279.00 557.00 689.00
Noncommercial expenditure/Total expenditure % 2.24 1.31 3.45 4.45 4.17
Net income from non-core commercial business
activities $ MM 228.11 334.00 197.00 440.00 1,568.00
Net income $ MM 5,262.00 23,863.00 33,099.00 49,216.00 68,991.00
Net income noncore commercial activities/Net
income % 4.34 1.40 0.60 0.89 2.27
Price subsidies provided by NOC $ MM
Total NOC Revenues $ MM 189.62 829.15 1,257.08 2,004.73 2,348.23
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE 49.58 162.75 169.80 287.10 348.30
Country oil consumption MMBOE 955.78 949.52 988.79 987.67 1,020.77
Domestic output use % 5.19 17.14 17.17 29.07 34.12
101
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 11.28 319.59 5.48 20.92 -2.65
Reserves replacement rate (BOE, %) 222.97 -49.92 219.69 78.28 76.91
Refinery utilization rate (%) 52.88 92.13 97.56 70.87 89.18
Output / total assets (BOE/'000$) 7.60 26.21 17.75 14.52 14.60
Output / total employees ('000 BOE) 2.59 12.38 11.19 10.26 6.99
Financial Performance
EBRTN / revenues (%) 57.92 71.91 72.55 71.52 73.21
EBRTN / total assets (%) 11.72 57.17 51.32 47.06 65.16
NCF / CAPEX (%) 14.96 138.15 50.64 243.61 158.39
National Mission Performance
Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00
NOC- Country employment growth (% points) 8.05 -17.48 15.76 41.42 53.01
NOC employment share of country workforce (%) 0.10 0.08 0.10 0.14 0.21
Share of local content (%) 70.00
Noncommercial expenditures/total expenditures (%) 2.24 1.31 3.45 4.45 4.17
Noncore commercial activities net income/Total net income (%) 4.34 1.40 0.60 0.89 2.27
Price Subsidies/Revenues (%)
Domestic output use (%) 5.19 17.14 17.17 29.07 34.12
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.32 0.47 0.38 0.44 0.32
E&P production growth 0.57 1.00 0.35 1.00 0.25
Reserves replacement rate 0.89 0.00 0.41 0.65 0.49
Refinery utilization rate 0.00 0.49 0.44 0.00 0.33
Output / total assets 0.14 0.66 0.52 0.45 0.43
Output / total employees 0.02 0.21 0.16 0.13 0.09
Financial Performance 0.31 0.65 0.48 0.82 0.75
EBRTN / revenues 0.69 0.81 0.78 0.77 0.80
EBRTN / total assets 0.16 0.67 0.60 0.67 1.00
NCF / CAPEX 0.08 0.47 0.05 1.00 0.46
National Mission Performance 0.60 0.32 0.43 0.42 0.60
Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99
NOC – Country employment growth 0.78 0.00 0.87 0.76 1.00
NOC employment share of country workforce 0.05 0.04 0.07 0.11 0.18
Share of local content 0.59
Noncommercial expenditures/total expenditures 0.78 0.10 0.14 0.17 0.23
Noncore commercial activities net income/Total net income 1.00 0.74 0.29 0.38 0.96
Price Subsidies/Revenues
Domestic output use 0.00 0.05 0.07 0.12 0.24
VCI 0.41 0.48 0.43 0.56 0.56
102
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 75,791 76,561 73,482 74,067 74,277
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 43,258 43,276 43,271 43,315 43,302
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 347,884 348,768 345,654 346,520 346,645 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -0.58 -0.65 -0.92 -0.98 -0.97
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -1.00 -0.94 -0.77 -0.72 -0.62 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.28 -0.36 -0.45 -0.41 -0.32
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality -0.24 -0.33 -0.57 -0.44 -0.56 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.82 -0.87 -0.95 -0.95 -0.91 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control -0.75 -0.74 -0.77 -0.91 -0.98 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as % of Total Government
Revenues
17.0 25.0 33.0 44.0 50.0
"Oil and Gas in the Russian Federation," by G.
Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank
Conference on Oil and Gas in Federal Systems,
March, 2010; "Natural Resource Endowments, Governance, and the Domestic Revenue Effort,"
F. Bornhorst, S. Gupta, J. Thornton, IMF
Working Paper wp/08/170, July 2008.
Hydrocarbon Revenues as
% of GDP 7.0 13.0 18.0 21.0 25.0
"Oil and Gas in the Russian Federation," by G.
Kurlyandskaya, G. Pokatovich, M. Subbotin,
Center for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems,
March, 2010; "Natural Resource Endowments,
Governance, and the Domestic Revenue Effort," F. Bornhorst, S. Gupta, J. Thornton, IMF
Working Paper wp/08/170, July 2008.
WTO membership (yes-
1/no-0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
4,822 5,335 5,524 5,864 5,646 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil
Imports-000 BPD 40 40 44 62 48
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil
Exports)-(Costs Oil Imports) US $ Billion
60 98 123 147 194
Exports valued at Russia Urals oil price and imports valued at nominal oil price as reported
in 2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Gross Domestic
Product US $ Billion 592 765 991 1,290 1,680
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues (Costs) of Oil Exports
(Imports) as % of GDP
10.2 12.8 12.4 11.4 11.5 CEE calculation
Government Budget
Surplus/Deficit as % of Gross Domestic Product
9.9 8.0 6.2 http://www.tradingeconomics.com/Economics/G
overnment-Budget.aspx?Symbol=RUB
Stabilization Mechanisms such as petroleum funds
(yes-1/no-0)
1 1 1 1 1
Oil and Gas in the Russian Federation, by G.
Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank
Conference on Oil and Gas in Federal Systems,
March, 2010
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues
0 0 0 0 0
Oil and Gas in the Russian Federation, by G.
Kurlyandskaya, G. Pokatovich, M. Subbotin,
Center for Fiscal Policy, Moscow, World Bank
103
(yes-1/no-0) Conference on Oil and Gas in Federal Systems,
March, 2010
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is
performed by ministry (66); Regulatory function is performed by NOC (33); All three functions
combined in one entity (0).
CEE assessment
Country oil production
MM Barrels 3,565 3,486 3,565 3,641 3,609
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country gas production
BCF 20,191 20,486 20,971 20,906 21,190
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country MMBOE production
7,046 7,018 7,181 7,245 7,262 CEE calculation
NOC MMBOE Domestic
Production 3,595 4,153 4,372 4,465 4,433
Rosneft financial statements for relevant years
available at www.rosneft.com
Non-NOC percentage of
oil and gas production (%) 49.0 40.8 39.1 38.4 39.0 CEE calculation
Country Refinery Capacity - 000 BPD
5,371
5,421
5,473
5,522
5,547
BP Statistical Review of World Energy June
2009 available at
http://www.bp.com/statisticalreview
Net NOC Refinery Capacity - 000 BPD
(country level)
367
781
1,179
1,577
1,796 Rosneft financial statements for relevant years
Non-NOC percentage of refinery capacity (%,
country level)
93.2 85.6 78.5 71.4 67.6 CEE calculation. CEE calculation. NOC volumes include Rosneft and Gazprom refinery
volumes.
Total Revenues (local currency MM)
5,262
23,863
33,099
49,216
68,991
Rosneft financial statements for relevant years
Royalties and production
taxes (local currency MM) 1,717 11,545 18,130 23,922 36,816 Rosneft financial statements for relevant years
Income taxes (local
currency MM)
298
1,609
540
4,906
1,904 Rosneft financial statements for relevant years
Dividends paid to
government (local
currency MM)
45
54
373
374
488
Rosneft financial statements for relevant years
Royalties, production taxes, income taxes and
dividends paid to government by NOC as
percentage of total
revenues (%)
39.1 55.3 57.5 59.3 56.8 CEE Calculation
Effect of contract terms on investment decisions
No survey
No survey
No survey
3.15 3.06 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of taxation regime
on decision to invest
No
survey
No
survey
No
survey 3.13 2.71
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of cost of regulatory compliance on decision to
invest
No
survey
No
survey
No
survey 3.54 3.07
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of regulatory
uncertainty on decision to
invest
No survey
No survey
No survey
3.76 3.41 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of environmental
regulations on decision to invest
No
survey
No
survey
No
survey 2.64 2.73
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and
are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
104
(50); Objectives publicly disclosed but not
ranked and not publicly measured (25); No
public documentation of NOC objectives (0).
Rosneft financial statements for relevant years
NOC STRATEGY AND BEHAVIOR
Percentage of NOC
domestic upstream production operated by
specific NOC. If no data
yes-1/no-0.
1 1 1 1 1 % operated not disclosed in annual reports but company appears to be a substantial operating
entity
Percentage of NOC
domestic refining
production operated by specific NOC. If no data
yes-1/no-0.
1 1 1 1 1
% operated not disclosed in annual reports but
company appears to be a substantial operating entity
NOC upstream capital
expenditures as percentage of total capital
expenditures (%)
68.5 76.8 60.2 67.1 73.8 Rosneft financial statements for relevant years
NOC refining capital expenditures as percentage
of total capital
expenditures (%)
29.8 14.5 10.8 14.5 12.9 Rosneft financial statements for relevant years
NOC upstream oil equity production as percentage
of total NOC refining throughput (%). If no data,
yes/no.
259.3 301.7 306.8 229.1 198.5 Rosneft financial statements for relevant years
NOC international
revenues as percentage of total NOC revenues (%). If
no data yes-1/no-0.
0 0 0 0 0 Rosneft financial statements for relevant years
Joint ventures between the
NOC and third parties 66 66 66 66 66
Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC
partnerships exist domestically but not
internationally (66); NOC partnerships exist
internationally but not domestically (33); NOC
partnerships, JVs, alliances do not exist (0).
Rosneft financial statements for relevant years
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
0.0 0.0 17.0 17.0 17.0 Rosneft website www.rosneft.com
Percentage of independent BOD members (%)
0.0 0.0 33.0 33.0 33.0 Rosneft website www.rosneft.com
Appointment authority for NOC chairman and chief
executive officer
0 0 0 0 0
Scoring: (100)-The government has no
participation in deciding who will fill the
positions of Chairman/CEO; (50)-The government through its control of required
voting shares can influence, directly or indirectly, the appointments of Chairman/CEO
and (0) The Chairman and/or CEO is a direct
appointee of the government entity
Rosneft website www.rosneft.com
Independence of NOC
capital and budget processes
75 75 75 75 75
Scoring: No governmental approval of NOC
budget required (100); No governmental
approval of NOC budget required but certain capital expenditures require state approval
(75);NOC budget is proposed to and approved
by one central government entity (50); NOC budget is proposed to and approved by multiple
central government entities (25); NOC budget is
part of the national budget (0).
Rosneft website www.rosneft.com
NOC net cash flow after
taxes and dividends (local currency MM)
655 2,887 2,217 16,736 13,905 Rosneft financial statements for relevant years
NOC capital expenditures
(local currency MM) 4,378 2,090 4,378 6,870 8,779 Rosneft financial statements for relevant years
105
NOC financial
sustainability (%) 15.0 138.1 50.6 243.6 158.4
Measured by net cash flow after taxes and
dividends as percentage of capital expenditures %
CEE Calculation
NOC financial
transparency 100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange
(100); FS auditing performed and publicly
disclosed by independent international auditor (75); FS auditing performed and publicly
disclosed by independent domestic or
government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25);
No publicly available auditing (0)
Rosneft financial statements for relevant years
NOC upstream reserves
transparency 100 100 100 100 100
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75); reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and publicly disclosed (25); No publicly available
reserves auditing (0).
Rosneft financial statements for relevant years
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
106
18. China Petroleum & Chemical Corporation (China)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 207.00 222.00 257.00 283.00 293.00
Company oil production MM Bbls 274.00 279.00 285.00 292.00 297.00
E&P production MM BOE 311.67 319.40 331.77 343.51 350.33
E&P production growth % 2.88 2.48 3.87 3.54 1.99
Total net additions proved oil reserves MM Bbls 284.00 306.00 284.00 23.00 114.00
Total net additions proved gas reserves BCF 352.00 141.00 161.00 3,758.00 921.00
Total net additions proved gas reserves MM BOE 64.06 25.66 29.30 683.96 167.62
Reserve additions MM BOE 348.06 331.66 313.30 706.96 281.62
Reserves replacement rate % 111.68 103.84 94.43 205.81 80.39
Primary distillation capacity MBPD 3,189.04 3,289.73 3,676.03 3,799.32 4,222.60
Total refining throughput MBPD 2,730.82 2,874.66 3,131.51 3,318.49 3,468.49
Refinery utilization rate % 85.63 87.38 85.19 87.34 82.14
Assets $ MM 54,465.00 67,120.00 76,762.00 96,045.96 110,559.84
Output / total assets BOE/000$ 24.02 20.39 19.21 16.19 14.62
Employees # of people 389,451.00 364,528.00 340,886.00 334,377.00 358,304.00
Output / total employees BOE/000$ 3.36 3.75 4.33 4.65 4.51
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 80.035 86.29 113.41 124.17 85.50
Direct expenditures on social/economic development programs (national currency)
MM
291.00
203.00
98.00
158.00
396.00
Total revenue (national currency) Bn 619.92 823.27 1,071.40 1,204.84 1,452.10
EBRTN Bn 80.33 86.49 113.50 124.33 85.89
EBRTN / revenues % 12.96 10.51 10.59 10.32 5.92
EBRTN / total assets % 16.68 15.87 18.58 16.97 11.19
Total capital expenditures (national currency) Bn 76.62 75.93 82.55 99.95 99.64
net cash flow after taxes and dividends Bn 45.98 42.33 50.00 103.37 55.98
NCF/CAPEX % 60.02 55.75 60.57 103.42 56.18
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 389,451.00 364,528.00 340,886.00 334,377.00
358,304.00
Total number of NOC non-local employees # of people
Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00
NOC employment in native country (# people) # of people 385,556.49 360,882.72 337,477.14 331,033.23 354,720.96
NOC annual employment growth % -3.73 -6.40 -6.49 -1.91 7.16
Country Labor Force # of people
(000,000) 754,509.41 760,627.03 766,465.19 771,078.94 776,880.99
Country annual employment growth % 1.03 0.8 0.76 0.77 0.64
NOC - Country employment growth % points -4.77 -7.23 -7.24 -2.68 6.52
NOC employment share of country workforce % 0.05 0.05 0.04 0.04 0.05
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM 53,573.67 79,835.70 107,176.91 127,266.05 185,056.66
Share of local content %
NOC noncommercial expenditure (national currency) MM
NOC noncommercial expenditure $ MM 35.14 24.82 12.30 20.71 57.02
Noncommercial expenditure/Total expenditure % 0.07 0.03 0.01 0.02 0.03
Net income from non-core commercial business
activities $ MM
Net income from total commercial activities $ MM 4,994.00 5,474.00 6,952.00 7,373.41 5,892.38
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ MM 2,422.00 3,659.00 7,793.00 14,687.04
Total NOC Revenues $ MM 19,915.00 823,272.00 1,071,402.0 1,204,843.0 1,452,101.0
Price Subsidies/Revenues %
0.29 0.34 0.65 1.01
NOC domestic petroleum products production MMBOE 1,048.11 1,118.51 1,307.63 1,366.80 1,417.50
Country oil consumption MMBOE 2,471.87 2,549.20 2,694.35 2,825.90 2,919.58
Domestic output use % 42.40 43.88 48.53 48.37 48.55
107
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 2.88 2.48 3.87 3.54 1.99%
Reserves replacement rate (BOE, %) 111.68 103.84 94.43 205.81 80.39
Refinery utilization rate (%) 85.63 87.38 85.19 87.34 82.14
Output / total assets (BOE/'000$) 24.02 20.39 19.21 16.19 14.62
Output / total employees ('000 BOE) 3.36 3.75 4.33 4.65 4.51
Financial Performance
EBRTN / revenues (%) 12.96 10.51 10.59 10.32 5.92
EBRTN / total assets (%) 16.68 15.87 18.58 16.97 11.19%
NCF / CAPEX (%) 60.02 55.75 60.57 103.42 56.18
National Mission Performance
Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00
NOC – Country employment growth (% points) -4.77 -7.23 -7.24 -2.68 6.52
NOC employment share of country workforce (%) 0.05 0.05 0.04 0.04 0.05
Share of local content (%)
Noncommercial expenditures/total expenditures (%) 0.07 0.03 0.01 0.02 0.03
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%) 0.29 0.34 0.65 1.01
Domestic output use (%) 42.40 43.88 48.53 48.37 48.55
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.38 0.31 0.26 0.48 0.32
E&P production growth 0.33 0.05 0.33 0.57 0.39
Reserves replacement rate 0.56 0.51 0.12 1.00 0.53
Refinery utilization rate 0.46 0.42 0.22 0.28 0.21
Output / total assets 0.49 0.51 0.57 0.50 0.43
Output / total employees 0.04 0.05 0.05 0.05 0.06
Financial Performance 0.21 0.05 0.05 0.17 0.07
EBRTN / revenues 0.07 0.00 0.00 0.00 0.00
EBRTN / total assets 0.25 0.09 0.03 0.12 0.10
NCF / CAPEX 0.31 0.05 0.10 0.40 0.11
National Mission Performance 0.31 0.23 0.28 0.24 0.29
Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99
NOC – Country employment growth 0.36 0.20 0.42 0.17 0.30
NOC employment share of country workforce 0.02 0.02 0.03 0.03 0.04
Share of local content
Noncommercial expenditures/total expenditures 0.02 0.00 0.00 0.00 0.00
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues 0.01 0.02 0.02 0.04
Domestic output use 0.17 0.18 0.24 0.22 0.35
VCI 0.30 0.20 0.20 0.30 0.23
108
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource
endowment oil MMBBL 15,531 15,587 15,615 15,493 14,817
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 1,448 1,535 1,684 2,255 2,455
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Country specific resource
endowment MMBOE 24,640 25,240 26,204 29,678 30,261 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -1.45 -1.52 -1.68 -1.72 -1.72
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Political Stability -0.14 -0.25 -0.31 -0.28 -0.32 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.05 -0.12 0.06 0.19 0.24
http://info.worldbank.org/governance/wgi/index.
asp
WGI: Regulatory Quality -0.29 -0.25 -0.33 -0.24 -0.22 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.36 -0.41 -0.48 -0.45 -0.33 http://info.worldbank.org/governance/wgi/index.
asp
WGI: Corruption Control -0.58 -0.67 -0.53 -0.61 -0.44 http://info.worldbank.org/governance/wgi/index.
asp
Hydrocarbon Revenues as
% of Total Government Revenues
Hydrocarbon Revenues as
% of GDP
WTO membership (yes-1/no-0) over five years
1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -000 BPD
109 161 126 76 77 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil
Imports-000 BPD 2,780 2,904 3,379 3,670 3,857
US Energy Information Administration at
http://www.eia.gov/countries/?fips=CH
(Country Revenues Oil
Exports)-(Costs Oil Imports) US $ Billion
-35 -51 -72 -91 -130
Exports valued at China Daiqing oil price and imports valued at nominal oil price as reported
in 2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Gross Domestic
Product US $ Billion 1,930 2,240 2,660 3,380 4,333
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues (Costs) of Oil Exports
(Imports) as % of GDP
-1.8 -2.3 -2.7 -2.7 -3.0 CEE calculation
Government Budget Surplus/Deficit as % of
Gross Domestic Product
-2.4 -2.1 -1.6 -1.4 http://www.tradingeconomics.com/Economics/G
overnment-Budget.aspx?Symbol=CNY
Stabilization Mechanisms such as petroleum funds
(yes-1/no-0)
0 0 0 0 0 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues (yes-1/no-0)
0 0 0 0 0
China has been drafting an Energy Law since 2006. In Feb. 2010 it was submitted to the
Legislative Affairs Office of the State Council
and is expected to take effect in 2011. http://www.bjreview.com.cn/Energy/txt/2010-
02/25/content_248380.htm
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and
regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function
is performed by NOC (33); All three functions
combined in one entity (0).
CEE assessment
Country oil production MM Barrels
1,271 1,324 1,345 1,366 1,385
BP Statistical Review of World Energy June
2009 available at
http://www.bp.com/statisticalreview
109
Country gas production
BCF 1,460 1,742 2,068 2,445 2,679
BP Statistical Review of World Energy June
2009 available at http://www.bp.com/statisticalreview
Country MMBOE
production 1,523 1,624 1,702 1,788 1,847 CEE calculation
NOC MMBOE Domestic
Production 1,374 1,465 1,525 1,550 1,621
Production from Sinopec, Petrochina and
CNOOC Form 20Fs for relevant years
Non-NOC percentage of
oil and gas production (%) 9.8 9.8 10.4 13.3 12.2 CEE calculation
Country Refinery Capacity
- 000 BPD 6,289 6,587 7,029 7,511 7,732
BP Statistical Review of World Energy June 2009 available at
http://www.bp.com/statisticalreview
Net NOC Refinery
Capacity - 000 BPD (country level)
5,300 5,552 5,847 6,042 6,193 Sinopec and Petrochina Form 20Fs for relevant
year
Non-NOC percentage of
refinery capacity (%, country level)
15.7 15.7 16.8 19.6 19.9 CEE calculation.
Total Revenues (local
currency Bn) 619.9 823.3 1,071.4 1,204.8 1,452.1 Sinopec Form 20Fs for relevant year
Royalties and production
taxes (local currency MM) 16,345 17,186 28,636 34,304 56,799 Sinopec Form 20Fs for relevant year
Income taxes (local
currency MM) 18,092 19,877 23,512 -24,721 1,883 Sinopec Form 20Fs for relevant year
Dividends paid to government (local
currency MM)
22,956 35,890 45,871 16,225 11,734 Sinopec Form 20Fs for relevant year
Royalties, production
taxes, income taxes and dividends paid to
government by NOC as
percentage of total revenues (%)
9.3 8.9 9.1 2.1 4.8 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 2.42 2.16
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of taxation regime on decision to invest
No survey
No survey
No survey
2.97 2.64 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.84 2.11
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 3.03 2.6
Sources: Fraser Institute Global Petroleum
Survey 2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
2.16 1.78 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 25 25 25 25 25
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured
(50); Objectives publicly disclosed but not ranked and not publicly measured (25); No
public documentation of NOC objectives (0).
Sinopec Form 20Fs for relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream
production operated by
specific NOC. If no data yes-1/no-0.
1 1 1 1 1
% operated not disclosed in annual reports but
company appears to be a substantial operating
entity
Percentage of NOC
domestic refining 1 1 1 1 1
% operated not disclosed in annual reports but
company appears to be a substantial operating
110
production operated by
specific NOC. If no data yes-1/no-0.
entity
NOC upstream capital
expenditures as percentage of total capital
expenditures (%)
39.0 42.0 52.0 50.0 54.0 Sinopec Form 20Fs for relevant year
NOC refining capital
expenditures as percentage of total capital
expenditures (%)
20.0 25.0 27.0 21.0 12.0 Sinopec Form 20Fs for relevant year
NOC upstream oil equity production as percentage
of total NOC refining
throughput (%). If no data, yes/no.
22.0 23.0 20.0 19.0 18.0 Sinopec Form 20Fs for relevant year
NOC international revenues as percentage of
total NOC revenues (%). If
no data yes-1/no-0.
0.0 0.0 0.0 0.0 0.0
Sinopec Form 20Fs for relevant year.
International upstream assets appear to reside in
parent company SGC as Sinopec does not report
international assets in its Forms 20Fs. SGC
upstream assets are in Russia, Iran and Canada.
Joint ventures between the
NOC and third parties 66 66 66 66 66
Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC
partnerships exist domestically but not
internationally (66); NOC partnerships exist internationally but not domestically (33); NOC
partnerships, JVs, alliances do not exist (0).
Sinopec Form 20Fs for relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of
specific NOC (%)
23.0 23.9 23.5 23.5 24.2 Sinopec Form 20Fs for relevant year
Percentage of independent BOD members (%)
28.57 23.08 27.27 27.73 27.73 Sinopec Form 20Fs for relevant year
Appointment authority for NOC chairman and chief
executive officer
50 50 50 50 50
Scoring: (100)-The government has no
participation in deciding who will fill the positions of Chairman/CEO; (50)-The
government through its control of required
voting shares can influence, directly or indirectly, the appointments of Chairman/CEO
and (0) The Chairman and/or CEO is a direct
appointee of the government entity
Sinopec Form 20Fs for relevant year
Independence of NOC
capital and budget processes
75 75 75 75 75
Scoring: No governmental approval of NOC
budget required (100); No governmental
approval of NOC budget required but certain capital expenditures require state approval
(75);NOC budget is proposed to and approved
by one central government entity (50); NOC budget is proposed to and approved by multiple
central government entities (25); NOC budget is
part of the national budget (0).
Sinopec Form 20Fs for relevant year
NOC net cash flow after
taxes and dividends (local currency MM)
45,983 42,327 50,000 103,369 55,978 Sinopec Form 20Fs for relevant year
NOC capital expenditures
(local currency MM) 76,615 75,927 82,545 99,946 99,636 Sinopec Form 20Fs for relevant year
NOC financial sustainability (%)
60.02 55.75 60.57 103.42 56.18
Measured by net cash flow after taxes and dividends as percentage of capital expenditures
%
CEE Calculation
NOC financial transparency
100 100 100 100 100
Scoring: NOC financial statement auditing performed by independent international auditor
and files reports with international exchange (100); FS auditing performed and publicly
disclosed by independent international auditor
(75); FS auditing performed and publicly disclosed by independent domestic or
government auditor (50) ; FS auditing performed
internally by N OC and publicly disclosed (25);
111
No publicly available auditing (0)
Sinopec Form 20Fs for relevant year
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing
performed by independent international firm and files reports with international exchange (100);
reserves auditing performed and publicly
disclosed by independent international firm (75); reserves auditing performed and publicly
disclosed by independent domestic firm (50);
reserves auditing performed internally and publicly disclosed (25); No publicly available
reserves auditing (0).
Sinopec Form 20Fs for relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil
Companies and Value Creation, volume I, chapter 4.
112
19. Sonatrach S.A. (Algeria)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 5,081.76 5,364.08 5,293.50 5,399.37 5,434.66
Company oil production MM Bbls 623.05 630.38 623.05 630.38 615.72
E&P production (BOE) MM BOE 1,627.00 1,568.00 1,554.00 1,574.00 1,566.00
E&P production growth % 15.04 -3.63 -0.89 1.29 -0.51
Total net additions proved oil reserves MM Bbls 469.12
Total net additions proved gas reserves BCF 1,762.04
Total net additions proved gas reserves MM BOE 320.69
Reserve additions (BOE) MM BOE 789.81
Reserves replacement rate % 50.82
Primary distillation capacity MBPD 450.00 450.00 450.00 450.00 450.00
Total refining throughput MBPD 366.12 366.66 380.12 392.27 419.72
Refinery utilization rate % 81.36 81.48 84.47 87.17 93.27
Assets $ MM 37,087.50 43,105.30 52,217.23 66,648.47 81,010.42
Output / total assets BOE/000$ 47.47 39.48 32.42 25.76 21.22
Employees # of people 36,626.00 37,205.00 38,012.00 39,733.00 41,204.00
Output / total employees BOE/000$ 48.07 45.74 44.53 43.22 41.72
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 1,629.28 2,548.30 2,824.38 3,028.56 3,656.42
Direct expenditures on social/economic development programs (national currency)
Bn
Total revenue (national currency) Bn 2,450.77 3,535.76 4,222.75 4,346.63 5,218.45
EBRTN Bn 1,629.28 2,548.30 2,824.38 3,028.56 3,656.42
EBRTN / revenues % 66.48 72.07 66.88 69.68 70.07
EBRTN / total assets % 60.96 80.68 74.45 65.01 71.36
Total capital expenditures (national currency) Bn 263.81 297.35 349.91 450.77 597.68
net cash flow after taxes and dividends Bn 513.95 714.93 736.96 877.50 878.79
NCF/CAPEX % 194.82 240.43 210.62 194.67 147.04
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 36,626.00 37,205.00 38,012.00 39,733.00 41,204.00
Total number of NOC non-local employees # of people 3.00 1.00 0 1.00 1.00
Share of nationals in NOC workforce % 99.99 100.00 100.00 100.00 100.00
NOC employment in native country (# people) # of people 35,527.22 36,088.85 36,871.64 38,541.01 39,967.88
NOC annual employment growth % 1.59 1.58 2.17 4.53 3.70
Country Labor Force # of people
(000,000) 10,529.48 11,178.72 11,971.25 12,136.54 12,307.00
Country annual employment growth % 11.58 6.17 7.09 1.38 1.40
NOC - Country employment growth % points -9.99 -4.59 -4.92 3.15 2.30
NOC employment share of country workforce % 0.34 0.32 0.31 0.32 0.32
NOC local purchases goods and services $ MM
NOC total purchases goods and services $ MM
Share of local content %
NOC noncommercial expenditure (national currency) MM
NOC noncommercial expenditures $ MM
Noncommercial expenditure/Total expenditure %
Net income from non-core commercial business activities
(national currency) Bn 40.25 66.69 85.20 102.39 123.11
Net income from total commercial activities (national
currency) Bn 2,450.77 3,535.76 4,222.75 4,346.63 5,218.45
Net income noncore commercial activities/Net income % 1.64 1.89 2.02 2.36 2.36
Price subsidies provided by NOC (national currency) Bn 369.49 585.72 767.15 806.78 1,087.46
Total NOC revenues (national currency) Bn 2,450.77 3,535.76 4,222.75 4,346.63 5,218.45
Price Subsidies/Revenues % 15.1 16.6 18.2 18.6 20.8
NOC domestic petroleum products production MMBOE 133.63 133.77 135.37 139.17 148.91
Country oil consumption MMBOE 87.75 91.74 94.82 105.29 113.50
Domestic output use % 152.28 145.81 142.76 132.18 131.19
113
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 15.04 -3.63 -0.89 1.29 -0.51
Reserves replacement rate (BOE, %) 50.82
Refinery utilization rate (%) 81.36 81.48 84.47 87.17 93.27
Output / total assets (BOE/'000$) 47.47 39.48 32.42 25.76 21.22
Output / total employees ('000 BOE) 48.07 45.74 44.53 43.22 41.72
Financial Performance
EBRTN / revenues (%) 66.48 72.07 66.88 69.68 70.07
EBRTN / total assets (%) 60.96 80.68 74.45 65.01 71.36
NCF / CAPEX (%) 194.82 240.43 210.62 194.67 147.04
National Mission Performance
Share of nationals in NOC workforce (%) 99.99 100.00 100.00 100.00 100.00
NOC – Country employment growth (% points) -9.99 -4.59 -4.92 3.15 2.30
NOC employment share of country workforce (%) 0.34 0.32 0.31 0.32 0.32
Share of local content (%)
Noncommercial expenditures/total expenditures (%)
Noncore commercial activities net income/Total net income (%) 1.64 1.89 2.02 2.36 2.36
Price Subsidies/Revenues (%) 15.08 16.57 18.17 18.56 20.84
Domestic output use (%) 152.28 145.81 142.76 132.18 131.19
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.74 0.54 0.43 0.54 0.47
E&P production growth 0.67 0.03 0.25 0.51 0.31
Reserves replacement rate 0.02
Refinery utilization rate 0.40 0.33 0.21 0.28 0.40
Output / total assets 1.00 1.00 0.98 0.80 0.63
Output / total employees 0.87 0.80 0.67 0.57 0.54
Financial Performance 0.93 0.94 0.86 0.85 0.76
EBRTN / revenues 0.81 0.81 0.71 0.75 0.76
EBRTN / total assets 1.00 1.00 1.00 1.00 1.10
NCF / CAPEX 0.99 1.00 0.88 0.79 0.42
National Mission Performance 0.49 0.61 0.72 0.61 0.71
Share of nationals in NOC workforce 1.00 1.00 1.00 1.00 1.00
NOC – Country employment growth 0.19 0.25 0.46 0.25 0.24
NOC employment share of country workforce 0.15 0.17 0.22 0.26 0.28
Share of local content
Noncommercial expenditures/total expenditures
Noncore commercial activities net income/Total net income 0.38 1.00 0.98 1.00 1.00
Price Subsidies/Revenues 0.51 0.53 0.90 0.50 0.75
Domestic output use 0.68 0.70 0.74 0.65 1.00
VCI 0.72 0.69 0.67 0.67 0.65
114
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource endowment oil MMBBL
11,800 12,270 12,270 12,200 12,200 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 4,545 4,504 4,504 4,504 4,504
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource endowment MMBOE
40,388 40,601 40,601 40,530 40,530 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability -0.79 -0.74 -0.96 -1.00 -1.05 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability -1.43 -1.13 -1.02 -1.12 -1.15 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness -0.45 -0.35 -0.45 -0.53 -0.5 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality -0.59 -0.56 -0.66 -0.66 -0.79 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law -0.66 -0.7 -0.61 -0.68 -0.7 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control -0.60 -0.44 -0.43 -0.43 -0.44 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as % of Total Government
Revenues
65.0 65.0 66.0 66.0 66.0
"Natural Resource Endowments, Governance and the
Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper,
WP/08/170, July 2008;
http://www.swfinstitute.org/fund/algeria.php
Hydrocarbon Revenues as %
of GDP 22.0 22.0 30.0 33.0 33.0
"Natural Resource Endowments, Governance and the
Domestic Revenue Effort," by F. Bornhorst, S.
Gupta, J. Thornton, IMF Working Paper, WP/08/170, July 2008;
http://www.swfinstitute.org/fund/algeria.php
WTO membership (yes-1/no-
0) over five years 0 0 0 0 0 www.wto.org
OPEC membership (yes-
1/no-0) over five years 1 1 1 1 1 www.opec.org
Country Crude Oil Exports -000 BPD
893 970 947 1,254 841 2008 OPEC Annual Statistical Bulletin at www.opec.org
Country Crude Oil Imports-
000 BPD
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil Exports)-(Costs Oil Imports)
US $ Billion
32 46 53 59 77 Algeria's values of exports as reported in the 2008
OPEC Annual Statistical Bulletin at www.opec.org
Country Gross Domestic Product US $ Billion
85 102 116 136 167 World Bank Development Indicators: http://data.worldbank.org/indicator
Country Net Revenues
(Costs) of Oil Exports (Imports) as % of GDP
37.6 45.1 45.7 43.4 46.1 CEE calculation
Government Budget
Surplus/Deficit as % of Gross
Domestic Product
5.3 13.6 13.8 http://earthtrends.wri.org/searchable_db/index
Stabilization Mechanisms
such as petroleum funds (yes-
1/no-0)
1 1 1 1 1 http://www.swfinstitute.org/
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national
policy addressing
hydrocarbon sector issues (yes-1/no-0)
1 1 1 1 1 Sonatrach website at www.sonatrach-dz.com
Institutional structure 33 66 66 66 66
Scoring: Independent NOC, Ministry and regulatory
function (100); Regulatory function is performed by
ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one
entity (0).
"Algeria: The Algerian Hydrocarbons Regulations," by R. Palmer, C. Bensoussan, F. Elbar, S. Sayah,
115
10/5/2009 available at
http://www.mondaq.com/article.asp?articleid=86988
Country oil production MM Barrels
710 735 731 736 727 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country gas production BCF 6,495 6,813 6,884 6,989 7,095 Gross country gas production as reported in the 2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country MMBOE production 1,830 1,910 1,918 1,941 1,950 CEE calculation
NOC MMBOE Domestic
Production 1,627 1,568 1,554 1,574 1,566
Sonatrach annual reports for relevant years available
at www.sonatrach-dz.com
Non-NOC percentage of oil and gas production (%)
11.1 17.9 19.0 18.9 19.7 CEE calculation
Country Refinery Capacity -
000 BPD 450 450 450 450 450
US Energy Information Administration at
www.eia.doe.gov/emeu/cabs/Algeria/pdf.pdf
Net NOC Refinery Capacity -
000 BPD (country level) 450 450 450 450 450 Sonatrach annual reports for the relevant year
Non-NOC percentage of
refinery capacity (%, country
level)
0.0 0.0 0.0 0.0 0.0 CEE calculation.
Total Revenues (local
currency Bn) 2,450.8 3,535.8 4,222.7 4,346.5 5,218.5 Sonatrach annual reports for the relevant year
Royalties and production
taxes (local currency MM) 431,040 608,640 6,065 10,545 2,251,161 Sonatrach annual reports for the relevant year
Income taxes (local currency Bn)
1,048.1 1,584.0 1,825.0 1,847.3 260.9 Sonatrach annual reports for the relevant year
Dividends paid to
government (local currency MM)
Royalties, production taxes,
income taxes and dividends paid to government by NOC
as percentage of total
revenues (%)
60.4 62.0 43.4 42.7 48.1 CEE Calculation
Effect of contract terms on investment decisions
No survey
No survey
No survey
2.97 3.03 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
Effect of taxation regime on
decision to invest
No
survey
No
survey
No
survey 2.67 2.50
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of cost of regulatory
compliance on decision to invest
No
survey
No
survey
No
survey 2.83 2.50
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 3.03 3.03
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of environmental
regulations on decision to
invest
No survey
No survey
No survey
1.50 2.00 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100);
Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured (50);
Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of
NOC objectives (0).
Sonatrach annual reports for the relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic upstream production operated
by specific NOC. If no data yes-1/no-0.
75.0 72.0 71.0 1 1 Sonatrach annual reports for the relevant year
116
Percentage of NOC domestic
refining production operated by specific NOC. If no data
yes-1/no-0.
100.0 100.0 100.0 100.0 100.0 Sonatrach annual reports for the relevant year
NOC upstream capital expenditures as percentage of
total capital expenditures (%)
75.0 75.4 74.6 70.1 66.9 Sonatrach annual reports for the relevant year
NOC refining capital
expenditures as percentage of total capital expenditures (%)
6.0 6.1 4.2 14.2 18.9 Sonatrach annual reports for the relevant year
NOC upstream oil equity
production as percentage of total NOC refining
throughput (%). If no data,
yes/no.
262.0 281.0 286.0 286.0 277.0 Sonatrach annual reports for the relevant year
NOC international revenues as percentage of total NOC
revenues (%). If no data yes-
1/no-0.
1 1 1 1 1 Sonatrach annual reports for the relevant year
Joint ventures between the NOC and third parties
100 100 100 100 100
Scoring: NOC partnerships/JVs exist domestically
and internationally (100); NOC partnerships exist
domestically but not internationally (66); NOC partnerships exist internationally but not
domestically (33); NOC partnerships, JVs, alliances
do not exist (0).
Sonatrach annual reports for the relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-
government ownership of specific NOC (%)
0.0 0.0 0.0 0.0 0.0 Sonatrach annual reports for the relevant year
Percentage of independent
BOD members (%) 0.0 0.0 0.0 0.0 0.0 Sonatrach annual reports for the relevant year
Appointment authority for
NOC chairman and chief
executive officer
0 0 0 0 0
Scoring: (100)-The government has no participation in deciding who will fill the positions of
Chairman/CEO; (50)-The government through its
control of required voting shares can influence, directly or indirectly, the appointments of
Chairman/CEO and (0) The Chairman and/or CEO is
a direct appointee of the government entity
Sonatrach annual reports for the relevant year
Independence of NOC capital
and budget processes 25 25 25 25 25
Scoring: No governmental approval of NOC budget
required (100); No governmental approval of NOC
budget required but certain capital expenditures require state approval (75);NOC budget is proposed
to and approved by one central government entity
(50); NOC budget is proposed to and approved by multiple central government entities (25); NOC
budget is part of the national budget (0).
Sonatrach annual reports for the relevant year
NOC net cash flow after
taxes and dividends (local
currency MM)
513,947 714,931 736,961 877,503 878,792 Sonatrach annual reports for the relevant year
NOC capital expenditures
(local currency MM) 263,811 297,354 349,906 450,768 597,675 Sonatrach annual reports for the relevant year
NOC financial sustainability (%)
194.8 240.4 210.6 194.7 147.0
Measured by net cash flow after taxes and dividends
as percentage of capital expenditures %
CEE Calculation
NOC financial transparency 50 50 50 50 50
Scoring: NOC financial statement auditing
performed by independent international auditor and
files reports with international exchange (100); FS auditing performed and publicly disclosed by
independent international auditor (75); FS auditing
performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing
performed internally by N OC and publicly disclosed (25); No publicly available auditing (0)
Sonatrach annual reports for the relevant year
117
NOC upstream reserves transparency
0 0 0 0 0
Scoring: NOC oil & gas reserves auditing performed
by independent international firm and files reports with international exchange (100); reserves auditing
performed and publicly disclosed by independent
international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm
(50); reserves auditing performed internally and
publicly disclosed (25); No publicly available reserves auditing (0).
Sonatrach annual reports for the relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
118
20. StatoilHydro ASA. (Norway)
(a) Value creation index components
Operational Performance
unit 2004 2005 2006 2007 2008
Company gas production BCF 781.00 953.00 1,335.00 1,352.00 1,468.60
Company oil production MM Bbls 265.00 257.00 385.00 391.00 386.48
E&P production (BOE) MM BOE 402.00 427.00 624.00 632.00 642.00
E&P production growth % 1.02 6.22 46.14 1.28 1.58
Total net additions proved oil reserves MM Bbls 151.00 286.00 197.00 357.00 189.00
Total net additions proved gas reserves BCF 338.00 827.00 1,045.00 976.00 177.00
Total net additions proved gas reserves MM BOE 61.52 150.51 190.19 177.63 32.21
Reserve additions (BOE) MM BOE 211.00 427.00 386.00 540.00 220.00
Reserves replacement rate % 52.49 100.00 61.86 85.44 34.27
Primary distillation capacity MBPD 337.00 337.00 337.00 337.00 337.00
Total refining throughput MBPD 317.00 320.00 320.00 313.00 302.00
Refinery utilization rate % 94.07 94.96 94.96 92.88 89.61
Assets $ MM 41,057.83 42,875.22 73,294.41 89,319.41 82,631.86
Output / total assets BOE/000$ 12.61 12.68 10.11 8.35 9.10
Employees # of people 23,899.00 25,644.00 25,408.00 29,500.00 29,496.00
Output / total employees BOE/000$ 21.66 21.21 29.16 25.30 25.50
Financial Performance
Unit 2004 2005 2006 2007 2008
Earnings before interest & taxes (national currency) Bn 65.11 95.10 166.16 137.20 198.83
Direct expenditures on social/economic development programs (national currency)
MM 43.79 54.00 67.50 241.00 233.00
Total revenue (national currency) Bn 306.22 393.30 521.48 522.80 656.02
EBRTN Bn 65.15 95.15 166.23 137.45 199.07
EBRTN / revenues % 21.28 24.19 31.88 26.29 30.34
EBRTN / total assets % 26.14 32.93 36.23 28.44 34.42
Total capital expenditures (national currency) Bn 32.55 45.79 49.37 68.35 78.47
net cash flow after taxes and dividends Bn 32.42 44.77 70.84 68.23 75.45
NCF/CAPEX % 99.60 97.78 143.50 99.82 96.15
National Mission Performance
Unit 2004 2005 2006 2007 2008
Total number of NOC local employees # of people 12,710.00 12,214.00 13,987.00 18,102.00 18,001.00
Total number of NOC non-local employees # of people 11,189.00 13,430.00 11,421.00 11,398.00 11,495.00
Share of nationals in NOC workforce % 53.18 47.63 55.05 61.36 61.03
NOC employment in native country (# people) # of people 12,710.00 12,214.00 13,987.00 18,102.00 18,001.00
NOC annual employment growth % 7.39 -3.90 14.52 29.42 -0.56
Country Labor Force # of people
(000,000) 2,446.25 2,455.90 2,491.62 2,556.88 2,636.96
Country annual employment growth % 0.43 0.39 1.45 2.62 3.13
NOC - Country employment growth % points 6.96 -4.30 13.06 26.80 -3.69
NOC employment share of country workforce % 0.98 1.04 1.02 1.15 1.12
NOC local purchases goods and services $ MM 7,397.03 6,824.93 8,450.48 17,285.40
NOC total purchases goods and services $ MM 10,345.96 9,317.51 10,814.70 20,020.89
Share of local content % 71.50 73.25 78.14 86.34
NOC noncommercial expenditure (national currency) MM 43.79 54.00 67.50 241.00 233.00
NOC noncommercial expenditure $ MM 7.21 8.01 10.78 44.55 33.29
Noncommercial expenditure/Total expenditure % 0.07 0.09 0.10 0.22
Net income from non-core commercial business
activities $ MM
Net income from total commercial activities $ MM 4,104.78 4,559.35 8,282.27 8,251.57 6,181.43
Net income noncore commercial activities/Net
income %
Price subsidies provided by NOC $ MM
Total NOC Revenues $ MM 50,447.78 58,352.82 83,303.83 96,635.30 93,717.14
Price Subsidies/Revenues %
NOC domestic petroleum products production MMBOE 60.31 71.28 71.61 69.10 64.61
Country oil consumption MMBOE 76.66 77.32 79.26 81.17 76.78
Domestic output use % 78.68 92.19 90.34 85.13 84.15
119
(b) Value creation index
2004 2005 2006 2007 2008
Operational Performance
E&P production growth (%) 1.02 6.22 46.14 1.28 1.58
Reserves replacement rate (BOE, %) 52.49 100.00 61.86 85.44 34.27
Refinery utilization rate (%) 94.07 94.96 94.96 92.88 89.61
Output / total assets (BOE/'000$) 12.61 12.68 10.11 8.35 9.10
Output / total employees ('000 BOE) 21.66 21.21 29.16 25.30 25.50
Financial Performance
EBRTN / revenues (%) 21.28 24.19 31.88 26.29 30.34
EBRTN / total assets (%) 26.14 32.93 36.23 28.44 34.42
NCF / CAPEX (%) 99.60 97.78 143.50 99.82 96.15
National Mission Performance
Share of nationals in NOC workforce (%) 53.18 47.63 55.05 61.36 61.03
NOC - Country employment growth (% points) 6.96 -4.30 13.06 26.80 -3.69
NOC employment share of country workforce (%) 0.98 1.04 1.02 1.15 1.12
Share of local content (%) 71.50 73.25 78.14 86.34
Noncommercial expenditures/total expenditures (%) 0.07 0.09 0.10 0.22
Noncore commercial activities net income/Total net income (%)
Price Subsidies/Revenues (%)
Domestic output use (%) 78.68 92.19 90.34 85.13 84.15
(c) Normalized value creation index
2004 2005 2006 2007 2008
Operational Performance 0.37 0.35 0.43 0.43 0.28
E&P production growth 0.27 0.06 1.00 0.51 0.38
Reserves replacement rate 0.38 0.50 0.05 0.67 0.09
Refinery utilization rate 0.58 0.54 0.39 0.38 0.34
Output / total assets 0.25 0.31 0.29 0.25 0.27
Output / total employees 0.38 0.36 0.44 0.33 0.33
Financial Performance 0.37 0.26 0.38 0.31 0.34
EBRTN / revenues 0.19 0.18 0.27 0.20 0.29
EBRTN / total assets 0.41 0.33 0.34 0.33 0.49
NCF / CAPEX 0.51 0.27 0.53 0.38 0.25
National Mission Performance 0.36 0.41 0.53 0.57 0.56
Share of nationals in NOC workforce 0.43 0.37 0.43 0.52 0.52
NOC – Country employment growth 0.75 0.26 0.82 0.57 0.15
NOC employment share of country workforce 0.45 0.55 0.71 0.93 0.95
Share of local content 0.17 0.83 0.75 0.98
Noncommercial expenditures/total expenditures 0.02 0.01 0.00 0.01
Noncore commercial activities net income/Total net income
Price Subsidies/Revenues
Domestic output use 0.34 0.43 0.46 0.41 0.63
VCI 0.37 0.34 0.45 0.43 0.39
120
(d) Value drivers
2004 2005 2006 2007 2008 Source
GEOLOGY
Country specific resource endowment oil MMBBL
9,722 9,688 8,546 8,168 7,491 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country specific resource
endowment gas BCM 2,386 2,358 2,302 2,313 2,215
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Country specific resource endowment MMBOE
24,730 24,520 23,025 22,717 21,423 CEE calculation
STATE CONTEXT
WGI: Voice and
Accountability 1.73 1.65 1.49 1.53 1.53 http://info.worldbank.org/governance/wgi/index.asp
WGI: Political Stability 1.36 1.29 1.18 1.25 1.33 http://info.worldbank.org/governance/wgi/index.asp
WGI: Government
Effectiveness 2.16 1.99 2.13 2.14 1.95 http://info.worldbank.org/governance/wgi/index.asp
WGI: Regulatory Quality 1.54 1.47 1.35 1.44 1.34 http://info.worldbank.org/governance/wgi/index.asp
WGI: Rule of Law 1.98 1.92 2.00 1.98 1.96 http://info.worldbank.org/governance/wgi/index.asp
WGI: Corruption Control 1.95 1.96 2.07 2.05 1.88 http://info.worldbank.org/governance/wgi/index.asp
Hydrocarbon Revenues as %
of Total Government
Revenues
28.0 33.0 36.0 31.0 34.0
Facts 2009, 2008, 2007, 2006 and 2005 published by
the Norwegian Ministry of Petroleum and Energy and the Norwegian Petroleum Directorate available
at www.npd.no/en/Publications/Facts
Hydrocarbon Revenues as %
of GDP 21.0 25.0 25.0 24.0 25.0
Facts 2009, 2008, 2007, 2006 and 2005 published by the Norwegian Ministry of Petroleum and Energy
and the Norwegian Petroleum Directorate available
at www.npd.no/en/Publications/Facts
WTO membership (yes-1/no-
0) over five years 1 1 1 1 1 www.wto.org
OPEC membership (yes-
1/no-0) over five years 0 0 0 0 0 www.opec.org
Country Crude Oil Exports -
000 BPD
2,731
2,377
2,210
2,012
1,702
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Crude Oil Imports-
000 BPD
2009 OPEC Annual Statistical Bulletin at
www.opec.org
(Country Revenues Oil
Exports)-(Costs Oil Imports)
US $ Billion
38 47 53 54 62
Exports valued at Ekofisk oil price as reported in
2008 OPEC Annual Statistical Bulletin at
www.opec.org
Country Gross Domestic
Product US $ Billion 259 302 337 388 450
World Bank Development Indicators:
http://data.worldbank.org/indicator
Country Net Revenues (Costs) of Oil Exports
(Imports) as % of GDP
14.7 15.7 15.6 13.9 13.7 CEE calculation
Government Budget
Surplus/Deficit as % of Gross Domestic Product
8.3 11.7 15.2 18.5 18.0 http://www.tradingeconomics.com/Economics/Gover
nment-Budget.aspx?Symbol=NOK
Stabilization Mechanisms
such as petroleum funds (yes-
1/no-0)
1 1 1 1 1
Facts 2009, 2008, 2007, 2006 and 2005 published by
the Norwegian Ministry of Petroleum and Energy and the Norwegian Petroleum Directorate available
at www.npd.no/en/Publications/Facts
PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE
Publicly disclosed national policy addressing
hydrocarbon sector issues
(yes-1/no-0)
1 1 1 1 1 StatoilHydro Form 20Fs for the relevant year
Institutional structure 66 66 66 66 66
Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by
ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one
entity (0).
121
StatoilHydro Form 20Fs for the relevant year
Country oil production MM Barrels
1,164
1,084
1,014
933
896
BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country gas production BCF
2,763
3,000
3,094
3,166
3,495 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview
Country MMBOE production
1,640
1,601
1,547
1,479
1,499 CEE calculation
NOC MMBOE Domestic
Production 363 359 539 519 542 StatoilHydro Form 20Fs for the relevant year
Non-NOC percentage of oil
and gas production (%) 77.9 77.6 65.2 64.9 63.8 CEE calculation
Country Refinery Capacity -
000 BPD 310 310 310 310 310
BP Statistical Review of World Energy June 2009
available at http://www.bp.com/statisticalreview
Net NOC Refinery Capacity - 000 BPD (country level)
141 141 141 141 141 StatoilHydro Form 20Fs for the relevant year
Non-NOC percentage of refinery capacity (%, country
level)
54.5 54.5 54.5 54.5 54.5 CEE calculation.
Total Revenues (local currency MM)
306,218 393,298 521,482 522,797 656,020 StatoilHydro Form 20Fs for the relevant year
Royalties and production taxes (local currency MM)
Insignificant in Norway per disclosures in the annual
"Facts" publications of the Norwegian Petroleum Directorate available at
www.npd.no/en/Publications/Facts
Income taxes (local currency MM)
45,425 60,039 119,389 102,170 137,197 StatoilHydro Form 20Fs for the relevant year
Dividends paid to
government (local currency MM)
4,793 8,152 36,811 31,695 30,722 StatoilHydro Form 20Fs for the relevant year
Royalties, production taxes,
income taxes and dividends
paid to government by NOC as percentage of total
revenues (%)
16.4 17.3 30.0 25.6 25.6 CEE Calculation
Effect of contract terms on
investment decisions
No
survey
No
survey
No
survey 2.5 2.17
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of taxation regime on
decision to invest
No
survey
No
survey
No
survey 2.43 2.23
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of cost of regulatory compliance on decision to
invest
No
survey
No
survey
No
survey 2.47 2.81
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of regulatory uncertainty on decision to
invest
No
survey
No
survey
No
survey 1.80 1.66
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
Effect of environmental
regulations on decision to invest
No
survey
No
survey
No
survey 2.63 2.95
Sources: Fraser Institute Global Petroleum Survey
2007 and 2008
NOC objectives 75 75 75 75 75
Scoring: Priority ranked publicly disclosed
objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are
publicly measured (75); Objectives publicly
disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not
publicly measured (25); No public documentation of
NOC objectives (0).
StatoilHydro Form 20Fs for the relevant year
NOC STRATEGY AND BEHAVIOR
Percentage of NOC domestic
upstream production operated 98.0 98.0 96.0 96.0 92.0
% operated not disclosed in annual reports but
company appears to be a substantial operating entity
122
by specific NOC. If no data
yes-1/no-0.
Percentage of NOC domestic refining production operated
by specific NOC. If no data
yes-1/no-0.
100.0 100.0 100.0 100.0 100.0 StatoilHydro Form 20Fs for the relevant year
NOC upstream capital
expenditures as percentage of
total capital expenditures (%)
83.7 89.1 90.4 89.7 87.6 StatoilHydro Form 20Fs for the relevant year
NOC refining capital expenditures as percentage of
total capital expenditures (%)
9.3 4.3 3.9 6.4 8.9 StatoilHydro Form 20Fs for the relevant year
NOC upstream oil equity production as percentage of
total NOC refining
throughput (%). If no data, yes/no.
310.3 307.7 329.1 343.0 350.9 StatoilHydro Form 20Fs for the relevant year
NOC international revenues
as percentage of total NOC
revenues (%). If no data yes-1/no-0.
3.3 5.1 6.3 8.0 7.0 StatoilHydro Form 20Fs for the relevant year
Joint ventures between the
NOC and third parties 100 100 100 100 100
Scoring: NOC partnerships/JVs exist domestically
and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC
partnerships exist internationally but not
domestically (33); NOC partnerships, JVs, alliances do not exist (0).
StatoilHydro Form 20Fs for the relevant year
NOC CORPORATE GOVERNANCE
Percentage of non-government ownership of
specific NOC (%)
29.90 29.90 29.04 37.50 29.17 StatoilHydro Form 20Fs for the relevant year
Percentage of independent
BOD members (%) 66.0 66.0 70.0 70.0 70.0 StatoilHydro Form 20Fs for the relevant year
Appointment authority for NOC chairman and chief
executive officer
50 50 50 50 50
Scoring: (100)-The government has no participation
in deciding who will fill the positions of
Chairman/CEO; (50)-The government through its
control of required voting shares can influence,
directly or indirectly, the appointments of
Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity
StatoilHydro Form 20Fs for the relevant year
Independence of NOC capital and budget processes
75 75 75 75 75
Scoring: No governmental approval of NOC budget
required (100); No governmental approval of NOC budget required but certain capital expenditures
require state approval (75);NOC budget is proposed
to and approved by one central government entity (50); NOC budget is proposed to and approved by
multiple central government entities (25); NOC
budget is part of the national budget (0).
StatoilHydro Form 20Fs for the relevant year
NOC net cash flow after
taxes and dividends (local currency MM)
32,417 44,769 70,837 68,231 75,451 StatoilHydro Form 20Fs for the relevant year
NOC capital expenditures
(local currency MM) 32,548 45,785 49,365 68,354 78,470 StatoilHydro Form 20Fs for the relevant year
NOC financial sustainability
(%) 99.6 97.8 143.5 99.8 96.2
Measured by net cash flow after taxes and dividends as percentage of capital expenditures %
CEE Calculation
NOC financial transparency 100 100 100 100 100
Scoring: NOC financial statement auditing
performed by independent international auditor and files reports with international exchange (100); FS
auditing performed and publicly disclosed by independent international auditor (75); FS auditing
performed and publicly disclosed by independent
domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed
(25); No publicly available auditing (0)
StatoilHydro Form 20Fs for the relevant year
123
NOC upstream reserves transparency
100 100 100 100 100
Scoring: NOC oil & gas reserves auditing performed
by independent international firm and files reports with international exchange (100); reserves auditing
performed and publicly disclosed by independent
international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm
(50); reserves auditing performed internally and
publicly disclosed (25); No publicly available reserves auditing (0).
StatoilHydro Form 20Fs for the relevant year
Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and
Value Creation, volume I, chapter 4.
The World Bank1818 H Street, N.W.Washington, D.C. 20433USA
www.worldbank.org/ogmc (or /oil or /gas or /mining)