Transcript
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March 2011

National Oil Companies and Value Creation

Volume III

Data Set

Silvana Tordowith Brandon S. Tracyand Noora Arfaa

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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

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Copyright © 2011

The International Bank for Reconstruction and Development/The World Bank

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Washington, DC 20433

Telephone: 202-473-1000

Internet: www.worldbank.org

World Bank and ESMAP papers are published to communicate the results of the Bank’s work to the development

community with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance

with the procedures appropriate to formally-edited texts. Some sources cited in this paper may be informal documents

that are not readily available. This volume is a product of the staff of the International Bank for Reconstruction and

Development/The World Bank and ESMAP. The findings, interpretations, and conclusions expressed in this volume do

not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent.

They are entirely those of the author(s) and should not be attributed in any manner to the World Bank, or its affiliated

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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

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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.

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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 %

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(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

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(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

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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

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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

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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.

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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

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(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

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(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

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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

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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

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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.

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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

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(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

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(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

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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

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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

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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.

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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

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(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

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(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.

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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

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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

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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.

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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 %

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(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

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(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.

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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

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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)

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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.

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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

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(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

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(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

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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

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(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

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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.

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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 %

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(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

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(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

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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

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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

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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.

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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

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(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

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(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

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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

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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)

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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.

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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

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(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

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(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

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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

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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

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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.

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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

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(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

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(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).

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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).

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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

%

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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.

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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

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(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

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(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

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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

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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

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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.

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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

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(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

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(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

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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

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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

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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.

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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

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(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

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(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

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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

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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

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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.

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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

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(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

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(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

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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

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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

%

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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.

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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

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(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

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(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

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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.

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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

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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.

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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

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(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

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(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,

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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

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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

%

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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.

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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

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(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

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(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

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(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

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(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

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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.

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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

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(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

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(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

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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

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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);

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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.

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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

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(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

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(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,

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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

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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

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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.

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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

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(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

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(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).

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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

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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

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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.

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The World Bank1818 H Street, N.W.Washington, D.C. 20433USA

www.worldbank.org/ogmc (or /oil or /gas or /mining)


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