National Oil Companies and Value Creation - World 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).

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March 2011National Oil Companies and Value CreationVolume III Data SetSilvana Tordowith Brandon S. Tracyand Noora ArfaaW O R L D B A N K P A P E R National Oil Companies and Value Creation Silvana Tordo with Brandon S. Tracy and Noora Arfaa Volume III Copyright 2011 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org World Bank and ESMAP papers are published to communicate the results of the Banks 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 organizations, or to members of its board of executive directors for the countries they represent, or to ESMAP. The World Bank and ESMAP do not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status or any territory or the endorsement of acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. Queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. 2 Contents 1. China National Offshore Oil Company (China) ................................................................................ 4 2. Ecopetrol S.A. (Colombia) .................................................................................................................. 10 3. Ente Nazionale Idrocarburi S.p.A. (Italy) ......................................................................................... 16 4. Open Joint Stock Company Gazprom (Russia) ................................................................................ 22 5. Gaz de France S.A. (France) ................................................................................................................ 28 6. Kazmunaigaz Exploration and Production (Kazakhstan) .............................................................. 34 7. Oil and Gas Development Corporation Ltd (Pakistan) .................................................................. 40 8. Oil and Natural Gas Corporation Ltd (India) .................................................................................. 46 9. Petrleos de Venezuela, S.A. (Venezuela) ........................................................................................ 52 10. Petrleos Mexicanos S.A. (Mexico) .................................................................................................... 58 11. The Petroleum Oil and Gas Corporation of South Africa (Pty) Limited (South Africa) ............ 64 12. Petrleos Brasileiro S.A. (Brazil) ........................................................................................................ 70 13. Petro China Company Limited (China) ............................................................................................ 76 14. Petroliam Nasional Berhad (Malaysia) ............................................................................................. 82 15. PTT Public Company Limited (Thailand) ........................................................................................ 88 16. Qatar Petroleum (Qatar) ..................................................................................................................... 94 17. Oil Company Rosneft (Russia) ......................................................................................................... 100 18. China Petroleum & Chemical Corporation (China) ...................................................................... 106 19. Sonatrach S.A. (Algeria) .................................................................................................................... 112 20. StatoilHydro ASA. (Norway) ........................................................................................................... 118 3 Acknowledgments National Oil Companies and Value Creation, Volume III, is part of a study aimed to explore the determinants of value creation by national oil companies (NOCs). The study comprises three volumes: volume I presents the findings of the study, volume II contains detailed case studies on the NOCs analyzed in the study, and volume III contains the full dataset and calculation of the value creation indices and value drivers for each NOC in the study sample. The study was undertaken and written by Silvana Tordo (lead energy economist Oil, Gas, and Mining Policy Division, World Bank), with contributions from Brandon S. Tracy (econometrician, consultant), and Noora Arfaa (consultant), both with the Oil, Gas, and Mining Policy Division of the World Bank. The study draws on earlier drafts of chapters 1, 2, and 3 prepared by Christian O. Wolf (Economist, Cambridge University, United Kingdom). The data and material utilized in the calculation of the value creation index and value drivers were collected by Michelle M. Foss, Gurcan Gulen, Miranda Wainberg, Ruzanna Makaryan, and Dmitry Volkov (Center for Energy Economics, Bureau of Economic Geology, University of Texas at Austin CEE), who also contributed to the definition of the statistical model of value creation and prepared the original version of the case studies. The comments of peer reviewers Alan H. Gelb (Center for Global Development ), Robert W. Bacon and Charles McPherson, both consultants (Oil, Gas, and Mining Policy Division, World Bank), Sunita Kikeri (Corporate Governance Department, World Bank), and Andre Plourde (professor, department of economics, University of Alberta) are gratefully acknowledged. Comments were also provided by PRMSP. Steven B. Kennedy and Fayre Makeig edited the paper. 4 1. China National Offshore Oil Company (China) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 128.00 135.00 179.00 208.00 239.00 Company oil production MM Bbls 116.00 130.00 136.00 134.00 155.00 E&P production (BOE) MM BOE 139.30 154.57 168.58 171.86 198.50 E&P production growth % 7.66 10.97 9.06 1.94 15.50 Total net additions proved oil reserves MM Bbls 130.00 107.00 126.00 209.00 172.00 Total net additions proved gas reserves BCF 465.00 324.00 295.00 199.00 -200.00 Total net additions proved gas reserves MM BOE 84.63 58.97 53.69 36.22 -36.40 Reserve additions (BOE) MM BOE 214.63 165.97 179.69 245.22 135.60 Reserves replacement rate % 1.54 1.07 1.07 1.43 0.68 Primary distillation capacity MBPD Total refining throughput MBPD Refinery utilization rate % Assets (national currency) MM 93,801.86 114,765.06 155,268.02 179,793.00 206,669.00 Assets $ MM 11,328.73 14,029.96 19,895.70 23,567.36 30,292.27 Output / total assets BOE/000$ 12.30 11.02 8.47 7.29 6.55 Employees # of people 2,524.00 2,696.00 2,929.00 3,288.00 3,584.00 Output / total employees BOE/000$ 55.19 57.33 57.55 52.27 55.38 Financial Performance unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) MM 24,408.00 39,075.00 51,741.00 54,364.00 79,381.00 Direct expenditures on social/economic development programs (national currency) MM 6.00 6.00 5.00 8.85 10.50 Total revenue (national currency) MM 55,219.00 69,456.00 90,842.00 90,724.00 125,977.00 EBRTN MM 24,414.00 39,081.00 51,746.00 54,372.85 79,391.50 EBRTN / revenues % 44.21 56.27 56.96 59.93 63.02 EBRTN / total assets % 26.03 34.05 33.33 30.24 38.41 Total capital expenditures (national currency) MM 12,843.00 16,606.00 21,175.00 26,862.00 37,321.00 Net cash flow after taxes and dividends (national currency) MM 18,299.00 27,027.00 33,442.00 33,930.64 46,360.72 NCF/CAPEX % 1.42 1.63 1.58 1.26 1.24 National Mission Performance unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 2,484.00 2,688.00 2,879.00 3,248.00 3,546.00 Total number of NOC non-local employees # of people 40.00 8.00 50.00 40.00 38.00 Share of nationals in NOC workforce % 0.98 1.00 0.98 0.99 0.89 NOC employment in native country (# people) # of people 1,524.00 1,780.00 2,029.00 2,351.00 2,684.00 NOC annual employment growth % 5.32 16.80 13.99 15.87 14.16 Country Labor Force # of people (000) 754,509.40 760,627.0 0 766,465.20 771,078.90 776,881.00 Country annual employment growth % 0.81 0.81 0.77 0.60 0.75 NOC - Country employment growth pp 4.51 15.99 13.22 15.27 13.41 NOC employment share of country workforce % 0.00 0.00 0.00 0.00 0.00 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM 19,274.00 23,912.00 29,996.00 38,679.00 52,288.00 Share of local content % NOC noncommercial expenditure (national currency) MM 6.00 6.00 5.00 8.85 10.50 NOC noncommercial expenditures $ MM Noncommercial expenditure/Total expenditure % 0.03 0.03 0.02 0.02 0.02 Net income from noncore commercial business activities $ MM Net income $ MM 1,949.00 3,096.00 3,963.00 3,704.94 6,504.25 Net income noncore commercial activities/Net income % Price subsidies provided by NOC MM Total NOC Revenues (national currency) MM 55,219.00 69,456.00 90,842.00 90,724.00 125,977.00 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE Country oil consumption MMBOE 2,471.87 2,549.20 2,694.35 2,825.90 2,919.58 Domestic output use % 5 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 7.66 10.97 9.06 1.94 15.50 Reserves replacement rate (BOE, %) 154.08 107.37 106.59 142.69 68.31 Refinery utilization rate (%) Output / total assets (BOE/'000$) 1229.58 1101.71 847.31 729.21 655.28 Output / total employees ('000 BOE) 5518.86 5733.31 5755.48 5226.76 5538.45 Financial Performance EBRTN / revenues (%) 44.21 56.27 56.96 59.93 63.02 EBRTN / total assets (%) 26.03 34.05 33.33 30.24 38.41 NCF / CAPEX (%) 142.48 162.75 157.93 126.31 124.22 National Mission Performance Share of nationals in NOC workforce (%) 98.42 99.70 98.29 98.78 88.94 NOC Country employment growth (% points) 4.51 15.99 13.22 15.27 13.41 NOC employment share of country workforce (%) 0.00 0.00 0.00 0.00 0.00 Share of local content (%) Noncommercial expenditures/total expenditures (%) 0.03 0.03 0.02 0.02 0.02 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) Domestic output use (%) (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.60 0.47 0.42 0.57 0.53 E&P production growth 0.46 0.07 0.41 0.53 0.80 Reserves replacement rate 0.68 0.53 0.15 0.83 0.41 Refinery utilization rate Output / total assets 0.24 0.26 0.24 0.22 0.19 Output / total employees 1.00 1.00 0.88 0.70 0.72 Financial Performance 0.54 0.52 0.49 0.50 0.52 EBRTN / revenues 0.50 0.60 0.59 0.63 0.68 EBRTN / total assets 0.41 0.35 0.29 0.36 0.55 NCF / CAPEX 0.73 0.60 0.61 0.50 0.34 National Mission Performance 0.41 0.41 0.45 0.35 0.32 Share of nationals in NOC workforce 0.98 1.00 0.98 0.98 0.86 NOC employment growth 0.67 0.65 0.82 0.41 0.41 NOC employment share of country workforce 0.00 0.00 0.00 0.00 0.00 Share of local content Noncommercial expenditures/total expenditures 0.01 0.00 0.00 0.00 0.00 Noncore commercial activities net income/Total net income Price Subsidies/Revenues Domestic output use VCI 0.52 0.46 0.45 0.47 0.46 6 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 15,531 15,587 15,615 15,493 14,817 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 1,448 1,535 1,684 2,255 2,455 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 24,640 25,240 26,204 29,678 30,261 CEE calculation STATE CONTEXT WGI: Voice and Accountability -1.45 -1.52 -1.68 -1.72 -1.72 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -0.14 -0.25 -0.31 -0.28 -0.32 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.05 -0.12 0.06 0.19 0.24 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.29 -0.25 -0.33 -0.24 -0.22 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.36 -0.41 -0.48 -0.45 -0.33 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.58 -0.67 -0.53 -0.61 -0.44 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues Hydrocarbon Revenues as % of GDP WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 109 161 126 76 77 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 2,780 2,904 3,379 3,670 3,857 US Energy Information Administration at http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=CH (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion -35 -51 -72 -91 -130 Exports valued at China Daiqing oil price and imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 1,930 2,240 2,660 3,380 4,333 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP -1.82 -2.26 -2.72 -2.68 -3.01 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product -2.35 -2.12 -1.62 -1.44 World Bank Development Indicators: http://data.worldbank.org/indicator Stabilization Mechanisms such as petroleum funds (yes-1/no-0) PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE Publicly disclosed national policy addressing hydrocarbon sector issues (yes-1/no-0) 0 0 0 0 0 CEE assessment Institutional structure 66 66 66 66 66 Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one entity (0). Country oil production MM Barrels 1,271 1,324 1,345 1,366 1,385 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country gas production BCF 1,460 1,742 2,068 2,445 2,679 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreviewhttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.wto.org/http://www.opec.org/http://www.opec.org/http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=CHhttp://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=CHhttp://data.worldbank.org/indicatorhttp://data.worldbank.org/indicatorhttp://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreview7 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 http://www.bp.com/statisticalreview8 Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. CNOOC has no refining operations NOC upstream capital expenditures as percentage of total capital expenditures (%) 100 100 100 100 100 CNOOC Form 20Fs for relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) CNOOC has no refining operations NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. Not applicable NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 10.0 10.0 10.0 14.0 28.0 CNOOC Form 20Fs for relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). CNOOC Form 20Fs for relevant year and website material. NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 34.0 34.0 34.0 36.0 36.0 CNOOC Forms 20Fs for relevant year Percentage of independent BOD members (%) 42.0 42.0 42.0 45.0 45.0 CNOOC Forms 20Fs for relevant year Appointment authority for NOC chairman and chief executive officer 50 50 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity CNOOC Forms 20Fs for relevant year Independence of NOC capital and budget processes 75 75 75 75 75 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). CNOOC Forms 20Fs for relevant year NOC net cash flow after taxes and dividends (local currency MM) 18,299 27,027 33,442 33,931 46,361 CNOOC Forms 20Fs for relevant year NOC capital expenditures (local currency MM) 18,622 17,472 45,150 26,862 37,321 CNOOC Forms 20Fs for relevant year NOC financial sustainability (%) 98.3 154.7 74.1 126.3 124.2 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation 9 NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) CNOOC Forms 20Fs for relevant year NOC upstream reserves transparency 100 100 100 100 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50) ; reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). CNOOC Forms 20Fs for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 10 2. Ecopetrol S.A. (Colombia) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 123.00 130.00 113.60 118.80 136.00 Company oil production MM Bbls 111.69 113.52 95.70 99.20 111.00 E&P production (BOE) MM BOE 132.90 135.93 115.29 119.68 134.45 E&P production growth % -8.50 2.28 -15.19 3.81 12.34 Total net additions proved oil reserves MM Bbls 127.00 117.00 86.00 35.70 52.50 Total net additions proved gas reserves BCF 31.00 157.50 238.10 55.30 Total net additions proved gas reserves MM BOE 0.00 5.64 28.67 43.33 10.06 Reserve additions (BOE) MM BOE 127.00 122.64 114.67 79.03 62.56 Reserves replacement rate % 95.56 90.23 99.46 66.04 46.53 Primary distillation capacity MBPD 335.00 335.00 335.00 335.00 335.00 Total refining throughput MBPD 305.60 296.30 314.93 313.26 312.57 Refinery utilization rate % 91.22 88.45 94.01 93.51 93.30 Assets $ MM 11,702.00 14,300.00 18,821.00 29,699.50 40,303.40 Output / total assets BOE/000$ 20.88 17.07 12.23 7.88 6.17 Employees # of people 6,027.00 5,856.00 5,965.00 6,074.00 6,517.00 Output / total employees BOE/000$ 40.56 41.68 38.60 38.53 38.14 Financial Performance unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 6,333.86 7,430.10 7,517.90 10,991.49 18,011.35 Direct expenditures on social/economic development programs (national currency) Bn 30.51 34.51 40.46 73.15 125.80 Total revenue (national currency) Bn 13,050.61 15,512.90 18,389.96 22,332.32 33,896.67 EBRTN Bn 6,364.38 7,464.61 7,558.36 11,064.64 18,137.15 EBRTN / revenues % 48.77 48.12 41.10 49.55 53.51 EBRTN / total assets % 22.76 22.87 16.57 23.00 37.24 Total capital expenditures (national currency) Bn 1,651.75 1,749.69 1,862.93 3,036.96 6,704.60 net cash flow after taxes and dividends Bn 1,364.30 1,232.39 4,353.69 5,809.09 7,604.00 NCF/CAPEX % 82.60 70.43 233.70 191.28 113.41 National Mission Performance unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 6,027.00 5,856.00 5,965.00 6,074.00 6,515.00 Total number of NOC non-local employees # of people 0.0 0.0 0.0 0.0 2.0 Share of nationals in NOC workforce % 100.00 100.00 100.00 100.00 100.00 NOC employment in native country (# people) # of people 6,027.00 5,856.00 5,965.00 6,074.00 6,515.00 NOC annual employment growth % -4.30 -2.84 1.86 1.83 7.26 Country Labor Force # of people (000) 16,889.04 17,312.09 17,710.82 18,082.42 18,550.11 Country annual employment growth % 2.53 3 2.30 2.10 2.59 NOC - Country employment growth % points -6.83 -5.34 -0.44 -0.27 4.67 NOC employment share of country workforce % 0.04 0.03 0.03 0.03 0.04 NOC local purchases goods and services (national currency) MM NOC total purchases goods and services $ Bn 9,100.46 13,236.02 13,872.19 14,648.03 24,38.93 Share of local content % 58.00 91.00 88.00 79.00 NOC noncommercial expenditure (national currency) MM 30,510.30 34,509.20 40,461.00 73,148.00 125,800.00 NOC noncommercial expenditure $ MM Noncommercial expenditure/Total expenditure % 0.34 0.26 0.29 0.50 0.52 Net income from non-core commercial business activities $ MM Net income $ MM 788.58 1,395.44 1,399.00 2,570.92 5,183.51 Net income noncore commercial activities/Net income % Price subsidies provided by NOC (national currency) Bn 3,853.44 4,871.55 3,350.00 Total NOC Revenues (national currency) Bn 13,050.61 15,512.90 18,389.96 22,332.32 33,896.67 Price Subsidies/Revenues % 29.50 31.40 18.20 NOC domestic petroleum products production MMBOE 91.58 88.79 95.61 93.43 87.69 Country oil consumption MMBOE 81.41 83.81 87.63 85.56 85.55 Domestic output use % 112.49 106.94 109.11 109.19 102.50 11 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) -8.50 2.28 -15.19 3.81 12.34 Reserves replacement rate (BOE, %) 95.56 90.23 99.46 66.04 46.53 Refinery utilization rate (%) 91.22 88.45 94.01 93.51 93.30 Output / total assets (BOE/'000$) 20.89 17.07 12.23 7.88 6.17 Output / total employees ('000 BOE) 40.56 41.68 38.60 38.53 38.14 Financial Performance EBRTN / revenues (%) 48.77 48.12 41.10 49.55 53.51 EBRTN / total assets (%) 22.76 22.87 16.57 23.00 37.24 NCF / CAPEX (%) 82.60 70.43 233.70 191.28 113.41 National Mission Performance Share of nationals in NOC workforce (%) 100.00 100.00 100.00 100.00 99.97 NOC Country employment growth (% points) -6.83 -5.34 -0.44 -0.27 4.67 NOC employment share of country workforce (%) 0.04 0.03 0.03 0.03 0.04 Share of local content (%) 58.00 91.00 88.00 79.00 Noncommercial expenditures/total expenditures (%) 0.34 0.26 0.29 0.50 0.52 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) 29.53 31.40 18.22 Domestic output use (%) 112.49 105.94 109.11 109.19 102.50 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.44 0.42 0.29 0.47 0.40 E&P production growth 0.00 0.05 0.02 0.57 0.71 Reserves replacement rate 0.51 0.47 0.14 0.62 0.21 Refinery utilization rate 0.54 0.44 0.38 0.39 0.40 Output / total assets 0.43 0.42 0.35 0.24 0.18 Output / total employees 0.73 0.72 0.58 0.51 0.49 Financial Performance 0.45 0.27 0.46 0.50 0.47 EBRTN / revenues 0.56 0.50 0.39 0.50 0.57 EBRTN / total assets 0.35 0.19 0.00 0.23 0.53 NCF / CAPEX 0.42 0.12 1.00 0.78 0.30 National Mission Performance 0.49 0.47 0.58 0.46 0.49 Share of nationals in NOC workforce 1.00 1.00 1.00 1.00 1.00 NOC employment growth 0.29 0.24 0.55 0.20 0.27 NOC employment share of country workforce 0.02 0.02 0.02 0.03 0.03 Share of local content 0.53 1.00 1.00 0.84 Noncommercial expenditures/total expenditures 0.12 0.02 0.01 0.02 0.03 Noncore commercial activities net income/Total net income Price Subsidies/Revenues 1.00 1.00 0.91 Domestic output use 0.49 0.50 0.56 0.53 0.77 VCI 0.46 0.39 0.44 0.48 0.45 12 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 1,478 1,453 1,509 1,510 1,362 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 119 113 123 125 112 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 2,226 2,164 2,283 2,296 2,066 CEE calculation STATE CONTEXT WGI: Voice and Accountability -0.30 -0.24 -0.14 -0.25 -0.26 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -1.92 -1.75 -1.61 -1.57 -1.66 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.08 -0.11 -0.01 0.03 0.13 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.06 0.04 0.12 0.21 0.24 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.82 -0.72 -0.58 -0.55 -0.50 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.19 -0.17 -0.16 -0.24 -0.25 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 5.0 7.0 10.0 10.0 10.0 "Comparative Study on the Distribution of Oil Rents in Bolivia, Colombia, Ecuador and Peru," Joint UNDP/World Bank ESMAP, January 2005; "Colombia's Energy Industry," Embassy of Colombia, Washington DC available at http://www.iccair.com/linkandddb/html/data%20Base/Colombia/5495_COLOMBIAS_ENERGY_INDUSTRY.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_INDUSTRY.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 http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreviewhttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://data.worldbank.org/indicator13 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 http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreview14 NOC objectives 25 25 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). Ecopetrol Form 20Fs for relevant year and website material. NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 1 1 1 1 1 % operated not disclosed in Form 20Fs but company appears to be a substantial operating entity Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100 100 100 88 88 CNOOC has no refining operations NOC upstream capital expenditures as percentage of total capital expenditures (%) 76.0 75.0 70.3 88.2 73.3 Ecopetrol Form 20Fs for relevant year and website material. NOC refining capital expenditures as percentage of total capital expenditures (%) 17.0 18.0 23.4 7.7 11.6 Ecopetrol Form 20Fs for relevant year and website material. NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 100.4 100.4 100.4 104.3 115.3 Ecopetrol Form 20Fs for relevant year and website material. NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 0 0 0 1 1 Ecopetrol Form 20Fs for relevant year and website material. Joint ventures between the NOC and third parties 66 66 66 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Ecopetrol Form 20Fs for relevant year and website material. NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0 0 0 10 10 Ecopetrol Form 20Fs for relevant year and website material. Percentage of independent BOD members (%) 33.0 33.0 33.0 66.0 66.0 Ecopetrol Form 20Fs for relevant year and website material. Appointment authority for NOC chairman and chief executive officer 50 50 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity Ecopetrol Form 20Fs for relevant year and website material. Independence of NOC capital and budget processes 0 0 0 75 75 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC 15 budget is part of the national budget (0). Ecopetrol Form 20Fs for relevant year and website material. NOC net cash flow after taxes and dividends (local currency Bn) 1,364 1,232 4,354 5,809 7,604 Ecopetrol Forms 20Fs for relevant year NOC capital expenditures (local currency Bn) 1,652 1,750 1,863 3,037 6,705 Ecopetrol Forms 20Fs for relevant year NOC financial sustainability (%) 82.6 70.4 233.7 191.3 113.4 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 50 50 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Ecopetrol Forms 20Fs for relevant year NOC upstream reserves transparency 0 0 0 0 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50) ; reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Ecopetrol Forms 20Fs for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 16 3. Ente Nazionale Idrocarburi S.p.A. (Italy) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 1,236.26 1,312.18 1,447.59 1,501.61 1,614.76 Company oil production MM Bbls 377.41 405.52 393.84 372.30 374.49 E&P production (BOE) MM BOE 602.41 644.33 657.30 645.59 668.38 E&P production growth % 5.66 6.96 2.01 -1.78 3.53 Total net additions proved oil reserves MM Bbls 284.00 89.00 273.00 -25.00 480.00 Total net additions proved gas reserves BCF 1,926.00 65.00 829.00 737.00 2,163.00 Total net additions proved gas reserves MM BOE 350.53 11.83 150.88 134.13 393.67 Reserve additions (BOE) MM BOE 634.53 100.83 423.88 109.13 873.67 Reserves replacement rate % 105.33 15.65 64.49 16.90 130.71 Primary distillation capacity MBPD 681.0 701.0 711.0 748.0 737.0 Total refining throughput MBPD 681.0 701.0 711.0 755.5 700.2 Refinery utilization rate % 100.00 100.00 100.00 101.00 95.00 Assets in USD MM 90,621.85 104,317.79 110,884.55 139,187.98 171,480.57 Output / total assets BOE/000$ 9.39 8.63 8.27 6.62 5.39 Employees # of people 70,348.00 72,258.00 73,572.00 75,862.00 78,880.00 Output / total employees BOE/000$ 12.10 12.46 12.46 12.14 11.71 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) MM 13,163.00 17,817.00 20,160.00 19,648.00 19,519.00 Direct expenditures on social/economic development programs (national currency) MM 31.61 62.01 74.70 85.90 84.20 Total revenue (national currency) MM 57,545.00 73,728.00 86,105.00 87,256.00 108,148.00 EBRTN MM 13,194.61 17,879.01 20,234.70 19,733.90 19,603.20 EBRTN / revenues % 22.93 24.25 23.50 22.62 18.13 EBRTN / total assets % 18.11 21.32 22.91 19.43 16.81 Total capital expenditures (national currency) MM 7,499.00 7,560.00 7,928.00 20,502.00 18,867.00 Net cash flow after taxes and dividends MM 12,500.00 13,710.20 15,622.80 14,092.00 20,387.10 NCF/CAPEX % 166.69 181.35 197.06 68.73 108.06 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 40,761.00 40,192.00 39,765.00 39,427.00 39,480.0 Total number of NOC non-local employees # of people 29,587.00 32,066.00 33,807.00 36,435.00 39,400.0 Share of nationals in NOC workforce % 57.94 55.62 54.05 51.97 50.05 NOC employment in native country (# people) # of people 40,761.00 40,192.00 39,765.00 39,427.00 39,480.00 NOC annual employment growth % -3.49 -1.40 -1.06 -0.85 0.13 Country Labor Force # of people (000) 24,658.62 24,591.63 24,783.52 24,814.16 25,211.84 Country annual employment growth % 2.45 -0.27 0.78 0.12 1.60 NOC - Country employment growth % points -5.94 -1.12 -1.84 -0.97 -1.47 NOC employment share of country workforce % 0.17 0.16 0.16 0.16 0.16 NOC local purchases goods and services $ MM 17,166.88 16,312.64 NOC total purchases goods and services $ MM 57,027.84 69,827.60 82,138.84 107,832.31 140,130.47 Share of local content % 15.92 11.64 NOC noncommercial expenditure (national currency) MM 31.61 62.01 74.70 85.90 84.20 NOC noncommercial expenditure $ MM 39.32 77.15 93.79 117.73 123.84 Noncommercial expenditure/Total expenditure % 0.07 0.11 0.11 0.11 0.09 Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 8,780.69 10,933.15 11,572.87 13,720.08 12,979.81 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM Total NOC Revenues $ MM 71,580.2 91,725.0 108,113.4 119,584.3 159,064.1 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE 237.83 242.63 239.25 231.15 215.85 Country oil consumption MMBOE 683.78 663.95 661.60 642.20 617.34 Domestic output use % 34.78 36.54 36.16 35.99 34.96 17 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 5.66 6.96 2.01 -1.78 3.53 Reserves replacement rate (BOE, %) 105.33 15.65 64.49 16.90 130.71 Refinery utilization rate (%) 100.00 100.00 100.00 101.00 95.00 Output / total assets (BOE/'000$) 9.39 8.63 8.27 6.62 5.39 Output / total employees ('000 BOE) 12.10 12.46 12.46 12.14 11.71 Financial Performance EBRTN / revenues (%) 22.93 24.25 23.50 22.62 18.13 EBRTN / total assets (%) 18.11 21.32 22.91 19.43 16.81 NCF / CAPEX (%) 166.69 181.35 197.06 68.73 108.06 National Mission Performance Share of nationals in NOC workforce (%) 57.94 55.62 54.05 51.97 50.05 NOC Country employment growth (% points) -5.94 -1.12 -1.84 -0.97 -1.47 NOC employment share of country workforce (%) 0.17 0.16 0.16 0.16 0.16 Share of local content (%) 15.92 11.64 Noncommercial expenditures/total expenditures (%) 0.07 0.11 0.11 0.11 0.09 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) Domestic output use (%) 34.78 36.54 36.16 35.99 34.96 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.40 0.26 0.25 0.36 0.43 E&P production growth 0.41 0.06 0.30 0.44 0.44 Reserves replacement rate 0.54 0.22 0.05 0.48 1.00 Refinery utilization rate 0.67 0.61 0.48 0.52 0.42 Output / total assets 0.18 0.20 0.23 0.20 0.15 Output / total employees 0.20 0.21 0.18 0.15 0.15 Financial Performance 0.44 0.35 0.36 0.19 0.21 EBRTN / revenues 0.21 0.18 0.16 0.16 0.15 EBRTN / total assets 0.27 0.17 0.11 0.17 0.19 NCF / CAPEX 0.85 0.70 0.81 0.25 0.29 National Mission Performance 0.21 0.20 0.25 0.15 0.16 Share of nationals in NOC workforce 0.49 0.47 0.42 0.41 0.38 NOC - Country employment growth 0.32 0.32 0.52 0.19 0.18 NOC employment share of country workforce 0.08 0.09 0.11 0.13 0.13 Share of local content 0.00 0.00 Noncommercial expenditures/total expenditures 0.02 0.01 0.00 0.00 0.00 Noncore commercial activities net income/Total net income Price Subsidies/Revenues Domestic output use 0.14 0.15 0.18 0.16 0.24 VCI 0.35 0.27 0.29 0.23 0.27 18 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 801 803 825 878 978 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 114 107 86 77 64 BP Statistical Review of World Energy June 200 9 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 1520 1475 1368 1361 1381 CEE calculation STATE CONTEXT WGI: Voice and Accountability 1.15 1.00 1.00 1.09 0.96 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability 0.33 0.34 0.42 0.39 0.41 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 0.79 0.66 0.47 0.32 0.39 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 1.05 0.89 0.85 0.81 0.95 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law 0.66 0.50 0.34 0.41 0.43 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control 0.49 0.25 0.33 0.32 0.13 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues Hydrocarbon Revenues as % of GDP WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 1747 1805 1753 1776 1651 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion -23 -33 -39 -45 -57 Italy's imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 1730 1780 1860 2110 2300 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP -1.33 -1.87 -2.10 -2.12 -2.47 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product -3.09 -2.57 -3.52 -2.24 -1.75 http://www.tradingeconomics.com/Economics/Government-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 http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreviewhttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.wto.org/http://www.opec.org/http://www.opec.org/http://www.opec.org/http://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=ITLhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=ITLhttp://www.swfinstitute.org/http://www.eni.com/http://www.eni.com/http://www.bp.com/statisticalreview19 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 http://www.bp.com/statisticalreview20 no data yes-1/no-0. Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100.0 100.0 100.0 100.0 100.0 ENI Form 20Fs for relevant year and website material. NOC upstream capital expenditures as percentage of total capital expenditures (%) 66.0 67.0 66.4 62.5 65.5 ENI Form 20Fs for relevant year and website material. NOC refining capital expenditures as percentage of total capital expenditures (%) 8.0 8.8 8.2 9.2 6.6 ENI Form 20Fs for relevant year and website material. NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 96.0 97.0 97.0 85.0 83.0% ENI Form 20Fs for relevant year and website material. NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 55.0 55.4 57.8 57.2 60.3 ENI Form 20Fs for relevant year and website material. Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). ENI Form 20Fs for relevant year and website material. NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 69.7 69.7 69.7 69.7 69.7 ENI Form 20Fs for relevant year and website material. Percentage of independent BOD members (%) 33.3 33.3 33.3 33.3 33.3 ENI Form 20Fs for relevant year and website material. Appointment authority for NOC chairman and chief executive officer 100 100 100 100 100 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity ENI Form 20Fs for relevant year and website material. Independence of NOC capital and budget processes 75 75 75 75 75 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). ENI Form 20Fs for relevant year and website material. NOC net cash flow after taxes and dividends (local currency MM) 12,500 13,710 15,623 14,092 20,387 ENI Forms 20Fs for relevant year NOC capital expenditures (local currency MM) 7,499 7,560 7,928 20,502 18,867 ENI Forms 20Fs for relevant year NOC financial sustainability (%) 166.7 181.4 197.1 68.7 108.1 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation 21 NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) ENI Forms 20Fs for relevant year NOC upstream reserves transparency 100 100 100 100 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50) ; reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). ENI Forms 20Fs for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 22 4. Open Joint Stock Company Gazprom (Russia) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 19,499.21 19,586.70 19,622.10 19,360.09 19,398.91 Company oil production MM Bbls 89.88 157.40 340.42 339.43 322.26 E&P production (BOE) MM BOE 3,565.37 3,648.48 3,837.81 3,790.12 3,779.87 E&P production growth % 6.74 2.33 5.19 -1.24 -0.27 Total net additions proved oil reserves MM Bbls Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE Reserve additions (BOE) MM BOE 1,690.00 5,785.00 17,715.00 4,869.00 3,967.00 Reserves replacement rate % 47.40 158.56 461.59 128.47 104.95 Primary distillation capacity MBPD 1,434.24 1,865.70 2,114.38 2,114.38 2,114.38 Total refining throughput MBPD 896.96 1,124.00 1,540.00 1,520.00 1,466.00 Refinery utilization rate % 96.00 60.25 72.83 71.89 69.33 Assets $ MM 111,234.87 153,379.07 195,217.83 265,334.22 288,125.72 Output / total assets BOE/000$ 35.00 26.46 22.54 16.38 14.98 Employees # of people 332,800.00 397,000.00 432,000.00 436,100.00 376,300.00 Output / total employees BOE/000$ 11.70 10.22 10.18 9.96 11.47 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 334.89 567.95 975.43 931.55 1,519.28 Direct expenditures on social/economic development programs (national currency) Bn 13.34 15.67 18.56 18.27 22.64 Total revenue (national currency) Bn 976.78 1,383.55 2,152.11 2,423.25 3,518.96 EBRTN Bn 348.23 583.62 994.00 949.82 1,541.91 EBRTN / revenues % 35.65 42.18 46.19 39.20 43.82 EBRTN / total assets % 10.86 13.45 18.72 13.98 21.51 Total capital expenditures (national currency) Bn 241.44 352.62 485.64 576.89 801.33 net cash flow after taxes and dividends Bn 167.48 248.76 509.86 538.74 953.94 NCF/CAPEX % 69.37 70.55 104.99 93.39 119.04 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 99.90 99.90 99.90 99.90 99.90 NOC employment in native country # of people 329,472.00 393,030.00 427,680.00 431,739.00 372,537.00 NOC annual employment growth % 19.29 8.82 0.95 -13.71 Country Labor Force # of people (000) 73,887.91 74,389.25 75,135.02 76,116.87 76,025.81 Country annual employment growth % 0.16 0.68 1.00 1.31 -0.12 NOC - Country employment growth % points -0.16 18.61 7.81 -0.36 -13.59 NOC employment share of country workforce % 0.45 0.53 0.57 0.57 0.49 NOC local purchases goods and services $ Bn NOC total purchases goods and services $ Bn 955.60 1,282.18 1,849.56 2,298.35 3,059.99 Share of local content % NOC noncommercial expenditure (national currency) MM 13,335.00 15,672.00 18,563.00 18,272.00 22,636.00 NOC noncommercial expenditure $ MM Noncommercial expenditure/Total expenditure % 1.40 1.22 1.00 0.80 0.74 Net income from non-core commercial business activities $ MM 336.22 756.45 1,139.71 1,484.38 1,475.08 Net income from total commercial activities $ MM 33,892.30 48,905.80 79,121.73 94,658.01 141,437.30 Net income noncore commercial activities/Net income % 0.99 1.55 1.44 1.57 1.04 Price subsidies provided by NOC $ MM Total NOC Revenues $ MM 33,892.30 48,905.80 79,121.73 94,658.01 141,437.30 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE 87.96 109.22 159.00 174.00 183.75 Country oil consumption MMBOE 955.78 949.52 988.79 987.67 1,020.77 Domestic output use % 9.20 11.50 16.08 17.62 18.00 23 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 6.74 2.33 5.19 -1.24 -0.27 Reserves replacement rate (BOE, %) 47.40 158.56 461.59 128.47 104.95 Refinery utilization rate (%) 96.00 60.25 72.83 71.89 69.33 Output / total assets (BOE/'000$) 35.00 26.46 22.54 16.38 14.98 Output / total employees ('000 BOE) 11.70 10.22 10.18 9.96 11.47 Financial Performance EBRTN / revenues (%) 35.65 42.18 46.19 39.20 43.82 EBRTN / total assets (%) 10.86 13.45 18.72 13.98 21.51 NCF / CAPEX (%) 69.37 70.55 104.99 93.39 119.04 National Mission Performance Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00 NOC Country employment growth (% points) -0.16 18.61 7.81 -0.36 -13.59 NOC employment share of country workforce (%) 0.45 0.53 0.57 0.57 0.49 Share of local content (%) Noncommercial expenditures/total expenditures (%) 1.40 1.22 1.00 0.80 0.74 Noncore commercial activities net income/Total net income (%) 0.99 1.55 1.44 1.57 1.04 Price Subsidies/Revenues (%) Domestic output use (%) 9.20 11.50 16.08 17.62 18.00 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.47 0.32 0.43 0.38 0.33 E&P production growth 0.44 0.05 0.35 0.45 0.32 Reserves replacement rate 0.36 0.70 0.97 0.79 0.76 Refinery utilization rate 0.61 0.00 0.00 0.02 0.00 Output / total assets 0.73 0.66 0.67 0.50 0.44 Output / total employees 0.19 0.17 0.14 0.12 0.15 Financial Performance 0.30 0.20 0.27 0.26 0.35 EBRTN / revenues 0.38 0.42 0.45 0.37 0.45 EBRTN / total assets 0.15 0.06 0.04 0.07 0.27 NCF / CAPEX 0.36 0.13 0.33 0.36 0.32 National Mission Performance 0.41 0.48 0.48 0.40 0.26 Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99 NOC employment growth 0.51 0.70 0.72 0.20 0.00 NOC employment share of country workforce 0.20 0.28 0.40 0.46 0.42 Share of local content Noncommercial expenditures/total expenditures 0.48 0.09 0.04 0.03 0.04 Noncore commercial activities net income/Total net income 0.23 0.82 0.70 0.67 0.44 Price Subsidies/Revenues Domestic output use 0.02 0.02 0.07 0.06 0.11 VCI 0.39 0.33 0.39 0.35 0.32 24 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 75,791 76,561 73,482 74,067 74,277 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 43,258 43,276 43,271 43,315 43,302 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 347,884 348,768 345,564 346,520 346,645 CEE calculation STATE CONTEXT WGI: Voice and Accountability -0.58 -0.65 -0.92 -0.98 -0.97 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -1.00 -0.94 -0.77 -0.72 -0.62 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.28 -0.36 -0.45 -0.41 -0.32 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.24 -0.33 -0.57 -0.44 -0.56 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.82 -0.87 -0.95 -0.95 -0.91 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.75 -0.74 -0.77 -0.91 -0.98 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 17.0 25.0 33.0 44.0 50.0 "Oil and Gas in the Russian Federation," by G. Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems, March, 2010; "Natural Resource Endowments, Governance, and the Domestic Revenue Effort," F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper wp/08/170, July 2008. Hydrocarbon Revenues as % of GDP 7.0 13.0 18.0 21.0 25.0 "Oil and Gas in the Russian Federation," by G. Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems, March, 2010; "Natural Resource Endowments, Governance, and the Domestic Revenue Effort," F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper wp/08/170, July 2008. WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 4,822 5,335 5,524 5,864 5,646 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 40 40 44 62 48 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 60 98 123 147 194 Exports valued at Russia Urals oil price and imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 592 765 991 1,290 1,680 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 10.2 12.8 12.4 11.4 11.5 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 9.9 8.0 6.0 http://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=RUB Stabilization Mechanisms such as petroleum funds (yes-1/no-0) 1 1 1 1 1 Oil and Gas in the Russian Federation, by G. Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems, March, 2010. PETROLEUM SECTOR ORGANIZATION AND GOVERNANCE Publicly disclosed national policy addressing hydrocarbon sector issues (yes-1/no-0) 0 0 0 0 0 Oil and Gas in the Russian Federation, by G. Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems, March, 2010. http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreviewhttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.wto.org/http://www.opec.org/http://www.opec.org/http://www.opec.org/http://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=RUBhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=RUB25 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_07_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 http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreview26 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 http://www.gazprom.com/27 multiple central government entities (25); NOC budget is part of the national budget (0). Gazprom reports for relevant year and website material. NOC net cash flow after taxes and dividends (local currency MM) 167,478 248,759 509,855 538,743 953,937 Gazprom reports for relevant year and website material. NOC capital expenditures (local currency MM) 241,437 352,620 485,640 576,885 801,331 Gazprom reports for relevant year and website material. NOC financial sustainability (%) 69.4 70.5 105.0 93.0 119.0 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Gazprom reports for relevant year and website material. NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50) ; reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Gazprom reports for relevant year and website material. Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 28 5. Gaz de France S.A. (France) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 270.00 232.84 175.28 172.80 211.52 Company oil production MM Bbls 13.20 11.60 13.50 E&P production (BOE) MM BOE 48.12 41.50 44.44 42.40 51.20 E&P production growth % 17.14 -13.76 7.09 -4.59 20.75 Total net additions proved oil reserves MM Bbls 12.30 9.40 45.40 Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE 16.50 8.80 15.80 Reserve additions (BOE) MM BOE 73.94 98.71 28.80 18.20 61.20 Reserves replacement rate % 153.64 237.86 64.80 42.92 119.53 Primary distillation capacity MBPD Total refining throughput MBPD Refinery utilization rate % Assets in USD MM 39,689.12 49,684.38 53,876.54 108,443.83 245,929.53 Output / total assets BOE/000$ 1.21 0.84 0.82 0.39 0.21 Employees # of people 38,088.00 52,958.00 50,244.00 47,560.00 199,964.00 Output / total employees BOE/000$ 1.26 0.78 0.88 0.89 0.26 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) MM 2,328.00 2,916.00 3,719.00 8,182.00 9,001.00 Direct expenditures on social/economic development programs (national currency) MM 2.00 5.90 7.10 5.00 37.00 Total revenue (national currency) MM 18,206.00 22,872.00 27,642.00 27,427.00 67,923.80 EBRTN MM 2,918.00 3,724.90 8,189.10 8,187.00 9,038.00 EBRTN / revenues % 16.03 16.29 29.63 29.85 13.31 EBRTN / total assets % 9.15 9.33 19.08 10.35 5.41 Total capital expenditures (national currency) MM 1,847.00 2,463.00 3,456.00 4,638.00 9,848.00 net cash flow after taxes and dividends MM 2,933.00 2,830.00 4,164.00 4,806.00 2,396.00 NCF/CAPEX % 158.80 114.90 120.49 103.62 24.33 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 25,138.08 33,929.00 34,293.00 31,917.00 101,552.00 Total number of NOC non-local employees # of people 12,949.92 19,029.00 15,951.00 15,643.00 98,412.00 Share of nationals in NOC workforce % 66.00 64.07 68.25 67.11 50.79 NOC employment in native country # of people 25,138.08 33,929.00 34,293.00 31,917.00 101,552.00 NOC annual employment growth % 0.55 34.97 1.07 -6.93 218.18 Country Labor Force # of people (000.000) 27,630.48 27,856.78 28,084.86 28,405.93 28,611.25 Country annual employment growth % 0.87 0.82 0.82 1.14 0.72 NOC - Country employment growth % points -0.32 34.15 0.25 -8.07 NOC employment share of country workforce % 0.09 0.12 0.12 0.11 0.35 NOC local purchases goods and services $ MM 2,609.00 17,306.49 14,944.85 NOC total purchases goods and services $ MM 3,193.09 3,894.03 25,081.87 26,219.04 52,770.83 Share of local content % 67.00 69.00 57.00 NOC noncommercial expenditure (national currency) MM 2.00 5.90 7.10 5.00 37.00 NOC noncommercial expenditure $ MM 2.49 7.34 8.91 6.85 54.42 Noncommercial expenditure/Total expenditure % 0.08 0.19 0.04 0.03 0.10 Net income from non-core commercial business activities % 35.00 87.00 122.00 423.00 725.00 Net income from total commercial activities $ MM 18,206.00 22,872.00 27,642.00 27,427.00 67,923.80 Net income noncore commercial activities/Net income % 0.19 0.38 0.44 1.54 1.07 Price subsidies provided by NOC $ MM Total NOC Revenues $ MM 22,646.44 28,455.06 34,707.30 37,588.70 99,902.33 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE Country oil consumption MMBOE 721.87 715.48 713.89 701.05 704.29 Domestic output use % 29 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 17.14 -13.76 7.09 -4.59 20.75 Reserves replacement rate (BOE, %) 153.64 237.86 64.80 42.92 119.53 Refinery utilization rate (%) Output / total assets (BOE/'000$) 1.21 0.84 0.82 0.39 0.21 Output / total employees ('000 BOE) 1.26 0.78 0.88 0.89 0.26 Financial Performance EBRTN / revenues (%) 16.03 16.29 29.63 29.85 13.31 EBRTN / total assets (%) 9.15 9.33 19.08 10.35 5.41 NCF / CAPEX (%) 158.80 114.90 120.49 103.62 24.33 National Mission Performance Share of nationals in NOC workforce (%) 66.00 64.07 68.25 67.11 50.79 NOC Country employment growth (% points) -0.32 34.15 0.25 -8.07 NOC employment share of country workforce (%) 0.09 0.12 0.12 0.11 0.35 Share of local content (%) 67.00 69.00 57.00 Noncommercial expenditures/total expenditures (%) 0.08 0.19 0.04 0.03 0.10 Noncore commercial activities net income/Total net income (%) 0.19 0.38 0.44 1.54 1.07 Price Subsidies/Revenues (%) Domestic output use (%) (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.35 0.24 0.11 0.23 0.46 E&P production growth 0.73 0.00 0.38 0.37 0.96 Reserves replacement rate 0.68 0.96 0.06 0.55 0.89 Refinery utilization rate Output / total assets 0.00 0.00 0.00 0.00 0.00 Output / total employees 0.00 0.00 0.00 0.00 0.00 Financial Performance 0.35 0.14 0.23 0.22 0.03 EBRTN / revenues 0.11 0.08 0.24 0.25 0.09 EBRTN / total assets 0.12 0.00 0.04 0.00 0.00 NCF / CAPEX 0.81 0.35 0.41 0.40 0.00 National Mission Performance 0.24 0.43 0.34 0.33 0.29 Share of nationals in NOC workforce 0.59 0.57 0.60 0.59 0.39 NOC employment growth 0.51 1.00 0.57 0.10 NOC employment share of country workforce 0.04 0.06 0.09 0.09 0.30 Share of local content 0.71 0.57 0.57 Noncommercial expenditures/total expenditures 0.03 0.01 0.00 0.00 0.00 Noncore commercial activities net income/Total net income 0.04 0.20 0.21 0.65 0.45 Price Subsidies/Revenues Domestic output use VCI 0.31 0.27 0.23 0.26 0.26 30 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 148 146 158 122 120 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 140 130 110 100 70 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 1,029 964 850 751 560 CEE calculation STATE CONTEXT WGI: Voice and Accountability 1.43 1.47 1.34 1.25 1.24 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability 0.55 0.47 0.51 0.54 0.58 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 1.67 1.57 1.47 1.36 1.54 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 1.17 1.1 1.12 1.15 1.25 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law 1.43 1.37 1.38 1.35 1.4 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control 1.42 1.39 1.46 1.31 1.43 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues Hydrocarbon Revenues as % of GDP WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 1,737 1,722 1,670 1,646 1,682 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion -23 -32 -37 -42 -58 Imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 2,060 2,150 2,270 2,590 2,860 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP -1.11 -1.48 -1.64 -1.60 -2.03 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product -4.15 -3.49 -2.77 -2.24 -2.30 http://www.tradingeconomics.com/Economics/Government-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 Rgulation de lnergie, 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. http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreviewhttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.wto.org/http://www.opec.org/http://www.opec.org/http://www.opec.org/http://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=FRFhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=FRFhttp://www.swfinstitute.org/http://www.cre.fr/en/content/view/full/60http://tonto.eia.doe.gov/31 Http://tonto.eia.doe.gov Country MMBOE production 36 34 34 33 32 CEE calculation NOC MMBOE Domestic Production Less than 5% of GDF's oil and gas production volumes are of French origin. French production volumes are not reported separately. See GDF Suez annual reports for the relevant years available at www.gdfsuez.com/en/finance/investors/publications Non-NOC percentage of oil and gas production (%) CEE calculation Country Refinery Capacity - 000 BPD 1,982 1,978 1,959 1,962 1,962 US Energy Information Administration, International Energy Statistics. Http://tonto.eia.doe.gov Net NOC Refinery Capacity - 000 BPD (country level) GDF Suez has no refining operations in France Non-NOC percentage of refinery capacity (%, country level) CEE calculation. Total Revenues (local currency MM) 17,526 22,394 44,289 47,475 67,924 GDF Suez annual reports for the relevant year at www.gdfsuez.com/en/finance/investors/publications Royalties and production taxes (local currency MM) Royalties and production taxes paid in France are not reported separately. Income taxes (local currency MM) 358 572 48 -348 -520 Based on E&P income taxes paid in France. GDF Suez annual reports for the relevant year Dividends paid to government (local currency MM) 256 336 1,008 1,211 1,997 GDF Suez annual reports for the relevant year Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 4 4 2 2 2 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 1.7 2.48 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 2.7 2.52 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 2.78 2.09 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 1.98 2.1 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 2.9 2.09 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 75 75 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). GDF Suez annual reports for the relevant year NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 1 1 1 1 1 GDF Suez annual reports for the relevant year http://tonto.eia.doe.gov/http://www.gdfsuez.com/en/finance/investors/publicationshttp://tonto.eia.doe.gov/http://www.gdfsuez.com/en/finance/investors/publications32 Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. GDF Suez annual reports for the relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) Not reported. NOC refining capital expenditures as percentage of total capital expenditures (%) Not applicable. NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. Not applicable. NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 30 36 76 75 69 GDF Suez annual reports for the relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). GDF Suez annual reports for the relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0.0 19.8 19.8 21.2 64.4 GDF Suez annual reports for the relevant year Percentage of independent BOD members (%) 33.0 33.0 33.0 42.86 GDF Suez annual reports for the relevant year Appointment authority for NOC chairman and chief executive officer 50 50 50 50 36 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity GDF Suez annual reports for the relevant year Independence of NOC capital and budget processes 50 50 50 50 75 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). GDF Suez annual reports for the relevant year NOC net cash flow after taxes and dividends (local currency MM) 2,933 2,830 4,164 4,806 2,396 GDF Suez annual reports for the relevant years NOC capital expenditures (local currency MM) 1,847 2,463 3,456 4,638 9,848 GDF Suez annual reports for the relevant years NOC financial sustainability (%) 159 115 120 104 24 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) 33 GDF Suez annual reports for the relevant years NOC upstream reserves transparency 30 30 30 35 35 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). GDF Suez annual reports for the relevant years Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 34 6. Kazmunaigaz Exploration and Production (Kazakhstan) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 36.61 95.24 Company oil production MM Bbls 65.38 68.64 69.85 71.48 71.03 E&P production (BOE) MM BOE 65.38 68.64 69.85 78.0 88.0 E&P production growth % 13.36 4.99 1.70 11.66 12.82 Total net additions proved oil reserves MM Bbls Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE Reserve additions (BOE) MM BOE 117.00 138.82 21.76 Reserves replacement rate % 167.14 177.97 24.72 Primary distillation capacity MBPD Total refining throughput MBPD Refinery utilization rate % Assets in USD MM 2,855.51 3,284.04 5,828.67 6,951.05 8,474.90 Output / total assets BOE/000$ 22.76 21.01 12.01 11.22 10.38 Employees # of people 25,272.00 22,322.00 21,113.00 34,000.00 34,000.00 Output / total employees BOE/000$ 2.57 3.09 3.32 2.29 2.59 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) MM 95,433.86 166,613.00 242,868.00 336,503.36 442,524.87 Direct expenditures on social/economic development programs (national currency) MM 500.00 1,791.55 7,850.40 3,660.17 1,649.10 Total revenue (national currency) MM 237,103.22 348,887.82 412,207.79 486,974.88 604,993.42 EBRTN (national currency) MM 95,933.86 168,404.55 250,718.40 340,163.53 444,173.97 EBRTN / revenues % 40.46 48.27 60.82 69.85 73.42 EBRTN / total assets % 25.20 38.59 34.11 39.93 43.57 Total capital expenditures (national currency) MM 50,525.60 63,726.00 49,286.00 177,252.00 43,708.00 Net cash flow after taxes and dividends MM 71,645.00 106,298.00 150,386.73 138,406.02 NCF/CAPEX % 112.43 215.68 84.84 316.66 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00 NOC employment in native country (# people) # of people 25,019.28 22,098.78 20,901.87 33,660.00 33,660.00 NOC annual employment growth % -11.67 -5.42 61.04 0.00 Country Labor Force # of people (000,000) 7,802.97 7,960.80 8,128.67 8,302.23 8,470.87 Country annual employment growth % 0.58 2.02 2.11 2.14 2.03 NOC - Country employment growth % points -13.70 -7.52 58.90 -2.03 NOC employment share of country workforce % 0.32 0.28 0.26 0.41 0.40 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM 270,760.00 243,816.00 388,086.00 340,875.00 Share of local content % 67.30 NOC noncommercial expenditure (national currency) MM 500.00 1,791.55 7,850.40 3,660.17 1,649.10 NOC noncommercial expenditure $ MM Noncommercial expenditure/Total expenditure % 0.66 3.22 0.94 0.48 Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 100.70 339.21 972.01 2,253.29 2,558.82 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM Total NOC Revenues $ MM 237,103.22 348,887.82 412,207.79 486,974.88 604,993.42 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE 15.80 20.50 2.63 Country oil consumption MMBOE 68.10 75.60 82.99 88.97 83.75 Domestic output use % 23.19 27.11 3.17 35 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 13.36 4.99 1.70 11.66 12.82 Reserves replacement rate (BOE, %) 167.14 177.97 24.72 Refinery utilization rate (%) Output / total assets (BOE/'000$) 22.76 21.01 12.01 11.22 10.38 Output / total employees ('000 BOE) 2.57 3.09 3.32 2.29 2.59 Financial Performance EBRTN / revenues (%) 40.46 48.27 60.82 69.85 73.42 EBRTN / total assets (%) 25.20 38.59 34.11 39.93 43.57 NCF / CAPEX (%) 112.43 215.68 84.84 316.66 National Mission Performance Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00 NOC Country employment growth (% points) -13.70 -7.52 58.90 -2.03 NOC employment share of country workforce (%) 0.32 0.28 0.26 0.41 0.40 Share of local content (%) 67.30 Noncommercial expenditures/total expenditures (%) 0.66 3.22 0.94 0.48 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) Domestic output use (%) 23.19 27.11 3.17 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.37 0.21 0.24 0.51 0.34 E&P production growth 0.61 0.06 0.29 0.76 0.72 Reserves replacement rate 0.29 0.92 0.00 Refinery utilization rate Output / total assets 0.47 0.52 0.35 0.34 0.30 Output / total employees 0.02 0.04 0.04 0.02 Financial Performance 0.42 0.42 0.61 0.54 0.81 EBRTN / revenues 0.45 0.50 0.63 0.75 0.80 EBRTN / total assets 0.39 0.41 0.30 0.54 0.64 NCF / CAPEX 0.34 0.91 0.32 1.00 National Mission Performance 0.41 0.27 0.34 0.59 0.44 Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99 NOC Country employment growth 0.07 0.41 1.00 0.17 NOC employment share of country workforce 0.15 0.15 0.18 0.33 0.34 Share of local content 0.69 Noncommercial expenditures/total expenditures 0.05 0.13 0.04 0.03 Noncore commercial activities net income/Total net income Price Subsidies/Revenues Domestic output use 0.09 0.10 0.00 VCI 0.40 0.30 0.40 0.55 0.53 36 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 39,620 39,828 39,828 39,828 39,828 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 1,833 1,833 1,843 1,881 1,822 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 51,149 51,357 51,418 51,661 51,291 CEE calculation STATE CONTEXT WGI: Voice and Accountability -1.11 -0.94 -1.03 -1.07 -1.01 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -0.11 0.01 0.15 0.34 0.51 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.67 -0.56 -0.44 -0.54 -0.47 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.59 -0.46 -0.49 -0.45 -0.37 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -1.01 -0.78 -0.9 -0.81 -0.78 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -1.13 -0.89 -0.85 -0.88 -0.95 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 22 22 38 38 38 "Natural Resource Endowments, Governance, and the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper, WP/08/170, July 2008; http://www.revenuewatch.org/our-work/countries/kazakhstan-transparency.php Hydrocarbon Revenues as % of GDP 6 6 11 11 11 "Natural Resource Endowments, Governance, and the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper, WP/08/170, July 2008; http://www.revenuewatch.org/our-work/countries/kazakhstan-transparency.php WTO membership (yes-1/no-0) over five years 0 0 0 0 0 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 1,038 1,147 1,236 1,238 1,178 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 65 75 129 141 137 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 13 20 25 28 36 Imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 43 57 81 105 133 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 30 35 30 26 27 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 0 3 1 -3 -4 OIC Outlook 08 May 2008 Government Deficit/Surplus in the OIC Member Countries, Organisation of the Islamic Conference; http://www.adb.org/Documents/Books/ADO/2010/KAZ.pdf Stabilization Mechanisms such as petroleum funds (yes-1/no-0) 1 1 1 1 1 http://www.swfinstitute.org/ PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE Publicly disclosed national policy addressing hydrocarbon sector issues (yes-1/no-0) 1 1 1 1 1 "Energy Policy of Kazakhstan," Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, London, 15 March 2006. Institutional structure 66 66 66 66 66 Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by http://www.opec.org/http://data.worldbank.org/indicator37 ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one entity (0). Ministry of Energy and Mineral resources website. Country oil production MM Barrels 473 495 520 542 567 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country gas production BCF 704 798 843 934 1064 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country MMBOE production 594 633 665 703 750 CEE calculation NOC MMBOE Domestic Production 65 69 70 78 88 KMG EP volumes only. Its parent company, Kazmunaigas (100% state-owned) , has significant interests in other upstream companies. KMG EP annual and financial reports and other website information available at www.kmgep.kz/eng/ Non-NOC percentage of oil and gas production (%) 89 89 89 89 88 CEE calculation Country Refinery Capacity - 000 BPD 427 345 345 345 345 US Energy Information Administration, International Energy Statistics. Http://tonto.eia.doe.gov Net NOC Refinery Capacity - 000 BPD (country level) 0 0 0 0 0 KMG EP does not have refining assets. Its parent company, NG KMG, controls about two-thirds of the country's refining capacity. Non-NOC percentage of refinery capacity (%, country level) 100 100 100 100 100 CEE calculation. Total Revenues (local currency MM) 348,888 412,208 486,974 604,993 KMG EP annual and financial reports and other website information Royalties and production taxes (local currency MM) 22,284 25,518 22,780 31,004 KMG EP annual and financial reports and other website information Income taxes (local currency MM) 99,193 94,673 150,511 167,091 Based on E&P income taxes paid in Kazakhstan. KMG EP annual and financial reports and other website information Dividends paid to government (local currency MM) 3,409 15,912 22,574 25,448 KMG EP annual and financial reports and other website information Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 36 33 40 37 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 2.21 2.73 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 2.7 2.7 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 2.79 2.78 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 3.09 3.2 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 2.61 2.33 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 50 50 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured 38 (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). KMG EP annual and financial reports and other website information NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 1 1 1 1 1 KMG EP annual and financial reports and other website information Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 0 0 0 0 0 KMG EP annual and financial reports and other website information NOC upstream capital expenditures as percentage of total capital expenditures (%) 100.0 100.0 100.0 100.0 100.0 KMG EP annual and financial reports and other website information NOC refining capital expenditures as percentage of total capital expenditures (%) Company does not have refining operations. KMG EP annual and financial reports and other website information available at www.kmgep.kz/eng/. NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. Not applicable. NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 0 0 0 0 0 In December 2008, KMG EP signed an international upstream cooperation agreement with BG Group. NG KMG has international operations. KMG EP annual and financial reports and other website information available at www.kmgep.kz/eng/ Joint ventures between the NOC and third parties 66 66 66 66 66 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). KMG EP annual and financial reports for the relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0.0 0.0 38.0 38.0 38.0 KMG EP annual and financial reports for the relevant year Percentage of independent BOD members (%) 0 0 37.5 37.5 37.5 KMG EP annual and financial reports for the relevant year Appointment authority for NOC chairman and chief executive officer 0 0 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity KMG EP annual and financial reports for the relevant year Independence of NOC capital and budget processes 50 50 50 50 50 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). KMG EP annual and financial reports for the relevant year NOC net cash flow after taxes and dividends (local 71,645 106,298 150,387 138,406 KMG EP annual and financial reports for the relevant year 39 currency MM) NOC capital expenditures (local currency MM) 63,726 49,286 177,252 43,708 KMG EP annual and financial reports for the relevant year NOC financial sustainability (%) 112 216 85 317 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 25 25 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) KMG EP annual and financial reports for the relevant year NOC upstream reserves transparency 0 0 0 0 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). KMG EP annual and financial reports for the relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 40 7. Oil and Gas Development Corporation Ltd (Pakistan) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 297.22 345.95 344.16 344.03 358.87 Company oil production MM Bbls 9.94 13.05 12.96 13.93 15.04 E&P production (BOE) MM BOE 58.00 70.00 75.59 76.54 80.35 E&P production growth % 8.99 20.69 7.99 1.26 4.97 Total net additions proved oil reserves MM Bbls Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE Reserve additions (BOE) MM BOE Reserves replacement rate % Primary distillation capacity MBPD Total refining throughput MBPD Refinery utilization rate % Assets $ MM 1,822.17 2,076.35 2,157.88 2,255.06 2,261.11 Output / total assets BOE/000$ 31.83 33.70 35.03 33.94 35.54 Employees # of people 11,872.00 11,708.00 11,000.00 11,335.00 10,961.00 Output / total employees BOE/000$ 4.89 5.98 6.87 6.75 7.33 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 37.18 57.10 76.76 71.75 95.31 Direct expenditures on social/economic development programs (national currency) Bn Total revenue (national currency) Bn 52.62 74.85 97.31 100.73 125.91 EBRTN Bn 31.45 48.85 65.82 60.81 77.99 EBRTN / revenues % 59.77 65.26 67.63 60.37 61.94 EBRTN / total assets % 29.97 39.62 50.94 44.47 51.20 Total capital expenditures (national currency) Bn 4.40 8.17 10.16 16.48 18.35 net cash flow after taxes and dividends Bn 7.90 11.81 11.74 4.31 16.87 NCF/CAPEX % 179.38 144.59 115.55 26.15 91.94 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00 NOC employment in native country (# people) # of people 11,753.28 11,590.92 10,890.00 11,221.65 10,851.39 Country annual employment growth % 4.18 5.29 5.07 2.29 2.60 NOC - Country employment growth % points -5.18 -6.67 -11.12 0.76 -5.90 NOC annual employment growth % -1.00 -1.38 -6.05 3.05 -3.30 Country Labor Force # of people (000,000) 48,095.08 50,637.12 53,205.85 54,421.95 55,836.77 NOC employment share of country workforce % 0.02 0.02 0.02 0.02 0.02 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM Share of local content % NOC noncommercial expenditure (national currency) MM NOC noncommercial expenditure $ MM Noncommercial expenditure/Total expenditure % Net income from non-core commercial business activities % Net income from total commercial activities $ MM Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ Bn Total NOC Revenues $ Bn 0.91 1.26 1.63 1.66 1.87 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE Country oil consumption MMBOE 118.63 113.88 129.94 141.62 141.99 Domestic output use % 41 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 8.99 20.69 7.99 1.26 4.97 Reserves replacement rate (BOE, %) Refinery utilization rate (%) Output / total assets (BOE/'000$) 31.83 33.71 35.03 33.94 35.54 Output / total employees ('000 BOE) 4.89 5.98 6.87 6.75 7.33 Financial Performance EBRTN / revenues (%) 59.77 65.26 67.63 60.37 61.94 EBRTN / total assets (%) 29.97 39.62 50.94 44.47 51.20 NCF / CAPEX (%) 179.38 144.59 115.55 26.15 91.94 National Mission Performance Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00 NOC Country employment growth (% points) -5.18 -6.67 -11.12 0.76 -5.90 NOC employment share of country workforce (%) 0.02 0.02 0.02 0.02 0.02 Share of local content (%) Noncommercial expenditures/total expenditures (%) Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) Domestic output use (%) (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.41 0.35 0.51 0.55 0.54 E&P production growth 0.50 0.10 0.39 0.51 0.48 Reserves replacement rate Refinery utilization rate Output / total assets 0.66 0.85 1.06 1.06 1.06 Output / total employees 0.07 0.09 0.09 0.08 0.09 Financial Performance 0.70 0.55 0.57 0.44 0.55 EBRTN / revenues 0.72 0.72 0.72 0.63 0.67 EBRTN / total assets 0.47 0.42 0.59 0.62 0.77 NCF / CAPEX 0.91 0.51 0.39 0.07 0.23 National Mission Performance 0.45 0.40 0.45 0.41 0.37 Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99 NOC - Country employment growth 0.35 0.21 0.34 0.22 0.12 NOC employment share of country workforce 0.01 0.01 0.01 0.02 0.02 Share of local content Noncommercial expenditures/total expenditures Noncore commercial activities net income/Total net income Price Subsidies/Revenues Domestic output use VCI 0.52 0.43 0.51 0.47 0.49 42 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 297 326 342 359 289 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 798 852 847 850 843 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 5,317 5,685 5,669 5,705 5,952 CEE calculation STATE CONTEXT WGI: Voice and Accountability -1.2 -1.05 -0.98 -1.06 -1.01 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -1.68 -1.7 -1.94 -2.39 -2.61 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.58 -0.55 -0.53 -0.6 -0.73 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.89 -0.59 -0.44 -0.56 -0.47 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.88 -0.89 -0.95 -0.95 -0.92 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -1.05 -0.99 -0.76 -0.82 -0.77 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 3.0 3.0 3.0 3.0 3.0 "Management of Oil and Gas in Pakistan," by Dr. Gulfaraz Ahmed, World Bank Conference on Oil and Gas in Federal Systems, March 2010. Hydrocarbon Revenues as % of GDP 0.3 0.3 0.3 0.3 0.3 "Management of Oil and Gas in Pakistan," by Dr. Gulfaraz Ahmed, World Bank Conference on Oil and Gas in Federal Systems, March 2010. WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 26 28 30 32 32 "Management of Oil and Gas in Pakistan," by Dr. Gulfaraz Ahmed, World Bank Conference on Oil and Gas in Federal Systems, March 2010. (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 0 -1 -1 -1 -1 Imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 98 110 128 143 165 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP -0.3 -0.5 -0.5 -0.6 -0.7 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 3.7 2.3 3.3 4.3 4.3 http://www.tradingeconomics.com/Economics/Government-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 http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=PKRhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=PKR43 Country oil production MM Barrels 23.8 22.8 26 24.2 28.4 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country gas production BCF 1,214 1,254 1,276 1,288 1,321 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country MMBOE production 233 239 246 246 256 CEE calculation NOC MMBOE Domestic Production 58 70 71 72 76 OGDCL annual reports for relevant year available at www.ogdcl.com Non-NOC percentage of oil and gas production (%) 75.1 70.7 71.1 70.8 70.3 CEE calculation Country Refinery Capacity - 000 BPD 276 276 276 276 276 http://www.pump-zone.com/global-news/pakistan-revives-250000-barrel-per-day-khalifa-refinery.html Net NOC Refinery Capacity - 000 BPD (country level) 0 0 0 0 0 OGDCL annual reports for relevant year available at www.ogdcl.com Non-NOC percentage of refinery capacity (%, country level) 100.0 100.0 100.0 100.0 100.0 CEE calculation. Total Revenues (local currency MM) 51,330 73,710 96,760 100,260 125,450 OGDCL annual reports for relevant year Royalties and production taxes (local currency MM) 5,570 8,110 10,872 10,936 17,320 OGDCL annual reports for relevant year Income taxes (local currency MM) 8,101 16,052 19,944 15,500 33,969 Based on E&P income taxes paid in Pakistan. OGDCL annual reports for relevant year Dividends paid to government (local currency MM) 16,340 27,421 32,904 32,904 34,731 OGDCL annual reports for relevant year Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 58.5 70.0 65.9 59.2 68.6 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 3.33 1.98 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 3.20 2.20 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 2.60 2.00 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 2.34 2.40 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 3.00 2.00 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 75 75 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). OGDCL annual reports for relevant year NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production 75.0 75.0 78.0 82.0 86.0 OGDCL annual reports for relevant year 44 operated by specific NOC. If no data yes-1/no-0. Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. OGDCL has no refining operations NOC upstream capital expenditures as percentage of total capital expenditures (%) 100.0 100.0 100.0 100.0 100.0 OGDCL annual reports for relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) OGDCL has no refining operations NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. OGDCL has no refining operations NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 0 0 0 0 0 OGDCL annual reports for relevant year Joint ventures between the NOC and third parties 66 66 66 66 66 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). OGDCL annual reports for relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 7.98 7.98 7.98 14.8 14.8 OGDCL annual reports for relevant year Percentage of independent BOD members (%) 70.0 70.0 72.7 OGDCL annual reports for relevant year Appointment authority for NOC chairman and chief executive officer 0 0 0 0 0 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity OGDCL annual reports for relevant year Independence of NOC capital and budget processes 75 75 75 75 75 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). OGDCL annual reports for relevant year NOC net cash flow after taxes and dividends (local currency MM) 7,900 11,809 11,737 4,310 16,868 OGDCL annual reports for relevant year NOC capital expenditures (local currency MM) 4,404 8,167 10,157 16,477 18,347 OGDCL annual reports for relevant year NOC financial sustainability (%) 179.4 144.6 115.6 26.2 91.9 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation 45 NOC financial transparency 75 75 75 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) OGDCL annual reports for relevant year NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). OGDCL annual reports for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 46 8. Oil and Natural Gas Corporation Ltd (India) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 728.73 723.65 716.80 956.74 986.60 Company oil production MM Bbls 213.00 201.00 214.00 212.00 202.00 E&P production (BOE) MM BOE 392.00 375.00 387.00 388.00 377.00 E&P production growth % 0.20 -4.34 3.20 0.26 -2.84 Total net additions proved oil reserves MM Bbls 277.14 166.33 174.56 181.51 136.97 Total net additions proved gas reserves BCF 210.88 172.97 1,143.93 970.01 1,131.75 Total net additions proved gas reserves MM BOE 38.38 31.48 208.20 176.54 205.98 Reserve additions (BOE) MM BOE 286.00 102.00 585.00 533.00 343.00 Reserves replacement rate % 72.96 27.20 151.16 137.37 90.98 Primary distillation capacity MBPD 194.00 194.00 194.00 194.00 194.00 Total refining throughput MBPD 240.00 242.34 250.64 250.94 251.72 Refinery utilization rate % 123.71 124.92 129.20 129.35 129.75 Assets $ MM 15,893.30 17,844.82 20,548.91 27,506.04 27,257.77 Output / total assets BOE/000$ 30.18 25.97 23.29 17.44 17.20 Employees # of people 36,185.00 34,722.00 33,810.00 32,996.00 33,035.00 Output / total employees BOE/000$ 13.25 13.35 14.15 14.53 14.19 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 288.03 382.55 416.90 492.87 551.57 Direct expenditures on social/economic development programs (national currency) MM 973.73 1,080.29 1,173.22 1,252.62 1,209.47 Total revenue (national currency) Bn 472.45 622.39 742.34 862.76 1,018.35 EBRTN Bn 289.00 383.63 418.08 494.12 552.78 EBRTN / revenues % 61.17 61.64 56.32 57.27 54.28 EBRTN / total assets % 40.47 48.56 44.96 44.62 44.10 Total capital expenditures (national currency) Bn 81.01 104.03 113.83 135.66 168.14 net cash flow after taxes and dividends Bn 118.52 139.89 154.20 213.26 224.59 NCF/CAPEX % 146.30 134.47 135.46 157.20 133.57 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 36,185.00 34,722.00 33,810.00 32,996.00 33,035.00 Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00 NOC employment in native country (# people) # of people 35,823.15 34,374.78 33,471.90 32,666.04 32,704.65 NOC annual employment growth % -4.04 -2.63 -2.41 0.12 Country Labor Force # of people (000,000) 414,900.00 423,300.00 432,000.00 440,900.00 449,900.00 Country annual employment growth % 1.69 2.02 2.06 2.06 2.04 NOC - Country employment growth % points -6.07 -4.68 -4.47 -1.92 NOC employment share of country workforce % 0.01 0.01 0.01 0.01 0.01 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM 152,408.00 273,405.00 347,078.00 400,235.00 514,241.00 Share of local content % NOC noncommercial expenditure (national currency) MM 973.73 1,080.29 1,173.22 1,252.62 1,209.47 NOC noncommercial expenditure $ MM 21.67 24.40 25.93 31.11 26.30 Noncommercial expenditure/Total expenditure % 0.64 0.40 0.34 0.31 0.24 Net income from non-core commercial business activities % Net income from total commercial activities $ MM 2,889.61 3,253.63 3,456.99 4,148.44 3,506.48 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM 501.00 2,337.00 3,302.00 7,899.00 6,184.00 Total NOC Revenues $ MM 10,515.33 14,058.91 16,405.30 21,429.76 22,142.84 Price Subsidies/Revenues % 4.76 16.62 20.13 36.86 27.93 NOC domestic petroleum products production MMBOE 202.00 212.00 214.00 201.00 213.00 Country oil consumption MMBOE 880.85 896.85 965.13 1,031.31 1,065.14 Domestic output use % 22.93 23.64 22.17 19.49 20.00 47 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 0.20 -4.34 3.20 0.26 -2.84 Reserves replacement rate (BOE, %) 72.96 27.20 151.16 137.37 90.98 Refinery utilization rate (%) 123.71 124.92 129.20 129.35 129.75 Output / total assets (BOE/'000$) 30.18 25.97 23.29 17.44 17.20 Output / total employees ('000 BOE) 13.25 13.35 14.15 14.53 14.19 Financial Performance EBRTN / revenues (%) 61.17 61.64 56.32 57.27 54.28 EBRTN / total assets (%) 40.47 48.56 44.96 44.62 44.10 NCF / CAPEX (%) 146.30 134.47 135.46 157.20 133.57 National Mission Performance Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00 NOC - Country employment growth (% points) -6.07 -4.68 -4.47 -1.92 NOC employment share of country workforce (%) 0.01 0.01 0.01 0.01 0.01 Share of local content (%) Noncommercial expenditures/total expenditures (%) 0.64 0.40 0.34 0.31 0.24 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) 4.76 16.62 20.13 36.86 27.93 Domestic output use (%) 22.93 23.64 22.17 19.49 20.00 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.51 0.43 0.49 0.60 0.51 E&P production growth 0.25 0.03 0.31 0.49 0.24 Reserves replacement rate 0.44 0.26 0.25 0.81 0.63 Refinery utilization rate 1.00 1.00 1.00 1.00 1.00 Output / total assets 0.63 0.65 0.70 0.54 0.51 Output / total employees 0.22 0.22 0.21 0.18 0.18 Financial Performance 0.71 0.56 0.52 0.62 0.53 EBRTN / revenues 0.73 0.67 0.58 0.59 0.58 EBRTN / total assets 0.65 0.55 0.49 0.63 0.65 NCF / CAPEX 0.75 0.45 0.49 0.63 0.37 National Mission Performance 0.29 0.31 0.43 0.37 0.38 Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99 NOC Country employment growth 0.22 0.47 0.14 0.18 NOC employment share of country workforce 0.00 0.00 0.01 0.01 0.01 Share of local content Noncommercial expenditures/total expenditures 0.22 0.03 0.01 0.01 0.01 Noncore commercial activities net income/Total net income Price Subsidies/Revenues 0.16 0.53 1.00 1.00 1.00 Domestic output use 0.08 0.08 0.10 0.07 0.13 VCI 0.50 0.43 0.48 0.53 0.48 48 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 5,565 5,919 5,693 5,459 5,798 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 923 1,101 1,075 1,055 1,090 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 11,371 12,844 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/Government-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 http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=INRhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=INRhttp://petroleum.nic.in/http://petroleum.nic.in/49 Country gas production BCF 1,030 1,046 1,034 1,062 1,077 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country MMBOE production 460 449 456 464 465 CEE calculation NOC MMBOE Domestic Production 392 375 387 388 377 ONGC annual reports for relevant year available at www.ongcindia.com Non-NOC percentage of oil and gas production (%) 14.7 16.5 15.2 16.4 18.9 CEE calculation Country Refinery Capacity - 000 BPD 2,558 2,558 2,872 2,983 2,992 http://www.pump-zone.com/global-news/pakistan-revives-250000-barrel-per-day-khalifa-refinery.html Net NOC Refinery Capacity - 000 BPD (country level) 250 250 250 250 250 ONGC annual reports for relevant year Non-NOC percentage of refinery capacity (%, country level) 90.2 90.2 91.3 91.6 91.6 CEE calculation. Total Revenues (local currency MM) 472,454 494,397 590,575 615,426 650,494 ONGC annual reports for relevant year Royalties and production taxes (local currency MM) 96,836 93,739 115,191 120,809 93,445 ONGC annual reports for relevant year Income taxes (local currency MM) 66,825 74,063 80,273 85,330 78,544 Based on E&P income taxes paid in India. ONGC annual reports for relevant year Dividends paid to government (local currency MM) 47,952 54,144 56,558 59,256 59,256 ONGC annual reports for relevant year Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 44.8 44.9 42.7 43.1 35.5 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 1.84 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 2.14 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 2.75 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 2.72 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 2.4 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 75 75 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). ONGC annual reports for relevant year NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 1 1 1 1 1 % operated not disclosed in annual reports but company appears to be a substantial operating entity Percentage of NOC domestic refining 100.0 100.0 100.0 100.0 100.0 ONGC annual reports for relevant year 50 production operated by specific NOC. If no data yes-1/no-0. NOC upstream capital expenditures as percentage of total capital expenditures (%) Not reported NOC refining capital expenditures as percentage of total capital expenditures (%) Not reported NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 208.0 211.0 194.0 208.0 208.0 ONGC annual reports for relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 1 1 1 1 1 ONGC annual reports for relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). ONGC annual reports for relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 25.86 16.90 15.77 15.77 15.77 ONGC annual reports for relevant year Percentage of independent BOD members (%) 36.36 41.67 46.15 30.77 47.05 ONGC annual reports for relevant year Appointment authority for NOC chairman and chief executive officer 0 0 0 0 0 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity. ONGC annual reports for relevant year Independence of NOC capital and budget processes 25 25 25 25 25 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). ONGC annual reports for relevant year NOC net cash flow after taxes and dividends (local currency MM) 118,517 101,966 147,113 169,844 156,020 ONGC annual reports for relevant year NOC capital expenditures (local currency MM) 81,011 93,524 96,950 141,578 152,749 ONGC annual reports for relevant year NOC financial sustainability (%) 146.3 109.0 151.7 120.0 102.1 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 50 50 50 50 50 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) 51 ONGC annual reports for relevant year NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). ONGC annual reports for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 52 9. Petrleos de Venezuela, S.A. (Venezuela) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 2,396.59 2,557.92 1,391.00 1,405.00 1,297.00 Company oil production MM Bbls 1,034.05 1,060.69 1,192.00 1,075.00 1,197.00 E&P production (BOE) MM BOE 1,470.22 1,526.23 1,445.16 1,330.71 1,433.05 E&P production growth % 26.39 3.81 -5.31 -7.92 7.69 Total net additions proved oil reserves MM Bbls 723.69 688.00 748.00 405.00 Total net additions proved gas reserves BCF 3,248.92 12,748.00 3,624.00 1,252.00 Total net additions proved gas reserves MM BOE 591.30 2,320.14 659.57 227.86 Reserve additions (BOE) MM BOE 1,314.99 3,008.14 1,407.57 632.86 Reserves replacement rate % 86.16 208.15 105.78 44.16 Primary distillation capacity MBPD 3,102.00 3,102.00 3,102.00 3,098.00 3,035.00 Total refining throughput MBPD 2,854.00 2,854.00 2,854.00 2,521.00 2,441.00 Refinery utilization rate % 92.01 92.01 92.01 81.38 80.43 Assets $ MM 61,847.00 70,365.00 80,529.00 106,894.00 131,832.00 Output / total assets BOE/000$ 40.62 36.49 30.88 21.06 17.63 Employees # of people 64,449.00 59,678.00 68,106.00 77,292.00 80,000.00 Output / total employees BOE/000$ 38.98 43.03 36.51 29.12 29.05 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes $ MM 21,462.00 32,532.00 41,949.00 47,857.00 52,032.00 Direct expenditures on social/economic development programs $ MM 1,242.00 6,909.00 13,784.00 14,102.00 14,733.00 Total revenue $ MM 62,242.00 82,915.00 99,252.00 96,242.00 126,364.00 EBRTN $ MM 22,704.00 39,441.00 55,733.00 61,959.00 66,765.00 EBRTN / revenues % 36.48 47.57 56.15 64.38 52.84 EBRTN / total assets % 36.71 56.05 69.21 57.96 50.64 Total capital expenditures $ MM 5,385.00 3,939.00 1,748.00 11,066.00 18,413.00 net cash flow after taxes and dividends $ MM 7,490.00 4,278.00 2,328.00 1,151.00 14,452.00 NCF/CAPEX % 139.09 108.61 133.18 10.40 78.49 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 59,211.00 54,305.00 62,723.00 72,152.00 74,900.00 Total number of NOC non-local employees # of people 5,238.00 5,373.00 5,383.00 5,140.00 5,100.00 Share of nationals in NOC workforce % 91.87 91.00 92.10 93.35 93.63 NOC employment in native country (# people) # of people 59,211.00 54,305.00 62,723.00 72,152.00 74,900.00 NOC annual employment growth % -12.72 -8.29 15.50 15.03 3.81 Country Labor Force # of people (000,000) 11,552.00 11,900.73 12,251.75 12,411.74 12,720.89 Country annual employment growth % 3.11 3.02 2.95 1.31 2.49 NOC - Country employment growth pp -15.83 -11.30 12.55 13.73 1.32 NOC employment share of country workforce % points 0.51 0.46 0.51 0.58 0.59 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM 42,996.00 50,518.00 55,779.00 54,105.00 81,116.00 Share of local content % NOC noncommercial expenditure (national currency) $ MM NOC noncommercial expenditure $ MM 1,242.00 6,909.00 13,784.00 14,102.00 14,733.00 Noncommercial expenditure/Total expenditure % 2.89 13.68 24.71 26.06 18.16 Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 5,406.00 6,483.00 5,452.00 6,273.00 9,413.00 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM 9,784.38 15,075.58 18,924.07 22,568.16 Total NOC Revenues $ MM 62,242.00 82,915.00 99,252.00 96,242.00 126,364.00 Price Subsidies/Revenues % 15.72 18.18 19.07 23.45 NOC domestic petroleum products production MMBOE 415.00 433.00 423.00 486.18 Country oil consumption MMBOE 190.84 210.30 221.73 242.79 262.47 Domestic output use % 217.46 205.89 190.78 200.25 53 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 26.39 3.81 -5.31 -7.92 7.69 Reserves replacement rate (BOE, %) 86.16 208.15 105.78 44.16 Refinery utilization rate (%) 92.01 92.01 92.01 81.38 80.43 Output / total assets (BOE/'000$) 40.62 36.49 30.88 21.06 17.63 Output / total employees ('000 BOE) 38.98 43.03 36.51 29.12 29.05 Financial Performance EBRTN / revenues (%) 36.48 47.57 56.15 64.38 52.84 EBRTN / total assets (%) 36.71 56.05 69.21 57.96 50.64 NCF / CAPEX (%) 139.09 108.61 133.18 10.40 78.49 National Mission Performance Share of nationals in NOC workforce (%) 91.87 91.00 92.10 93.35 93.63 NOC Country employment growth (% points) -15.83 -11.30 12.55 13.73 1.32 NOC employment share of country workforce (%) 0.51 0.46 0.51 0.58 0.59 Share of local content (%) Noncommercial expenditures/total expenditures (%) 2.89 13.68 24.71 26.06 18.16 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) 15.72 18.18 19.07 23.45 Domestic output use (%) 217.46 205.89 190.78 200.25 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.78 0.53 0.48 0.44 0.37 E&P production growth 1.00 0.05 0.18 0.28 0.56 Reserves replacement rate 0.46 0.39 0.73 0.18 Refinery utilization rate 0.55 0.49 0.34 0.18 0.18 Output / total assets 0.85 0.92 0.93 0.65 0.52 Output / total employees 0.70 0.75 0.55 0.38 0.37 Financial Performance 0.56 0.49 0.65 0.52 0.50 EBRTN / revenues 0.40 0.49 0.57 0.68 0.56 EBRTN / total assets 0.59 0.65 0.91 0.87 0.76 NCF / CAPEX 0.71 0.32 0.48 0.00 0.19 National Mission Performance 0.61 0.64 0.84 0.74 0.66 Share of nationals in NOC workforce 0.90 0.89 0.90 0.92 0.92 NOC - Country employment growth 0.00 0.12 0.81 0.39 0.22 NOC employment share of country workforce 0.23 0.24 0.36 0.47 0.50 Share of local content Noncommercial expenditures/total expenditures 1.00 1.00 1.00 1.00 1.00 Noncore commercial activities net income/Total net income Price Subsidies/Revenues 0.53 0.58 0.95 0.64 Domestic output use 0.97 1.00 1.00 1.00 VCI 0.65 0.55 0.66 0.57 0.51 54 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 79,729 80,012 87,324 99,377 172,323 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 4,287 4,315 4,708 4,838 4,983 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 106,694 107,153 116,937 129,808 203,666 CEE calculation STATE CONTEXT WGI: Voice and Accountability -0.59 -0.61 -0.45 -0.60 -0.62 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -1.20 -1.18 -1.16 -1.20 -1.23 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.90 -0.82 -0.79 -0.87 -0.85 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -1.12 -1.20 -1.25 -1.56 -1.44 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -1.21 -1.27 -1.38 -1.50 -1.59 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -1.02 -1.06 -1.01 -1.07 -1.13 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 53.0 53.0 53.0 53.0 53.0 "Natural Resource Endowments, Governance and the Domestic Revenue Effort," by Fabian Bornhorst, Sanjeev Gupta, and John Thornton, IMF Working Paper, WP/08/170, July 2008; www.eia.doe.gov/cabs/Venezuela/pdf.pdf Hydrocarbon Revenues as % of GDP 15.0 15.0 25.0 28.0 33.0 "Natural Resource Endowments, Governance and the Domestic Revenue Effort," by Fabian Bornhorst, Sanjeev Gupta, and John Thornton, IMF Working Paper, WP/08/170, July 2008; www.eia.doe.gov/cabs/Venezuela/pdf.pdf WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 1 1 1 1 1 www.opec.org Country Crude Oil Exports -000 BPD 1,566 1,788 1,919 2,116 1,770 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 19 30 39 51 60 Exports valued at Venezuela TJL oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 112 146 185 228 314 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 17.2 20.7 20.9 22.2 19.0 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product -4.1 -1.3 2.3 http://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=VEB Stabilization Mechanisms such as petroleum funds (yes-1/no-0) 1 1 1 1 1 http://www.swfinstitute.org/ PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE Publicly disclosed national policy addressing hydrocarbon sector issues (yes-1/no-0) 1 1 1 1 1 PdVSA annual reports and website information Institutional structure 50 50 50 50 50 Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=VEBhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=VEB55 is performed by NOC (33); All three functions combined in one entity (0). PdVSA annual reports and website information Country oil production MM Barrels 1,149 1,195 1,186 1,150 1,150 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country gas production BCF 1,000 968 1,112 1,133 1,109 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country MMBOE production 1,321 1,362 1,378 1,345 1,341 CEE calculation NOC MMBOE Domestic Production 1,147 1,182 1,182 1,127 1,121 PdVSA annual reports and website information Non-NOC percentage of oil and gas production (%) 13.2% 13.2% 14.2% 16.2% 16.4% CEE calculation Country Refinery Capacity - 000 BPD 1,306 1,311 1,311 1,311 1,311 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Net NOC Refinery Capacity - 000 BPD (country level) 1,303 1,303 1,303 1,303 1,303 PdVSA annual reports and website information Non-NOC percentage of refinery capacity (%, country level) 0.2 0.6 0.6 0.6 0.6 CEE calculation. Total Revenues (local currency MM) 62,242 82,915 99,252 96,242 126,364 PdVSA annual reports and website information Royalties and production taxes (local currency MM) 9,247 13,318 18,435 21,981 23,462 PdVSA annual reports and website information Income taxes (local currency MM) 6,662 12,702 17,815 14,102 14,733 Based on E&P income taxes paid in Venezuela. PdVSA annual reports and website information Dividends paid to government (local currency MM) 1,302 1,317 1,716 2,658 2,000 PdVSA annual reports and website information Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 27.7 33.0 38.3 40.3 31.8 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 3.45 4.12 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 3.62 4.01 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 3.30 3.87 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 4.10 4.61 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 2.92 2.43 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 25 25 25 25 25 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). PdVSA annual reports and website information NOC STRATEGY AND BEHAVIOR Percentage of NOC 1 1 1 1 1 % operated not disclosed in annual reports but 56 domestic upstream production operated by specific NOC. If no data yes-1/no-0. company appears to be a substantial operating entity Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100 100 100 100 100 PdVSA annual reports and website information NOC upstream capital expenditures as percentage of total capital expenditures (%) 60.0 60.0 58.0 62.0 70.0 PdVSA annual reports and website information NOC refining capital expenditures as percentage of total capital expenditures (%) 20.0 20.0 23.4 16.0 9.0 PdVSA annual reports and website information NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 70.0 70.0 69.0 70.0 70.0 PdVSA annual reports and website information NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 10.0 10.0 15.0 11.0 13.0 PdVSA annual reports and website information Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). PdVSA annual reports and website information NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0.0 0.0 0.0 0.0 0.0 PdVSA annual reports and website information Percentage of independent BOD members (%) 0.0 0.0 0.0 0.0 20.0 PdVSA annual reports and website information Appointment authority for NOC chairman and chief executive officer 0 0 0 0 0 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity PdVSA annual reports and website information Independence of NOC capital and budget processes 50 50 50 50 50 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). PdVSA annual reports and website information NOC net cash flow after taxes and dividends (local currency MM) 7,490 4,278 2,328 1,151 14,452 PdVSA annual reports and website information NOC capital expenditures (local currency MM) 5,385 3,939 1,748 11,066 18,413 PdVSA annual reports and website information NOC financial sustainability (%) 139.1 108.6 133.2 10.4 78.5 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation 57 NOC financial transparency 0 0 75 75 75 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) PdVSA annual reports and website information NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). PdVSA annual reports and website information Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 58 10. Petrleos Mexicanos S.A. (Mexico) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 1,231.00 1,305.00 1,487.00 1,744.00 1,643.00 Company oil production MM Bbls 1,374.00 1,354.00 1,332.00 1,268.00 1,135.00 E&P production (BOE) MM BOE 1,598.04 1,591.51 1,602.63 1,585.41 1,434.03 E&P production growth % -1.43 -0.41 0.70 -1.07 -9.55 Total net additions proved oil reserves MM Bbls 136.00 222.00 512.00 605.00 814.00 Total net additions proved gas reserves BCF 1,188.00 1,055.00 785.00 1,050.00 1,184.00 Total net additions proved gas reserves MM BOE 216.22 192.01 142.87 191.10 215.49 Reserve additions (BOE) MM BOE 352.22 414.01 654.87 796.10 1,029.49 Reserves replacement rate % 22.04 26.01 40.86 50.21 71.79 Primary distillation capacity MBPD 1,540.00 1,540.00 1,540.00 1,540.00 1,540.00 Total refining throughput MBPD 1,303.00 1,284.00 1,284.00 1,270.00 1,261.00 Refinery utilization rate % 84.61 83.38 83.38 82.47 81.88 Assets $ MM 86,646.55 99,524.00 110,719.00 122,423.75 89,412.06 Output / total assets BOE/000$ 23.93 20.70 18.71 16.74 21.19 Employees # of people 138,042.00 139,483.00 141,582.00 141,146.00 143,421.00 Output / total employees BOE/000$ 15.02 14.77 14.63 14.52 13.21 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 481.90 510.60 675.56 678,99 767.14 Direct expenditures on social/economic development programs (national currency) Bn 0.80 1.18 1.81 1.70 2.67 Total revenue (national currency) Bn 810.89 940.48 1,106.10 1,139.26 1,328.95 EBRTN Bn 482.70 511.77 677.37 680.70 769.81 EBRTN / revenues % 59.53 54.42 61.24 59.75 57.93 EBRTN / total assets % 49.30 49.09 56.13 51.17 62.24 Total capital expenditures (national currency) Bn 100.32 104.57 122.68 136.91 159.74 net cash flow after taxes and dividends Bn -0.71 48.32 146.69 216.70 69.12 NCF/CAPEX % -0.70 46.20 119.58 158.28 43.27 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00 NOC employment in native country (# people) # of people 136,661.58 138,088.17 140,166.18 139,734.54 141,986.79 NOC annual employment growth % -1.12 1.04 1.50 -0.31 1.61 Country Labor Force # of people (000,000) 42,614.10 43,294.33 44,761.01 45,647.42 46,706.07 Country annual employment growth % 3.96 1.60 3.39 1.98 2.32 NOC - Country employment growth % points -5.09 -0.55 -1.88 -2.29 -0.71 NOC employment share of country workforce % 0.32 0.32 0.31 0.31 0.30 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM 391,391.00 487,660.00 565,856.00 622,377.00 847,732.00 Share of local content % NOC Noncommercial expenditures (local currency) MM 802.00 1,177.00 1,809.00 1,702.00 2,670.00 NOC Noncommercial expenditures $ MM Noncommercial expenditure/Total expenditure % 0.20 0.24 0.32 0.27 0.31 Net income from non-core commercial business activities % Net income from total commercial activities $ MM -2,426.00 -7,282.00 4,159.00 -3,002.00 -1,309.99 Net income noncore commercial activities/Net income % Price subsidies provided by NOC (local currency) MM 1,595.00 4,743.00 2,325.00 1,242.01 3,877.39 Total NOC Revenues (local currency) Bn 810,89 940.48 1,106.10 1,139.26 1,328.95 Price Subsidies/Revenues % 0.20 0.50 0.21 0.11 0.3 NOC domestic petroleum products production MMBOE 653.55 549.82 549.39 582.39 697.98 Country oil consumption MMBOE 700.23 720.49 719.03 739.72 744.39 Domestic output use % 93.33 76.31 76.41 78.73 93.77 59 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) -1.43 -0.41 0.70 -1.07 -9.55 Reserves replacement rate (BOE, %) 22.04 26.01 40.86 50.21 71.79 Refinery utilization rate (%) 84.61 83.38 83.38 82.47 81.88 Output / total assets (BOE/'000$) 23.93 20.70 18.71 16.74 21.19 Output / total employees ('000 BOE) 15.02 14.77 14.63 14.52 13.21 Financial Performance EBRTN / revenues (%) 59.53 54.42 61.24 59.75 57.93 EBRTN / total assets (%) 49.30 49.09 56.13 51.17 62.24 NCF / CAPEX (%) -0.70 46.20 119.58 158.28 43.27 National Mission Performance Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00 NOC Country employment growth (% points) -5.09 -0.55 -1.88 -2.29 -0.71 NOC employment share of country workforce (%) 0.32 0.32 0.31 0.31 0.30 Share of local content (%) Noncommercial expenditures/total expenditures (%) 0.20 0.24 0.32 0.27 0.31 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) 0.20 0.50 0.21 0.11 0.29 Domestic output use (%) 93.33 76.31 76.41 78.73 93.766 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.34 0.28 0.25 0.39 0.30 E&P production growth 0.20 0.04 0.27 0.45 0.04 Reserves replacement rate 0.29 0.25 0.00 0.57 0.44 Refinery utilization rate 0.45 0.36 0.19 0.20 0.21 Output / total assets 0.49 0.51 0.55 0.52 0.63 Output / total employees 0.26 0.25 0.21 0.18 0.17 Financial Performance 0.50 0.38 0.58 0.67 0.54 EBRTN / revenues 0.71 0.58 0.64 0.63 0.62 EBRTN / total assets 0.80 0.56 0.68 0.75 0.95 NCF / CAPEX 0.00 0.00 0.41 0.63 0.06 National Mission Performance 0.33 0.31 0.36 0.30 0.36 Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99 NOC Country employment growth 0.35 0.33 0.52 0.17 0.19 NOC employment share of country workforce 0.15 0.17 0.22 0.25 0.26 Share of local content Noncommercial expenditures/total expenditures 0.07 0.02 0.01 0.01 0.02 Noncore commercial activities net income/Total net income Price Subsidies/Revenues 0.01 0.02 0.01 0.00 0.01 Domestic output use 0.41 0.35 0.39 0.38 0.71 VCI 0.39 0.32 0.39 0.45 0.40 60 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 14,803 13,670 12,850 12,187 11,866 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 419 408 388 512 500 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 17,438 16,236 15,290 15,406 15,058 CEE calculation STATE CONTEXT WGI: Voice and Accountability 0.31 0.17 0.09 0.05 0.08 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -0.04 -0.23 -0.48 -0.5 -0.62 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 0.10 -0.01 0.1 0.12 0.18 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 0.44 0.32 0.38 0.39 0.45 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.37 -0.48 -0.51 -0.56 -0.64 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.33 -0.38 -0.32 -0.34 -0.26 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 32.0 33.0 33.0 34.0 35.0 "Natural Resource Endowments, Governance and the Domestic Revenue Effort," IMF Working Paper prepared by Fabian Bornhurst, Sanjeev Gupta and John Thornton, July 2008, WP/08/170; "Extractive Industries Revenues Distribution at the Sub-National Level,: Matteo Morgandi, Prepared for Revenue Watch Institute, New York, June 2008; "Oil and Gas Fiscal System in Mexico," Pedro Luna, Ministry of Finance, Mexico, World Bank Conference on Oil and Gas in Federal Systems, March 2010. Hydrocarbon Revenues as % of GDP 7.2 7.2 8.3 9.0 10.5 http://devdata.worldbank.org/AAG/mex_aag.pdf WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 2,124 2,021 2,048 1,738 1,446 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 23 30 38 44 45 Exports valued at Mexico Maya oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 759 847 949 1020 1090 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 3.1 3.6 4.0 4.3 4.1 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 2.5 2.5 2.3 2.2 1.8 Pemex Form 20Fs for relevant year Stabilization Mechanisms such as petroleum funds (yes-1/no-0) 1 1 1 1 1 Pemex Form 20Fs for relevant year PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE Publicly disclosed national policy addressing hydrocarbon sector issues (yes-1/no-0) 1 1 1 1 1 Pemex Form 20Fs for relevant year Institutional structure 83 83 83 83 83 Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one entity (0). http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://data.worldbank.org/indicator61 Pemex Form 20Fs for relevant year Country oil production MM Barrels 1,396 1,372 1,344 1,267 1,152 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country gas production BCF 1,504 1,590 1,822 1,908 1,934 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country MMBOE production 1,586 1,579 1,588 1,568 1,418 Lesser of BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview or Pemex Form 20Fs for relevant years. There may be a small amount of natural gas production operated on behalf of Pemex by third party service contractors but this data is not available. NOC MMBOE Domestic Production 1,586 1,579 1,588 1,568 1,418 Pemex Form 20Fs for relevant year Non-NOC percentage of oil and gas production (%) 0.0 0.0 0.0 0.0 0.0 CEE calculation Country Refinery Capacity - 000 BPD 1,540 1,540 1,540 1,540 1,540 Greater of Pemex Form 20Fs or BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Net NOC Refinery Capacity - 000 BPD (country level) 1,540 1,540 1,540 1,540 1,540 Pemex Form 20Fs for relevant year Non-NOC percentage of refinery capacity (%, country level) 0.0 0.0 0.0 0.0 0.0 CEE calculation. Total Revenues (local currency MM) 810,894 940,480 1,106,100 1,139,257 1,328,950 Pemex Form 20Fs for relevant year Royalties and production taxes (local currency MM) 490,142 578,651 595,245 667,999 767,522 Pemex Form 20Fs for relevant year Income taxes (local currency MM) 0 0 9,520 9,256 4,179 Based on E&P income taxes paid in Mexico. Pemex Form 20Fs for relevant year Dividends paid to government (local currency MM) 10,734 10,636 16,393 263 -35,457 Pemex Form 20Fs for relevant year Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 61.8 62.7 56.2 59.5 55.4 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 25 25 25 25 25 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). 62 Pemex Form 20Fs for relevant year NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 100.0 100.0 100.0 100.0 100.0 Pemex Form 20Fs for relevant year. There may be a small portion of natural gas production that is operated by third party service contractors on behalf of Pemex but this data is not available. Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100.0 100.0 100.0 100.0 100.0 Pemex Form 20Fs for relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) 90.5 86.5 83.4 84.4 85.2 Pemex Form 20Fs for relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) 5.1 8.6 12.4 11.7 10.9 Pemex Form 20Fs for relevant year NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 268.9 261.4 262.2 249.9 229.6 Pemex Form 20Fs for relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 0.0 0.0 0.0 0.0 0.0 Pemex Form 20Fs for relevant year Joint ventures between the NOC and third parties 33 33 33 33 33 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Pemex Form 20Fs for relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0.0 0.0 0.0 0.0 0.0 Pemex Form 20Fs for relevant year Percentage of independent BOD members (%) 0.0 0.0 0.0 0.0 0.0 Pemex Form 20Fs for relevant year Appointment authority for NOC chairman and chief executive officer 0 0 0 0 0 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity Pemex Form 20Fs for relevant year Independence of NOC capital and budget processes 0 0 0 0 0 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). Pemex Form 20Fs for relevant year NOC net cash flow after taxes and dividends (local currency MM) -705 48,315 146,694 216,703 69,119 Pemex Form 20Fs for relevant year NOC capital expenditures (local currency MM) 100,324 104,572 122,677 136,913 159,738 Pemex Form 20Fs for relevant year NOC financial sustainability (%) -0.7 46.2 119.6 158.3 43.3 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % 63 CEE Calculation NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Pemex Form 20Fs for relevant year NOC upstream reserves transparency 100 100 100 100 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Pemex Form 20Fs for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 64 11. The Petroleum Oil and Gas Corporation of South Africa (Pty) Limited (South Africa) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 49.90 70.30 64.20 58.00 53.00 Company oil production MM Bbls 7.1 10.7 8.0 5.4 4.6 E&P production (BOE) MM BOE 16.18 23.49 19.68 15.96 14.25 E&P production growth % 45.19 -16.22 -18.94 -10.72 Total net additions proved oil reserves MM Bbls -11.70 23.80 1.20 -1.80 0.00 Total net additions proved gas reserves BCF 1.60 84.30 83.20 -133.00 20.00 Total net additions proved gas reserves MM BOE 0.29 15.34 15.14 -24.21 3.64 Reserve additions (BOE) MM BOE -11.41 39.14 16.34 -26.01 3.64 Reserves replacement rate % -70.50 166.60 83.02 -162.99 25.55 Primary distillation capacity MBPD Total refining throughput MBPD Refinery utilization rate % Assets $ MM 1,843.19 2,075.00 2,306.07 2,622.53 2,851.31 Output / total assets BOE/000$ 8.78 11.32 8.54 6.08 5.00 Employees # of people 1,263.00 1,587.00 1,399.00 Output / total employees BOE/000$ 18.60 12.40 11.41 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) MM 240.00 2,125.00 2,911.00 2,694.00 2,666.00 Direct expenditures on social/economic development programs (national currency) MM 26.10 19.00 5.00 44.80 85.10 Total revenue (national currency) MM 3,471.00 6,446.00 7,509.00 8,952.00 11,018.77 EBRTN MM 266.10 2,144.00 2,916.00 2,738.80 2,751.10 EBRTN / revenues % 7.67 33.26 38.83 30.59 24.97 EBRTN / total assets % 2.23 16.25 18.71 14.35 11.90 Total capital expenditures (national currency) MM 288.00 288.00 461.00 1,646.00 1,722.00 Net cash flow after taxes and dividends MM 301.80 4,061.00 3,401.00 3,199.00 3,793.00 NCF/CAPEX % 104.79 1,410.07 737.74 194.35 220.27 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 1,237.74 1,539.39 1,343.04 Total number of NOC non-local employees # of people 25.26 47.61 55.96 Share of nationals in NOC workforce % 98.04 97.09 96.00 NOC employment in native country (# people) # of people 1,237.74 1,539.39 1,343.04 NOC annual employment growth % 24.37 -12.76 Country Labor Force # of people (000,000) 16,793.63 17,141.12 17,503.48 17,884.21 18,641.83 Country annual employment growth % 1.74 2.07 2.11 2.18 4.24 NOC - Country employment growth % points 22.26 -14.93 NOC employment share of country workforce % 0.01 0.01 0.01 NOC local purchases goods and services $ MM 126.42 264.13 441.22 465.72 NOC total purchases goods and services $ MM 471.36 416.19 660.32 1,076.15 667.22 Share of local content % 30.37 40.00 41.00 69.80 NOC noncommercial expenditure (national currency) MM 26.10 19.00 5.00 44.80 85.10 NOC noncommercial expenditure $ MM 4.04 2.99 0.74 6.15 10.49 Noncommercial expenditure/Total expenditure % 0.86 0.72 0.11 0.57 1.57 Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 239.50 1,736.71 2,765.35 2,714.31 1,830.37 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM Total NOC Revenues $ MM 537.31 1,013.52 1,110.80 1,229.67 1,358.61 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE 8.80 15.00 11.38 10.17 7.92 Country oil consumption MMBOE 190.90 191.99 196.01 200.39 203.67 Domestic output use % 4.61 7.81 5.81 5.08 3.89 65 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 45.19 -16.22 -18.94 -10.72 Reserves replacement rate (BOE, %) -70.50 166.60 83.02 -162.99 25.55 Refinery utilization rate (%) Output / total assets (BOE/'000$) 8.78 11.32 8.54 6.08 5.00 Output / total employees ('000 BOE) 18.60 12.40 11.41 Financial Performance EBRTN / revenues (%) 7.67 33.26 38.83 30.59 24.97 EBRTN / total assets (%) 2.23 16.25 18.71 14.35 11.90 NCF / CAPEX (%) 104.7 1,410.07 737.74 194.35 220.27 National Mission Performance Share of nationals in NOC workforce (%) 0.00 98.04 97.09 96.00 NOC Country employment growth (% points) 22.26 -14.93 NOC employment share of country workforce (%) 0.01 0.01 0.01 Share of local content (%) 30.37 40.00 41.00 69.80 Noncommercial expenditures/total expenditures (%) 0.86 0.72 0.11 0.57 1.57 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) Domestic output use (%) 4.61 7.81 5.81 5.08 3.89 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.09 0.37 0.13 0.08 0.05 E&P production growth 0.18 0.00 0.01 0.00 Reserves replacement rate 0.01 0.72 0.10 -0.01 0.01 Refinery utilization rate Output / total assets 0.16 0.27 0.24 0.18 0.14 Output / total employees 0.32 0.18 0.14 Financial Performance 0.18 0.20 0.20 0.37 0.34 EBRTN / revenues 0.00 0.30 0.36 0.26 0.23 EBRTN / total assets 0.00 0.10 0.04 0.07 0.11 NCF / CAPEX 0.53 0.79 0.67 National Mission Performance 0.22 0.33 0.22 0.27 Share of nationals in NOC workforce 0.98 0.96 0.95 NOC Country employment growth 1.00 0.00 NOC employment share of country workforce 0.00 0.01 0.01 Share of local content 0.00 0.00 0.35 0.72 Noncommercial expenditures/total expenditures 0.30 0.05 0.00 0.02 0.09 Noncore commercial activities net income/Total net income Price Subsidies/Revenues Domestic output use 0.00 0.00 0.01 0.00 0.00 VCI 0.09 0.26 0.22 0.23 0.22 66 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 16 16 16 15 15 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 0 0 0 0 0 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 16 16 16 15 15 CEE calculation STATE CONTEXT WGI: Voice and Accountability 0.75 0.75 0.83 0.71 0.68 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -0.17 -0.03 0.00 0.04 -0.04 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 0.78 0.83 0.71 0.72 0.75 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 0.55 0.48 0.55 0.42 0.63 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law 0.15 0.16 0.24 0.13 0.12 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control 0.44 0.55 0.45 0.33 0.30 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues Hydrocarbon Revenues as % of GDP WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 0 4 5 4 6 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 471 538 443 451 470 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion -6 -10 -10 -11 -16 Imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 216 243 258 284 276 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP -2.9 -4.1 -3.8 -4.0 -5.8 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product -2.6 -2.1 18.0 http://www.tradingeconomics.com/Economics/Government-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_content&view=article&id=1&Itemid=2 http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=ZARhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=ZAR67 Country oil production MM Barrels 85 79 74 72 71 US Energy Information Administration at http://tonto.eia.doe.gov. Country gas production BCF 79 78 102 106 115 US Energy Information Administration at http://tonto.eia.doe.gov. Country MMBOE production 99 92 92 90 91 CEE calculation NOC MMBOE Domestic Production 16 23 19 15 14 Petro SA annual reports for the relevant year available at www.petrosa.co.za Non-NOC percentage of oil and gas production (%) 84.0 75.0 79.0 83.0 85.0 CEE calculation Country Refinery Capacity - 000 BPD 692 692 692 692 692 US Energy Information Administration at http://www.eia.doe.gov Net NOC Refinery Capacity - 000 BPD (country level) 0 0 0 0 0 Petro SA annual reports for the relevant year Non-NOC percentage of refinery capacity (%, country level) 100.0 100.0 100.0 100.0 100.0 CEE calculation. Total Revenues (local currency Bn) 3,473.3 6,446.4 7,508.6 8,951.8 11,018.8 Petro SA annual reports for the relevant year Royalties and production taxes (local currency MM) 15,530 14,236 Petro SA annual reports for the relevant year Income taxes (local currency MM) 436 114,868 88,966 664,310 Petro SA annual reports for the relevant year Dividends paid to government (local currency MM) 500,000 Petro SA annual reports for the relevant year Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 0.0 2.0 8.0 0.0 6.0 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey No survey No survey Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 75 75 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). Petro SA annual reports for the relevant year NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data 1 1 1 1 1 Petro SA annual reports for the relevant year 68 yes-1/no-0. Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 0.0 0.0 0.0 0.0 0.0 Petro SA annual reports for the relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) Not reported NOC refining capital expenditures as percentage of total capital expenditures (%) 0.0 0.0 0.0 0.0 0.0 Not reported NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. Not applicable NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 1 1 1 1 1 Petro SA annual reports for the relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Petro SA annual reports for the relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0.0 0.0 0.0 0.0 0.0 Petro SA annual reports for the relevant year Percentage of independent BOD members (%) 40.0 40.0 40.0 40.0 40.0 Petro SA annual reports for the relevant year Appointment authority for NOC chairman and chief executive officer 50 50 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity Petro SA annual reports for the relevant year Independence of NOC capital and budget processes 50 50 50 50 50 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). Petro SA annual reports for the relevant year NOC net cash flow after taxes and dividends (local currency Bn) 301.8 4,061.0 2,889.2 4,242.4 3,793.0 Petro SA annual reports for the relevant year NOC capital expenditures (local currency MM) 287.5 287.5 466.6 2,325.8 1,722.1 Petro SA annual reports for the relevant year NOC financial sustainability (%) 105.0 1412.3 619.2 182.4 220.3 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 50 50 50 50 50 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or 69 government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Petro SA annual reports for the relevant year NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Petro SA annual reports for the relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 70 12. Petrleos Brasileiro S.A. (Brazil) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF Company oil production MM Bbls E&P production (BOE) MM BOE 687.00 741.00 782.00 783.00 822.00 E&P production growth % 16.24 7.86 5.53 0.13 4.98 Total net additions proved oil reserves MM Bbls Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE Reserve additions (BOE) MM BOE 713.00 1,846.00 371.00 1,036.00 296.0 Reserves replacement rate % 103.78 249.12 47.44 132.31 36.01 Primary distillation capacity MBPD 1,985.00 2,027.00 1,986.00 2,167.00 19.00 Total refining throughput MBPD 1,704.00 1,726.00 1,746.00 1,950.30 17.27 Refinery utilization rate % 85.84 85.15 87.92 90.00 90.90 Assets $ MM 63,082.00 78,638.00 98,680.00 129,715.00 125,695.00 Output / total assets BOE/000$ 20.75 17.43 14.38 11.52 6.59 Employees # of people 52,037.00 53,904.00 62,266.00 68,931.00 74,240.00 Output / total employees BOE/000$ 25.15 25.43 22.79 21.69 11.16 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes $ MM 27,117.00 37,053.00 47,385.00 44,738.00 66,178.00 Direct expenditures on social/economic development programs $ MM 212.00 113.00 119.00 123.54 312.83 Total revenue $ MM 51,954.00 74,065.00 93,893.00 112,425.00 146,529.00 EBRTN $ MM 27,329.00 37,166.00 47,504.00 44,861.54 66,490.83 EBRTN / revenues % 52.60 50.18 50.59 39.90 45.38 EBRTN / total assets % 43.32 47.26 48.14 34.58 52.90 Total capital expenditures $ MM 8,371.00 10,436.00 15,246.00 22,529.00 29,874.00 net cash flow after taxes and dividends $ MM 6,370.00 13,051.00 17,933.00 18,631.00 23,453.00 NCF/CAPEX % 76.10 125.06 117.62 82.70 78.51 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 46,098.00 47,709.00 55,409.00 62,148.00 67,465.00 Total number of NOC non-local employees # of people 5,935.00 6,195.00 6,857.00 6,783.00 6,775.00 Share of nationals in NOC workforce % 88.59 88.51 88.99 90.16 90.87 NOC employment in native country (# people) # of people 46,098.00 47,738.00 55,409.00 62,148.00 67,465.00 NOC annual employment growth % 3.56 16.07 12.16 8.56 Country Labor Force # of people (000,000) 91,961.40 94,507.38 97,036.61 97,879.08 99,945.05 Country annual employment growth % 2.86 2.77 2.68 0.87 2.11 NOC - Country employment growth % points 0.79 13.39 11.29 6.44 NOC employment share of country workforce % 0.05 0.05 0.06 0.06 0.07 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM 30,835.00 43,125.00 58,214.00 76,758.00 108,120.00 Share of local content % 80.00 70.00 NOC noncommercial expenditure (national currency) MM NOC noncommercial expenditure $ MM 212.00 113.00 119.00 123.54 312.83 Noncommercial expenditure/Total expenditure % 0.69 0.26 0.20 0.16 0.29 Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 6,190.00 23.73 25.92 21.51 32.99 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM 1,440.00 1,440.00 1,440.00 1,440.00 Total NOC Revenues $ MM 51,954.00 74,065.00 93,893.00 112,425.00 146,529.00 Price Subsidies/Revenues % 1.94 1.53 1.28 0.98 NOC domestic petroleum products production MMBOE 623.00 633.00 619.41 655.18 652.26 Country oil consumption MMBOE 729.49 747.35 767.09 829.95 874.83 Domestic output use % 85.40 84.70 80.75 78.94 74.56 71 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 16.24 7.86 5.53 0.13 4.98 Reserves replacement rate (BOE, %) 103.78 249.12 47.44 132.31 36.01 Refinery utilization rate (%) 85.84 85.15 87.92 90.00 90.90 Output / total assets (BOE/'000$) 20.75 17.43 14.38 11.52 6.59 Output / total employees ('000 BOE) 25.15 25.43 22.79 21.69 11.16 Financial Performance EBRTN / revenues (%) 52.60 50.18 50.59 39.90 45.38 EBRTN / total assets (%) 43.32 47.26 48.14 34.58 52.90 NCF / CAPEX (%) 76.10 125.06 117.62 82.70 78.51 National Mission Performance Share of nationals in NOC workforce (%) 88.59 88.51 88.99 90.16 90.87 NOC Country employment growth (% points) 0.79 13.39 11.29 6.44 NOC employment share of country workforce (%) 0.06 0.06 0.07 Share of local content (%) 80.00 70.00 Noncommercial expenditures/total expenditures (%) 0.69 0.26 0.20 0.16 0.29 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) 1.94 1.53 1.28 0.98 Domestic output use (%) 85.40 84.70 80.75 78.94 74.56 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.51 0.46 0.28 0.45 0.26 E&P production growth 0.71 0.06 0.35 0.48 0.48 Reserves replacement rate 0.53 1.00 0.02 0.80 0.11 Refinery utilization rate 0.47 0.39 0.27 0.33 0.36 Output / total assets 0.42 0.43 0.42 0.35 0.19 Output / total employees 0.44 0.44 0.34 0.28 0.14 Financial Performance 0.57 0.49 0.48 0.38 0.48 EBRTN / revenues 0.62 0.52 0.50 0.37 0.47 EBRTN / total assets 0.70 0.53 0.55 0.44 0.79 NCF / CAPEX 0.39 0.41 0.40 0.31 0.19 National Mission Performance 0.37 0.28 0.43 0.35 0.31 Share of nationals in NOC workforce 0.86 0.86 0.86 0.88 0.89 NOC Country employment growth 0.35 0.83 0.36 0.30 NOC employment share of country workforce 0.00 0.00 0.04 0.05 0.06 Share of local content 0.78 0.75 Noncommercial expenditures/total expenditures 0.24 0.02 0.01 0.01 0.01 Noncore commercial activities net income/Total net income Price Subsidies/Revenues 0.06 0.08 0.03 0.04 Domestic output use 0.37 0.39 0.41 0.38 0.56 VCI 0.49 0.41 0.40 0.39 0.35 72 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 11,243 11,772 12,182 12,624 12,801 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 321 302 343 360 359 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 13,263 13,671 14,337 14,890 15,058 CEE calculation STATE CONTEXT WGI: Voice and Accountability 0.35 0.43 0.51 0.48 0.51 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -0.08 -0.08 -0.13 -0.17 -0.12 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 0.01 -0.09 -0.14 -0.13 -0.01 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 0.07 0.05 -0.04 -0.04 0.19 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.32 -0.44 -0.43 -0.43 -0.3 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control 0.06 -0.19 -0.17 -0.21 -0.03 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 6.0 6.0 6.0 6.0 6.0 CEE calculation based on following relationships: Oil revenues averaging 1.4% of GDP and government revenues averaging 23% of GDP. Sources:"Raising and Sharing Revenue" by Sergio Wulff Gobetti, Conference on Oil and Gas in Federal Systems, World Bank, March 2010; World Bank Development Indicators: http://data.worldbank.org/indicator Hydrocarbon Revenues as % of GDP 1.4 1.4 1.4 1.4 1.4 "Raising and Sharing Revenue" by Sergio Wulff Gobetti, Conference on Oil and Gas in Federal Systems, World Bank, March 2010. WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 413 420 427 392 372 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 5 8 10 10 13 Imports valued at nominal world oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 664 882 1,090 1,330 1,610 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 0.8 0.9 0.9 0.7 0.8 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 5.7 2.3 3.1 2.3 1.7 http://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=BRL Stabilization Mechanisms such as petroleum funds (yes-1/no-0) 0 0 0 0 0 http://www.anp.gov.br/ PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE Publicly disclosed national policy addressing hydrocarbon sector issues (yes-1/no-0) 1 1 1 1 1 Petrobras Form 20Fs for relevant year http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://data.worldbank.org/indicatorhttp://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=BRLhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=BRL73 Institutional structure 83 83 83 83 83 Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one entity (0). Petrobras Form 20Fs for relevant year Country oil production MM Barrels 562 626 660 668 693 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country gas production BCF 478 530 533 510 605 Petrobras Form 20Fs for relevant years. Both BP and OPEC appear to report marketed gas production which is significantly lower than Petrobras gas production. Country MMBOE production 644 717 752 756 797 CEE calculation NOC MMBOE Domestic Production 602 673 708 708 750 Petrobras Form 20Fs for relevant year Non-NOC percentage of oil and gas production (%) 6.6 6.2 5.8 6.3 5.9 CEE calculation Country Refinery Capacity - 000 BPD 1,915 1,928 1,929 1,935 1942 Greater of Petrobras Form 20Fs for relevant years or BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Net NOC Refinery Capacity - 000 BPD (country level) 1,915 1,928 1,929 1,935 1942 Petrobras Form 20Fs for relevant year Non-NOC percentage of refinery capacity (%, country level) 0.0 0.0 0.0 0.0 0.0 CEE calculation. Total Revenues (local currency MM) 51,954 74,065 93,893 112,425 146,529 Petrobras Form 20Fs for relevant year Royalties and production taxes (local currency MM) 4,052 5,831 7,477 8,381 9,255 Petrobras Form 20Fs for relevant year Income taxes (local currency MM) 2,231 4,441 5,691 5,888 9,259 Based on E&P income taxes paid in Brazil. Petrobras Form 20Fs for relevant year Dividends paid to government (local currency MM) 1,000 1,178 1,761 2,242 2,658 ONGC annual reports for relevant year Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 14.0 15.5 15.9 14.7 14.4 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 2.00 2.29 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 2.87 2.67 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 2.57 2.72 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 2.54 2.29 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 2.50 2.38 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 25 25 25 25 25 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not 74 ranked and not publicly measured (25); No public documentation of NOC objectives (0). Petrobras Form 20Fs for relevant year NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 95.0 95.0 95.0 95.0 95.0 CEE estimate based on Petrobras Form 20Fs for relevant year Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100. 100.0 100.0 100.0 100.0 CEE estimate based on Petrobras Form 20Fs for relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) 57.0 64.0 51.0 53.0 57.0 CEE estimate based on Petrobras Form 20Fs for relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) 16.0 17.0 13.0 21.0 25.0 CEE estimate based on Petrobras Form 20Fs for relevant year. Note: Refining capital expenditures are not separated but included in the Supply Segment which also includes oil logistics, petrochemicals, fertilizers, ethanol distribution. NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 94.0 102.0 103.0 90.0 94.0 CEE estimate based on Petrobras Form 20Fs for relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 8.0 6.0 7.0 9.0 8.0 CEE estimate based on Petrobras Form 20Fs for relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Petrobras Form 20Fs for relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 44.3 44.3 44.3 44.3 44.3 Petrobras Form 20Fs for relevant year Percentage of independent BOD members (%) 22.2 22.2 22.2 22.2 22.2 Petrobras Form 20Fs for relevant year Appointment authority for NOC chairman and chief executive officer 50 50 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity Petrobras Form 20Fs for relevant year Independence of NOC capital and budget processes 50 50 50 50 50 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). Petrobras Form 20Fs for relevant year NOC net cash flow after taxes and dividends (local currency MM) 6,370 13,051 17,933 18,631 23,453 Petrobras Form 20Fs for relevant year NOC capital expenditures (local currency MM) 8,371 10,436 15,246 22,529 29,874 Petrobras Form 20Fs for relevant year 75 NOC financial sustainability (%) 76.1 125.1 117.6 82.7 78.5 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Petrobras Form 20Fs for relevant year NOC upstream reserves transparency 100 100 100 100 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Petrobras Form 20Fs for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 76 13. Petro China Company Limited (China) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 1,068.24 1,339.55 1,588.00 1,627.00 1,864.00 Company oil production MM Bbls 819.98 825.41 831.14 839.00 871.00 E&P production (BOE) MM BOE 1,014.40 1,069.20 1,120.16 1,135.11 1,210.25 E&P production growth % 10.38 5.40 4.77 1.34 6.62 Total net additions proved oil reserves MM Bbls 823.00 864.00 913.00 927.00 386.00 Total net additions proved gas reserves BCF 4,531.00 4,218.00 6,934.00 5,269.00 5,942.00 Total net additions proved gas reserves MM BOE 824.64 767.68 1,261.99 958.96 1,081.44 Reserve additions (BOE) MM BOE 1,647.64 1,631.68 2,174.99 1,885.96 1,467.44 Reserves replacement rate % 162.43 152.61 194.17 166.15 121.25 Primary distillation capacity MBPD 2,183.00 2,337.00 2,564.00 2,580.10 2,580.10 Total refining throughput MBPD 1,939.00 2,061.00 2,151.00 2,256.50 2,300.00 Refinery utilization rate % 88.82 88.19 83.89 87.46 89.14 Assets $ MM 77,110.75 95,118.22 109,597.13 141,035.67 172,691.02 Output / total assets BOE/000$ 22.33 19.15 17.38 13.89 11.87 Employees # of people 424,175.00 439,290.00 446,290.00 466,502.00 477,780.00 Output / total employees BOE/000$ 4.06 4.15 4.27 4.20 4.29 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) MM 172,321.00 217,762.00 257,105.00 274,563.00 283,415.00 Direct expenditures on social/economic development programs (national currency) MM 96.56 219.89 351.25 Total revenue (national currency) Bn 397.35 553.35 690.51 836.35 1,071.10 EBRTN MM 172,321.00 217,762.00 257,201.56 274,782.89 283,766.25 EBRTN / revenues % 43.37 39.35 37.25 32.85 26.49 EBRTN / total assets % 26.99 27.99 29.49 25.70 23.75 Total capital expenditures (national currency) MM 95,045.00 121,561.00 158,578.00 194,182.00 243,752.00 net cash flow after taxes and dividends MM 88,024.0 169,557.0 196,765.7 205,586.0 179,526.2 NCF/CAPEX % 92.61 139.48 124.08 105.87 73.65 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00 NOC employment in native country (# people) # of people 419,933.25 434,897.10 441,827.10 461,836.98 473,002.20 NOC annual employment growth % 3.76 3.56 1.59 4.53 2.42 Country Labor Force # of people (000,000) 754,509.41 760,627.03 766,465.19 771,078.94 776,880.99 Country annual employment growth % 1.03 0.81 0.77 0.60 0.75 NOC - Country employment growth % points 2.73 2.75 0.83 3.93 1.67 NOC employment share of country workforce % 0.06 0.06 0.06 0.06 0.06 NOC local purchases goods and services $ MM 111,948.00 164,489.00 188,352.00 231,820.00 265,377.00 NOC total purchases goods and services $ MM 114,249.00 200,321.00 269,301.00 369,219.00 562,122.00 Share of local content % 97.99 82.11 69.94 62.79 47.21 NOC noncommercial expenditure (national currency) MM 96.56 219.89 351.25 NOC noncommercial expenditure $ MM 12.13 29.01 50.76 Noncommercial expenditure/Total expenditure % 0.04 0.06 0.06 Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 108,108.00 140,105.00 150,148.00 155,176.00 126,651.00 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM 2,392.51 2,421.76 3,659.22 2,728.02 11,991.10 Total NOC Revenues $ MM 47,989.61 67,646.70 86,770.63 110,328.07 154,798.90 Price Subsidies/Revenues % 4.99 3.58 4.22 2.47 7.75 NOC domestic petroleum products production MMBOE 551.93 580.73 617.04 655.22 675.60 Country oil consumption MMBOE 2,471.87 2,549.20 2,694.35 2,825.90 2,919.58 Domestic output use % 22.33 22.78 22.90 23.19 23.14 77 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 10.38 5.40 4.77 1.34 6.62 Reserves replacement rate (BOE, %) 162.43 152.61 194.17 166.15 121.25 Refinery utilization rate (%) 88.82 88.19 83.89 87.46 89.14 Output / total assets (BOE/'000$) 22.33 19.15 17.38 13.89 11.87 Output / total employees ('000 BOE) 4.06 4.15 4.27 4.20 4.29 Financial Performance EBRTN / revenues (%) 43.37 39.35 37.25 32.85 26.49 EBRTN / total assets (%) 26.99 27.99 29.49 25.70 23.75 NCF / CAPEX (%) 92.61 139.48 124.08 105.87 73.65 National Mission Performance Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00 NOC Country employment growth (% points) 2.73 2.75 0.83 3.93 1.67 NOC employment share of country workforce (%) 0.06 0.06 0.06 0.06 0.06 Share of local content (%) 97.99 82.11 69.94 62.79 47.21 Noncommercial expenditures/total expenditures (%) 0.04 0.06 0.06 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) 4.99 3.58 4.22 2.47 7.75 Domestic output use (%) 22.33 22.78 22.90 23.19 23.14 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.45 0.34 0.29 0.43 0.43 E&P production growth 0.54 0.06 0.34 0.51 0.53 Reserves replacement rate 0.71 0.68 0.35 0.89 0.91 Refinery utilization rate 0.51 0.43 0.20 0.28 0.33 Output / total assets 0.46 0.47 0.51 0.43 0.35 Output / total employees 0.05 0.06 0.05 0.04 0.05 Financial Performance 0.46 0.37 0.33 0.33 0.24 EBRTN / revenues 0.49 0.38 0.34 0.29 0.24 EBRTN / total assets 0.42 0.26 0.22 0.28 0.31 NCF / CAPEX 0.47 0.48 0.43 0.41 0.17 National Mission Performance 0.48 0.43 0.36 0.30 0.31 Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99 NOC Country employment growth 0.61 0.39 0.58 0.26 0.23 NOC employment share of country workforce 0.03 0.03 0.04 0.05 0.05 Share of local content 1.00 1.00 0.59 0.65 0.44 Noncommercial expenditures/total expenditures 0.00 0.00 0.00 Noncore commercial activities net income/Total net income Price Subsidies/Revenues 0.17 0.11 0.21 0.07 0.28 Domestic output use 0.08 0.08 0.11 0.09 0.15 VCI 0.46 0.38 0.33 0.35 0.33 78 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 15,531 15,587 15,615 15,493 14,817 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 1,448 1,535 1,684 2,255 2,455 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 24,640 25,240 26,204 29,678 30,261 CEE calculation STATE CONTEXT WGI: Voice and Accountability -1.45 -1.52 -1.68 -1.72 -1.72 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -0.14 -0.25 -0.31 -0.28 -0.32 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.05 -0.12 0.06 0.19 0.24 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.29 -0.25 -0.33 -0.24 -0.22 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.36 -0.41 -0.48 -0.45 -0.33 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.58 -0.67 -0.53 -0.61 -0.44 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues Hydrocarbon Revenues as % of GDP WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 109 161 126 76 77 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 2,780 2,904 3,379 3,670 3,857 US Energy Information Administration t http://www.eia.gov/countries/?fips=CH (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion -35 -51 -72 -91 -130 Exports valued at China Daiqing oil price and imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 1,930 2,240 2,660 3,380 4,333 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP -1.8 -2.3 -2.7 -2.7 -3.0 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product -2.4 -2.1 -1.6 -1.4 http://www.tradingeconomics.com/Economics/Government-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 http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://www.eia.gov/countries/?fips=CHhttp://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=CNYhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=CNYhttp://www.bjreview.com.cn/Energy/txt/2010-02/25/content_248380.htmhttp://www.bjreview.com.cn/Energy/txt/2010-02/25/content_248380.htm79 combined in one entity (0). "China's Energy Market," by Nicholas V. Chen, Pamir Law Group, 9/19/08, nchen@pamirlaw.com; "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 http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreview80 Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 1 1 1 1 1 % operated not disclosed in Form 20Fs but company appears to be a substantial operating entity Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100.0 100.0 100.0 100.0 100.0 Petrochina Form 20Fs for relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) 74.0 76.0 73.0 76.0 69.0 Petrochina Form 20Fs for relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) 19.0 14.0 12.0 14.0 8.0 Petrochina Form 20Fs for relevant year NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 115.8 109.7 105.9 102.0 102.7 Petrochina Form 20Fs for relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 4.0 3.0 4.0 3.0 5.0 Petrochina Form 20Fs for relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Petrochina Form 20Fs for relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 10.00 11.79 11.79 13.71 13.29 Petrochina Form 20Fs for relevant year Percentage of independent BOD members (%) 23.08 23.08 25.00 27.27 35.71 Petrochina Form 20Fs for relevant year Appointment authority for NOC chairman and chief executive officer 50 50 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity Petrochina Form 20Fs for relevant year Independence of NOC capital and budget processes 75 75 75 75 75 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). Petrochina Form 20Fs for relevant year NOC net cash flow after taxes and dividends (local currency MM) 88,024 169,557 196,766 205,586 179,526 Petrochina Form 20Fs for relevant year NOC capital expenditures (local currency MM) 95,045 121,561 158,578 194,182 243,752 Petrochina Form 20Fs for relevant year NOC financial sustainability (%) Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation 81 NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Petrochina Form 20Fs for relevant year NOC upstream reserves transparency 100 100 100 100 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Petrochina Form 20Fs for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 82 14. Petroliam Nasional Berhad (Malaysia) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF Company oil production MM Bbls E&P production (BOE) MM BOE 551.37 583.27 582.72 624.11 647.04 E&P production growth % -0.20 5.79 -0.09 7.10 3.67 Total net additions proved oil reserves MM Bbls Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE Reserve additions (BOE) MM BOE Reserves replacement rate % 260.00 70.00 170.00 180.00 90.00 Primary distillation capacity MBPD 356.50 356.50 367.30 367.30 376.30 Total refining throughput MBPD 320.85 310.16 334.24 337.92 323.62 Refinery utilization rate % 90.00 87.00 91.00 92.00 86.00 Assets $ MM 53,421.05 62,894.74 73,783.78 89,204.72 97,976.88 Output / total assets BOE/000$ 12.51 11.07 9.55 8.38 7.81 Employees # of people 30,634.00 33,944.00 34,985.00 36,027.00 39,236.00 Output / total employees BOE/000$ 21.82 20.52 20.14 20.75 19.50 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes $ MM 68.20 82.20 89.60 106.00 101.00 Direct expenditures on social/economic development programs $ MM Total revenue $ MM 137.00 167.00 184.00 223.00 264.00 EBRTN $ MM 68.20 82.20 89.60 106.00 101.00 EBRTN / revenues % 49.78 49.22 48.70 47.53 38.26 EBRTN / total assets % 33.60 34.39 32.82 35.93 29.79 Total capital expenditures (national currency) MM 17,400.00 18,700.00 21,600.00 37,600.00 44,000.00 Net cash flow after taxes and dividends MM 34,200.00 38,500.00 40,000.00 48,100.00 35,400.00 NCF/CAPEX % 196.55 205.88 185.19 127.93 80.45 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 82.00 80.00 NOC employment in native country (# people) # of people 29,542.14 31,388.80 NOC annual employment growth % 6.25 Country Labor Force # of people (000,000) 10,735.29 10,982.45 11,217.77 11,474.57 11,732.50 Country annual employment growth % 2.31 2.30 2.14 2.29 2.25 NOC - Country employment growth % points 4.00 NOC employment share of country workforce % 0.26 0.27 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM 46,200.00 60,830.00 74,690.00 83,006.00 97,790.00 Share of local content % NOC noncommercial expenditure (national currency) MM NOC noncommercial expenditure $ MM Noncommercial expenditure/Total expenditure % Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 6,923.00 10,672.00 12,719.00 137.41 188.49 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM 7.40 14.00 15.60 19.70 19.50 Total NOC Revenues $ MM 137.00 167.00 184.00 223.00 264.00 Price Subsidies/Revenues % 5.40 8.38 8.48 8.83 7.39 NOC domestic petroleum products production MMBOE 207.00 204.00 193.00 185.00 182.00 Country oil consumption MMBOE 185.00 191.00 195.00 197.00 196.00 Domestic output use % 111.89 106.81 98.97 93.91 92.86 83 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) -0.20 5.79 -0.09 7.10 3.67 Reserves replacement rate (BOE, %) 260.00 70.00 170.00 180.00 90.00 Refinery utilization rate (%) 90.00 87.00 91.00 92.00 86.00 Output / total assets (BOE/'000$) 12.51 11.07 9.55 8.38 7.81 Output / total employees ('000 BOE) 21.82 20.52 20.14 20.75 19.50 Financial Performance EBRTN / revenues (%) 49.78 49.22 48.70 47.53 38.26 EBRTN / total assets (%) 33.60 34.39 32.82 35.93 29.79 NCF / CAPEX (%) 196.55 205.88 185.19 127.93 80.45 National Mission Performance Share of nationals in NOC workforce (%) 82.00 80.00 NOC Country employment growth (% points) 4.00 NOC employment share of country workforce (%) 0.26 0.27 Share of local content (%) Noncommercial expenditures/total expenditures (%) Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) 5.40 8.38 8.48 8.83 7.39 Domestic output use (%) 111.89 106.81 98.97 93.91 92.86 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.48 0.30 0.29 0.49 0.36 E&P production growth 0.24 0.06 0.26 0.66 0.44 Reserves replacement rate 1.00 0.40 0.30 0.93 0.62 Refinery utilization rate 0.52 0.41 0.32 0.36 0.28 Output / total assets 0.24 0.26 0.27 0.25 0.23 Output / total employees 0.38 0.35 0.30 0.27 0.25 Financial Performance 0.70 0.56 0.50 0.48 0.33 EBRTN / revenues 0.58 0.51 0.48 0.47 0.38 EBRTN / total assets 0.53 0.35 0.28 0.47 0.41 NCF / CAPEX 1.00 0.82 0.75 0.50 0.19 National Mission Performance 0.34 0.38 0.47 0.42 0.44 Share of nationals in NOC workforce 0.78 0.75 NOC employment growth 0.26 NOC employment share of country workforce 0.21 0.23 Share of local content Noncommercial expenditures/total expenditures Noncore commercial activities net income/Total net income Price Subsidies/Revenues 0.18 0.27 0.42 0.24 0.26 Domestic output use 0.49 0.50 0.51 0.46 0.70 VCI 0.51 0.41 0.42 0.46 0.38 84 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 5,160 5,252 5,357 5,460 5,520 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 2,464 2,480 2,480 2,382 2,381 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 20,659 20,851 20,956 20,445 20,495 CEE calculation STATE CONTEXT WGI: Voice and Accountability -0.25 -0.17 -0.55 -0.57 -0.58 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability 0.29 0.47 0.34 0.23 0.13 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 0.99 0.99 1.06 1.11 1.13 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 0.48 0.52 0.51 0.53 0.27 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law 0.55 0.58 0.56 0.52 0.49 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control 0.42 0.32 0.36 0.23 0.14 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 20 29 34 35 44 Petronas website http://www.petronas.com.my/downloads/financialOperationalReview/financialOperationalReview2007-08.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/Government-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 http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.petronas.com.my/downloads/financialOperationalReview/financialOperationalReview2007-08.pdfhttp://www.petronas.com.my/downloads/financialOperationalReview/financialOperationalReview2007-08.pdfhttp://www.petronas.com.my/downloads/financialOperationalReview/financialOperationalReview2007-08.pdfhttp://data.worldbank.org/indicatorhttp://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=MYRhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=MYRhttp://www.kettha.gov.my/template01.asp?contentid=155http://www.kettha.gov.my/template01.asp?contentid=15585 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 http://www.petronas.com.my/investor_relationshttp://www.petronas.com.my/investor_relations86 specific NOC. If no data yes-1/no-0. Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100.0 100.0 100.0 100.0 100.0 Petronas annual reports for relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) 56.6 60.8 54.5 67.7 55.1 Petronas annual reports for relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) 6.0 6.0 7.1 10.6 20.5 Petronas annual reports for relevant year NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 201.5 189.0 194.8 184.6 190.1 Petronas annual reports for relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 35.0 35.0 34.0 37.0 40.0 Petronas annual reports for relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Petronas annual reports for relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0.0 0.0 0.0 0.0 0.0 Petronas annual reports for relevant year Percentage of independent BOD members (%) 0.0 0.0 0.0 0.0 11.11 "Petronas: A National Oil Company with an International Vision," by Dr. Fred R. von der Mehden with Al Troner, Presented at James A. Baker III Institute for Public Policy, Rice University, March 2007. Appointment authority for NOC chairman and chief executive officer 0 0 0 0 0 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity "Petronas: A National Oil Company with an International Vision," by Dr. Fred R. von der Mehden with Al Troner, Presented at James A. Baker III Institute for Public Policy, Rice University, March 2007. Independence of NOC capital and budget processes 50 50 50 50 50 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). Petronas annual reports for relevant year NOC net cash flow after taxes and dividends (local currency MM) NOC capital expenditures (local currency MM) 24,200 17,600 21,100 28,200 37,600 Petronas annual reports for relevant year NOC financial sustainability (%) Measured by net cash flow after taxes and dividends as percentage of capital expenditures % 87 NOC financial transparency 0 0 0 0 0 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Petronas annual reports for relevant year NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Petronas annual reports for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 88 15. PTT Public Company Limited (Thailand) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF Company oil production MM Bbls E&P production (BOE) MM BOE 49.17 56.04 61.81 65.63 80.04 E&P production growth % 25.54 13.98 10.30 6.17 21.97 Total net additions proved oil reserves MM Bbls Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE Reserve additions (BOE) MM BOE Reserves replacement rate % 98.00 Primary distillation capacity MBPD 382.00 383.00 393.00 400.00 427.00 Total refining throughput MBPD Refinery utilization rate % 91.00 90.20 91.00 92.00 86.00 Assets $ MM 12,492.46 16,191.52 19,882.58 26,534.24 25,291.57 Output / total assets BOE/000$ 3.94 3.46 3.11 2.47 3.16 Employees # of people 4,807.00 4,779.00 5,019.00 7,942.00 7,989.00 Output / total employees BOE/000$ 10.23 11.73 12.32 8.26 10.02 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 101.42 132.06 173.65 178.77 137.74 Direct expenditures on social/economic development programs (national currency) Bn Total revenue (national currency) Bn 644.67 926.27 1,226.83 1,508.13 2,000.82 EBRTN Bn 101.42 132.06 173.65 178.77 137.74 EBRTN / revenues % 15.73 14.26 14.15 11.85 6.88 EBRTN / total assets % 20.82 20.28 23.06 20.05 15.56 Total capital expenditures (national currency) Bn 55.78 100.89 94.02 99.09 109.61 net cash flow after taxes and dividends Bn 25.25 80.04 83.73 105.91 107.73 NCF/CAPEX % 45.27 79.33 89.05 106.88 98.29 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 4,703.00 4,611.00 4,796.00 Total number of NOC non-local employees # of people 104.00 168.00 223.00 Share of nationals in NOC workforce % 97.84 96.48 95.56 NOC employment in native country (# people) # of people 4,703.00 4,611.00 4,796.00 NOC annual employment growth % 16.61 -1.96 4.01 Country Labor Force # of people (000,000) 36,734.08 37,300.55 37,483.94 38,118.05 38,494.89 Country annual employment growth % 1.88 1.54 0.49 1.69 0.99 NOC - Country employment growth % points 14.73 -3.50 3.52 NOC employment share of country workforce % 0.01 0.01 0.01 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM Share of local content % NOC Noncommercial expenditures (national currency) MM NOC Noncommercial expenditures $ MM Noncommercial expenditure/Total expenditure % Net income from noncore commercial business activities (national currency) MM 10,385.00 11,549.00 25,360.00 24,669.00 30,268.00 Net income from total commercial activities (national currency) Bn 644.67 926.27 1,226.83 1,508.13 2,000.82 Net income noncore commercial activities/Net income % 1.61 1.25 2.07 1.64 1.51 Price subsidies provided by NOC $ MM 0.24 0.09 Total NOC Revenues $ MM 16,529.40 23,030.06 32,385.67 44,886.13 57,166.17 Price Subsidies/Revenues % 0.00 0.00 NOC domestic petroleum products production MMBOE 104.53 111.02 257.62 267.91 255.28 Country oil consumption MMBOE 300.69 311.16 304.43 300.29 291.09 Domestic output use % 34.76 35.68 84.62 89.22 87.70 89 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 25.54 13.98 10.30 6.17 21.97 Reserves replacement rate (BOE, %) 98.00 Refinery utilization rate (%) 91.00 90.20 91.00 92.00 86.00 Output / total assets (BOE/'000$) 3.94 3.46 3.11 2.47 3.16 Output / total employees ('000 BOE) 10.23 11.73 12.32 8.26 10.02 Financial Performance EBRTN / revenues (%) 15.73 14.26 14.15 11.85 6.88 EBRTN / total assets (%) 20.82 20.28 23.06 20.05 15.56 NCF / CAPEX (%) 45.27 79.33 89.05 106.88 98.29 National Mission Performance Share of nationals in NOC workforce (%) 97.84 96.48 95.56 NOC Country employment growth (% points) 14.73 -3.50 3.52 NOC employment share of country workforce (%) 0.01 0.01 0.01 Share of local content (%) Noncommercial expenditures/total expenditures (%) Noncore commercial activities net income/Total net income (%) 1.61 1.25 2.07 1.64 1.51 Price Subsidies/Revenues (%) 0.00 0.00 Domestic output use (%) 34.76 35.68 84.62 89.22 87.70 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.43 0.20 0.25 0.29 0.44 E&P production growth 0.98 0.08 0.43 0.63 1.00 Reserves replacement rate 0.69 Refinery utilization rate 0.54 0.46 0.32 0.36 0.28 Output / total assets 0.06 0.07 0.07 0.07 0.09 Output / total employees 0.17 0.19 0.18 0.10 0.13 Financial Performance 0.22 0.12 0.14 0.20 0.14 EBRTN / revenues 0.11 0.05 0.04 0.02 0.01 EBRTN / total assets 0.32 0.15 0.11 0.18 0.17 NCF / CAPEX 0.23 0.17 0.25 0.41 0.25 National Mission Performance 0.50 0.41 0.50 0.38 0.65 Share of nationals in NOC workforce 0.97 0.96 0.94 NOC Country employment growth 1.00 0.27 0.63 NOC employment share of country workforce 0.01 0.01 0.01 Share of local content Noncommercial expenditures/total expenditures Noncore commercial activities net income/Total net income 0.37 0.66 1.00 0.69 0.64 Price Subsidies/Revenues 0.00 0.00 Domestic output use 0.14 0.14 0.43 0.43 0.66 VCI 0.38 0.24 0.30 0.29 0.41 90 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 527 453 461 461 454 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 354 304 331 317 340 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 2,754 2,365 2,543 2,455 2,593 CEE calculation STATE CONTEXT WGI: Voice and Accountability 0.12 0.03 -0.55 -0.61 -0.56 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -0.40 -0.6 -0.89 -1.01 -1.19 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 0.22 0.36 0.25 0.17 0.11 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 0.24 0.41 0.23 0.11 0.26 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law 0.05 0.11 0 -0.07 -0.03 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.21 -0.13 -0.24 -0.41 -0.38 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues Hydrocarbon Revenues as % of GDP WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 861 827 828 801 811 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion -11 -15 -18 -20 -28 Thailand's oil imports valued at nominal annual oil price as reported in the 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 161 176 207 247 272 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP -7.0 -8.7 -8.9 -8.2 -10.3 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 1.5 1.1 2.6 2.0 14.0 http://www.tradingeconomics.com/Economics/Government-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 http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=THBhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=THBhttp://www.pttplc.com/en/91 Country gas production BCF 788 834 859 915 1016 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country MMBOE production 218 241 252 271 294 CEE calculation NOC MMBOE Domestic Production 49 56 62 66 80 PTT annual reports and presentations for the relevant year Non-NOC percentage of oil and gas production (%) 77.5 76.7 75.4 75.6 72.8 CEE calculation Country Refinery Capacity - 000 BPD 1,062 1,065 1,092 1,112 1,187 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Net NOC Refinery Capacity - 000 BPD (country level) 382 383 393 400 427 PTT annual reports and presentations for the relevant year Non-NOC percentage of refinery capacity (%, country level) 64.0 64.0 64.0 64.0 64.0 CEE calculation. Total Revenues (local currency Bn) 644.7 926.3 1,226.8 1,508.1 2,000.8 PTT annual reports and presentations for the relevant year Royalties and production taxes (local currency MM) 5,668 8,982 12,849 12,529 17,328 PTT annual reports and presentations for the relevant year Income taxes (local currency MM) 18,677 23,628 33,227 42,224 43,347 PTT annual reports and presentations for the relevant year Dividends paid to government (local currency MM) 32,586 9,818 20,746 15,337 18,330 PTT annual reports and presentations for the relevant year Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 8.8 4.6 5.4 4.6 3.9 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 1.71 2.00 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 2.57 2.25 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 2.60 1.75 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 2.75 2.6 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 2.80 2.25 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 75 75 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). PTT annual reports and presentations for the relevant year NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 1 1 1 1 1 % operated not disclosed in annual reports but company appears to be a substantial operating entity. http://www.bp.com/statisticalreview92 Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 1 1 1 1 1 PTT annual reports and presentations for the relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) 59.0 55.0 42.0 42.0 59.0 PTT annual reports and presentations for the relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) 1.0 0.0 0.0 0.0 0.0 PTT annual reports and presentations for the relevant year NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 1 1 1 1 1 PTT annual reports and presentations for the relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 30.0 36.0 76.0 75.0 69.0 PTT annual reports and presentations for the relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). PTT annual reports and presentations for the relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 31.94 31.94 32.13 32.13 32.87 PTT annual reports and presentations for the relevant year Percentage of independent BOD members (%) 13.33 7.14 6.67 6.67 6.67 PTT annual reports and presentations for the relevant year Appointment authority for NOC chairman and chief executive officer 50 50 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity PTT annual reports and presentations for the relevant year Independence of NOC capital and budget processes 50 50 50 50 50 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). PTT annual reports and presentations for the relevant year NOC net cash flow after taxes and dividends (local currency MM) 25,249 80,036 83,725 105,911 107,730 PTT annual reports and presentations for the relevant year NOC capital expenditures (local currency MM) 55,780 100,885 94,023 99,095 109,605 PTT annual reports and presentations for the relevant year NOC financial sustainability (%) 45.3 79.3 89.0 106.9 98.3 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation 93 NOC financial transparency 50 50 50 50 50 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) PTT annual reports and presentations for the relevant year NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). PTT annual reports and presentations for the relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 94 16. Qatar Petroleum (Qatar) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 1,382.31 1,616.28 1,789.20 2,230.33 2,716.66 Company oil production MM Bbls 275.68 279.55 293.06 308.53 307.62 E&P production (BOE) MM BOE 522.1 567.6 612.0 706.1 791.8 E&P production growth % 19.12 8.73 7.81 15.38 12.15 Total net additions proved oil reserves MM Bbls Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE Reserve additions (BOE) MM BOE Reserves replacement rate % Primary distillation capacity MBPD 150.00 150.00 150.00 150.00 150.00 Total refining throughput MBPD 136.50 136.50 136.50 137.00 137.00 Refinery utilization rate % 91.00 91.00 91.00 91.33 91.33 Assets $ MM 20,637.09 28,995.88 37,869.78 51,740.66 67,591.76 Output / total assets BOE/000$ 27.71 21.29 17.48 14.61 12.45 Employees # of people 11,516.03 11,466.67 9,942.11 9,947.37 10,708.33 Output / total employees BOE/000$ 49.66 53.85 66.56 76.01 78.62 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) MM 43,061.00 65,526.00 90,446.00 104,962.91 151,643.00 Direct expenditures on social/economic development programs (national currency) MM Total revenue (national currency) MM 53,506.00 75,826.00 100,684.00 117,430.00 168,488.00 EBRTN MM 43,061.00 65,526.00 90,446.00 104,962.91 151,643.00 EBRTN / revenues % 80.48 86.42 89.83 89.38 90.00 EBRTN / total assets % 57.32 62.08 65.61 55.73 61.63 Total capital expenditures (national currency) MM 13,714.00 20,008.00 32,990.00 47,037.00 36,791.00 net cash flow after taxes and dividends MM 12,520.00 18,515.00 13,610.00 41,063.00 36,863.00 NCF/CAPEX % 91.29 92.54 41.25 87.30 100.20 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 1,975.00 1,892.00 1,889.00 1,890.00 1,972.00 Total number of NOC non-local employees # of people 9,541.03 9,574.67 8,053.11 8,057.37 8,736.33 Share of nationals in NOC workforce % 17.2 16.5 21.0 19.0 19.0 NOC employment in native country (# people) # of people 11,400.87 11,352.00 9,842.68 9,847.89 10,601.25 NOC annual employment growth % 4.12 -0.43 -13.30 0.05 7.65 Country Labor Force # of people (000) 521,151.68 597,420.54 687,986.97 792,937.57 899,391.21 Country annual employment growth % 12.74 14.6 15.2 15.3 13.4 NOC - Country employment growth % points -8.63 -15.06 -28.46 -15.20 -5.78 NOC employment share of country workforce % 2.19 1.90 1.43 1.24 1.18 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM Share of local content % NOC noncommercial expenditure (national currency) MM NOC noncommercial expenditure $ MM Noncommercial expenditure/Total expenditure % Net income from non-core commercial business activities $ MM 135.77 74.42 102.69 165.00 196.15 Net income from total commercial activities $ MM 4,281.32 6,005.49 8,581.04 9,628.85 15,329.67 Net income noncore commercial activities/Net income % 3.17 1.24 1.20 1.71 1.28 Price subsidies provided by NOC $ MM Total NOC Revenues $ MM 14,699.45 20,831.32 27,660.44 32,260.99 46,287.91 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE 43.29 43.47 48.11 48.11 46.06 Country oil consumption MMBOE 19.41 22.71 27.35 32.77 37.97 Domestic output use % 223.00 191.38 175.92 146.79 121.31 95 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 19.12 8.73 7.81 15.38 12.15 Reserves replacement rate (BOE, %) Refinery utilization rate (%) 91.00 91.00 91.00 91.33 91.33 Output / total assets (BOE/'000$) 27.71 21.29 17.48 14.61 12.45 Output / total employees ('000 BOE) 49.66 53.85 66.56 76.01 78.62 Financial Performance EBRTN / revenues (%) 80.48 86.42 89.83 89.38 90.00 EBRTN / total assets (%) 57.32 62.08 65.61 55.73 61.63 NCF / CAPEX (%) 91.29 92.54 41.25 87.30 100.20 National Mission Performance Share of nationals in NOC workforce (%) 17.15 16.50 21.00 19.00 19.00 NOC Country employment growth (% points) -8.63 -15.06 -28.46 -15.20 -5.78 NOC employment share of country workforce (%) 2.19 1.90 1.43 1.24 1.18 Share of local content (%) Noncommercial expenditures/total expenditures (%) Noncore commercial activities net income/Total net income (%) 3.17 1.24 1.20 1.71 1.28 Price Subsidies/Revenues (%) Domestic output use (%) 223.00 191.38 175.92 146.79 121.31 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.70 0.50 0.56 0.67 0.61 E&P production growth 0.79 0.07 0.39 0.86 0.70 Reserves replacement rate Refinery utilization rate 0.54 0.48 0.32 0.35 0.36 Output / total assets 0.57 0.53 0.52 0.45 0.37 Output / total employees 0.90 0.94 1.01 1.02 1.02 Financial Performance 0.80 0.66 0.62 0.72 0.73 EBRTN / revenues 1.00 1.00 1.00 1.00 1.00 EBRTN / total assets 0.94 0.74 0.85 0.83 0.94 NCF / CAPEX 0.47 0.24 0.00 0.33 0.26 National Mission Performance 0.59 0.53 0.50 0.49 0.52 Share of nationals in NOC workforce 0.00 0.00 0.00 0.00 0.00 NOC Country employment growth 0.24 0.05 0.00 0.00 0.12 NOC employment share of country workforce 1.00 1.00 1.00 1.00 1.00 Share of local content Noncommercial expenditures/total expenditures Noncore commercial activities net income/Total net income 0.73 0.66 0.58 0.73 0.54 Price Subsidies/Revenues Domestic output use 1.00 0.93 0.92 0.73 0.92 VCI 0.70 0.56 0.56 0.63 0.62 96 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 26,865 27,910 27,436 27,323 28,833 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 25,361 25,636 25,543 25,465 25,365 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 186,386 189,161 188,100 187,497 186,379 CEE calculation STATE CONTEXT WGI: Voice and Accountability -0.47 -0.4 -0.59 -0.73 -0.77 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability 0.94 0.78 0.87 0.8 1.01 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 0.50 0.36 0.38 0.05 0.68 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 0.31 0.33 0.38 0.55 0.66 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law 0.66 0.81 0.85 0.86 0.86 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control 0.82 0.93 0.94 1.07 1.24 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 66.0 66.0 66.0 66.0 66.0 "Natural Resource Endowments, Governance and the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper, WP/08/170, July 2008; http://www.edc.ca/english/docs/gqatar_e.pdf Hydrocarbon Revenues as % of GDP 26.0 26.0 30.0 33.0 40.0 "Natural Resource Endowments, Governance and the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper, WP/08/170, July 2008; http://www.edc.ca/english/docs/gqatar_e.pdf WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 1 1 1 1 1 www.opec.org Country Crude Oil Exports -000 BPD 543 677 620 615 703 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 18 25 34 42 56 Qatar's values of exports as reported in the 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 32 43 57 71 92 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 56.3 58.1 59.6 59.2 60.9 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 9.8 9.8 9.8 9.8 10.0 http://www.edc.ca/english/docs/gqatar_e.pdf Stabilization Mechanisms such as petroleum funds (yes-1/no-0) 0 1 1 1 1 http://www.swfinstitute.org/ PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE Publicly disclosed national policy addressing hydrocarbon sector issues (yes-1/no-0) 1 1 1 1 1 The Industrial Strategy as articulated by the Ministry of Energy and Industry and related laws available at www.mei.gov.qa Institutional structure 66 66 66 66 66 Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one entity (0). Ministry of Energy and Industry, http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.edc.ca/english/docs/gqatar_e.pdfhttp://www.edc.ca/english/docs/gqatar_e.pdfhttp://www.opec.org/http://www.opec.org/http://data.worldbank.org/indicatorhttp://www.edc.ca/english/docs/gqatar_e.pdfhttp://www.mei.gov.qa/97 www.mei.gov.qa Country oil production MM Barrels 362 375 405 437 503 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country gas production BCF 1,380 1,617 1,791 2,232 2,698 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country MMBOE production 600 654 714 822 968 CEE calculation NOC MMBOE Domestic Production 348 383 419 488 577 US Energy Information Administration at www.eia.doe.gov/emeu/cabs/Qatar/pdf.pdf Non-NOC percentage of oil and gas production (%) 42.1 41.5 41.3 40.6 40.4 CEE calculation Country Refinery Capacity - 000 BPD 200 200 200 200 200 US Energy Information Administration at www.eia.doe.gov/emeu/cabs/Qatar/pdf.pdf Net NOC Refinery Capacity - 000 BPD (country level) 150 150 150 150 150 Qatar Petroleum annual reports for relevant years available at www.qp.com.qa Non-NOC percentage of refinery capacity (%, country level) 25.0 25.0 25.0 25.0 25.0 CEE calculation. Total Revenues (local currency MM) 53,506 75,826 100,684 117,430 168,488 Qatar Petroleum annual reports for relevant years Royalties and production taxes (local currency MM) 7,538 11,924 16,691 20,589 28,801 Qatar Petroleum annual reports for relevant years Income taxes (local currency MM) 19,168 30,773 41,434 47,077 63,571 Based on E&P income taxes paid in India. ONGC annual reports for relevant year Dividends paid to government (local currency MM) 7,272 9,781 19,806 5,265 21,697 Qatar Petroleum annual reports for relevant years available at www.qp.com.qa. Instead of dividends the company reports "Net change in account with Ministry of Finance" in cash flows from financing activities. Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 63.5 69.2 77.4 62.1 67.7 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 1.8 1.77 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 2.00 1.75 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 1.90 1.85 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 2.11 1.65 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 2.00 1.86 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 75 75 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). Qatar Petroleum annual reports for relevant years http://www.mei.gov.qa/http://www.bp.com/statisticalreviewhttp://www.bp.com/statisticalreviewhttp://www.eia.doe.gov/emeu/cabs/Qatar/pdf.pdfhttp://www.eia.doe.gov/emeu/cabs/Qatar/pdf.pdfhttp://www.qp.com.qa/98 NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 1 1 1 1 1 % operated not disclosed in annual reports but company appears to be a substantial operating entity Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100.0 100.0 100.0 100.0 100.0 Qatar Petroleum annual reports for relevant years NOC upstream capital expenditures as percentage of total capital expenditures (%) Not reported NOC refining capital expenditures as percentage of total capital expenditures (%) Not reported NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 280.0 284.0 356.0 413.0 503.0 Qatar Petroleum annual reports for relevant years NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 1 1 1 1 1 Qatar Petroleum annual reports for relevant years Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Qatar Petroleum annual reports for relevant years NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0.0 0.0 0.0 0.0 0.0 Qatar Petroleum annual reports for relevant years Percentage of independent BOD members (%) 0.0 0.0 0.0 0.0 0.0 Qatar Petroleum annual reports for relevant years Appointment authority for NOC chairman and chief executive officer 0 0 0 0 0 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity Qatar Petroleum annual reports for relevant years Independence of NOC capital and budget processes 50 50 50 50 50 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). Qatar Petroleum annual reports for relevant years NOC net cash flow after taxes and dividends (local currency MM) 12,520 18,515 13,610 41,063 36,863 Qatar Petroleum annual reports for relevant years NOC capital expenditures (local currency MM) 13,714 20,008 32,990 47,037 36,791 Qatar Petroleum annual reports for relevant years NOC financial sustainability (%) 91.3 92.5 41.3 87.3 100.2 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % 99 CEE Calculation NOC financial transparency 75 75 75 75 75 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Qatar Petroleum annual reports for relevant years NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Qatar Petroleum annual reports for relevant years Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 100 17. Oil Company Rosneft (Russia) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF Company oil production MM Bbls E&P production MM BOE 148.00 621.00 655.00 792.00 771.00 E&P production growth % 11.28 319.59 5.48 20.92 -2.65 Total net additions proved oil reserves MM Bbls Total net additions proved gas reserves BCF Total net additions proved gas reserves MM BOE Reserve additions MM BOE 330.00 -310.00 1,439.00 620.00 593.00 Reserves replacement rate % 222.97 -49.92 219.69 78.28 76.91 Primary distillation capacity MBPD 256.85 493.15 493.15 1,136.99 1,107.53 Total refining throughput MBPD 135.82 454.32 481.10 805.75 987.67 Refinery utilization rate % 52.88 92.13 97.56 70.87 89.18 Assets $ MM 26,012.00 30,016.00 46,790.00 74,805.00 77,513.00 Output / total assets BOE/000$ 7.60 26.21 17.75 14.52 14.60 Employees # of people 76,380.00 63,550.00 74,200.00 105,903.00 161,912.00 Output / total employees BOE/000$ 2.59 12.38 11.19 10.26 6.99 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes $ MM 2,923.00 17,068.00 23,734.00 34,643.00 49,821.00 Direct expenditures on social/economic development programs $ MM 125.00 91.00 279.00 557.00 689.00 Total revenue $ MM 5,262.00 23,863.00 33,099.00 49,216.00 68,991.00 EBRTN $ MM 3,048.00 17,159.00 24,013.00 35,200.00 50,510.00 EBRTN / revenues % 57.92 71.91 72.55 71.52 73.21 EBRTN / total assets % 11.72 57.17 51.32 47.06 65.16 Total capital expenditures $ MM 4,378.00 2,090.00 4,378.00 6,870.00 8,779.00 net cash flow after taxes and dividends $ MM 655.12 2,887.32 2,217.00 16,736.00 13,905.00 NCF/CAPEX % 14.96 138.15 50.64 243.61 158.39 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00 NOC employment in native country (# people) # of people 75,616.20 62,914.50 73,458.00 104,843.97 160,292.88 NOC annual employment growth % 8.21 -16.80 16.76 42.73 52.89 Country Labor Force # of people (000,000) 73,887.91 74,389.25 75,135.02 76,116.87 76,025.81 Country annual employment growth % 0.16 0.68 1.00 1.31 -0.12 NOC - Country employment growth % points 8.05 -17.48 15.76 41.42 53.01 NOC employment share of country workforce % 0.10 0.08 0.10 0.14 0.21 NOC local purchases goods and services $ MM 5,661.60 NOC total purchases goods and services $ MM 5,571.00 6,938.00 8,088.00 12,512.00 16,541.00 Share of local content % 70.00 NOC noncommercial expenditure (national currency) MM NOC noncommercial expenditure $ MM 125.00 91.00 279.00 557.00 689.00 Noncommercial expenditure/Total expenditure % 2.24 1.31 3.45 4.45 4.17 Net income from non-core commercial business activities $ MM 228.11 334.00 197.00 440.00 1,568.00 Net income $ MM 5,262.00 23,863.00 33,099.00 49,216.00 68,991.00 Net income noncore commercial activities/Net income % 4.34 1.40 0.60 0.89 2.27 Price subsidies provided by NOC $ MM Total NOC Revenues $ MM 189.62 829.15 1,257.08 2,004.73 2,348.23 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE 49.58 162.75 169.80 287.10 348.30 Country oil consumption MMBOE 955.78 949.52 988.79 987.67 1,020.77 Domestic output use % 5.19 17.14 17.17 29.07 34.12 101 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 11.28 319.59 5.48 20.92 -2.65 Reserves replacement rate (BOE, %) 222.97 -49.92 219.69 78.28 76.91 Refinery utilization rate (%) 52.88 92.13 97.56 70.87 89.18 Output / total assets (BOE/'000$) 7.60 26.21 17.75 14.52 14.60 Output / total employees ('000 BOE) 2.59 12.38 11.19 10.26 6.99 Financial Performance EBRTN / revenues (%) 57.92 71.91 72.55 71.52 73.21 EBRTN / total assets (%) 11.72 57.17 51.32 47.06 65.16 NCF / CAPEX (%) 14.96 138.15 50.64 243.61 158.39 National Mission Performance Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00 NOC- Country employment growth (% points) 8.05 -17.48 15.76 41.42 53.01 NOC employment share of country workforce (%) 0.10 0.08 0.10 0.14 0.21 Share of local content (%) 70.00 Noncommercial expenditures/total expenditures (%) 2.24 1.31 3.45 4.45 4.17 Noncore commercial activities net income/Total net income (%) 4.34 1.40 0.60 0.89 2.27 Price Subsidies/Revenues (%) Domestic output use (%) 5.19 17.14 17.17 29.07 34.12 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.32 0.47 0.38 0.44 0.32 E&P production growth 0.57 1.00 0.35 1.00 0.25 Reserves replacement rate 0.89 0.00 0.41 0.65 0.49 Refinery utilization rate 0.00 0.49 0.44 0.00 0.33 Output / total assets 0.14 0.66 0.52 0.45 0.43 Output / total employees 0.02 0.21 0.16 0.13 0.09 Financial Performance 0.31 0.65 0.48 0.82 0.75 EBRTN / revenues 0.69 0.81 0.78 0.77 0.80 EBRTN / total assets 0.16 0.67 0.60 0.67 1.00 NCF / CAPEX 0.08 0.47 0.05 1.00 0.46 National Mission Performance 0.60 0.32 0.43 0.42 0.60 Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99 NOC Country employment growth 0.78 0.00 0.87 0.76 1.00 NOC employment share of country workforce 0.05 0.04 0.07 0.11 0.18 Share of local content 0.59 Noncommercial expenditures/total expenditures 0.78 0.10 0.14 0.17 0.23 Noncore commercial activities net income/Total net income 1.00 0.74 0.29 0.38 0.96 Price Subsidies/Revenues Domestic output use 0.00 0.05 0.07 0.12 0.24 VCI 0.41 0.48 0.43 0.56 0.56 102 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 75,791 76,561 73,482 74,067 74,277 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 43,258 43,276 43,271 43,315 43,302 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 347,884 348,768 345,654 346,520 346,645 CEE calculation STATE CONTEXT WGI: Voice and Accountability -0.58 -0.65 -0.92 -0.98 -0.97 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -1.00 -0.94 -0.77 -0.72 -0.62 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.28 -0.36 -0.45 -0.41 -0.32 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.24 -0.33 -0.57 -0.44 -0.56 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.82 -0.87 -0.95 -0.95 -0.91 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.75 -0.74 -0.77 -0.91 -0.98 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 17.0 25.0 33.0 44.0 50.0 "Oil and Gas in the Russian Federation," by G. Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems, March, 2010; "Natural Resource Endowments, Governance, and the Domestic Revenue Effort," F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper wp/08/170, July 2008. Hydrocarbon Revenues as % of GDP 7.0 13.0 18.0 21.0 25.0 "Oil and Gas in the Russian Federation," by G. Kurlyandskaya, G. Pokatovich, M. Subbotin, Center for Fiscal Policy, Moscow, World Bank Conference on Oil and Gas in Federal Systems, March, 2010; "Natural Resource Endowments, Governance, and the Domestic Revenue Effort," F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper wp/08/170, July 2008. WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 4,822 5,335 5,524 5,864 5,646 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 40 40 44 62 48 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 60 98 123 147 194 Exports valued at Russia Urals oil price and imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 592 765 991 1,290 1,680 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 10.2 12.8 12.4 11.4 11.5 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 9.9 8.0 6.2 http://www.tradingeconomics.com/Economics/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 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 http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=RUBhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=RUB103 (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 http://www.rosneft.com/http://www.bp.com/statisticalreview104 (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 http://www.rosneft.com/http://www.rosneft.com/http://www.rosneft.com/http://www.rosneft.com/105 NOC financial sustainability (%) 15.0 138.1 50.6 243.6 158.4 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Rosneft financial statements for relevant years NOC upstream reserves transparency 100 100 100 100 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Rosneft financial statements for relevant years Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 106 18. China Petroleum & Chemical Corporation (China) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 207.00 222.00 257.00 283.00 293.00 Company oil production MM Bbls 274.00 279.00 285.00 292.00 297.00 E&P production MM BOE 311.67 319.40 331.77 343.51 350.33 E&P production growth % 2.88 2.48 3.87 3.54 1.99 Total net additions proved oil reserves MM Bbls 284.00 306.00 284.00 23.00 114.00 Total net additions proved gas reserves BCF 352.00 141.00 161.00 3,758.00 921.00 Total net additions proved gas reserves MM BOE 64.06 25.66 29.30 683.96 167.62 Reserve additions MM BOE 348.06 331.66 313.30 706.96 281.62 Reserves replacement rate % 111.68 103.84 94.43 205.81 80.39 Primary distillation capacity MBPD 3,189.04 3,289.73 3,676.03 3,799.32 4,222.60 Total refining throughput MBPD 2,730.82 2,874.66 3,131.51 3,318.49 3,468.49 Refinery utilization rate % 85.63 87.38 85.19 87.34 82.14 Assets $ MM 54,465.00 67,120.00 76,762.00 96,045.96 110,559.84 Output / total assets BOE/000$ 24.02 20.39 19.21 16.19 14.62 Employees # of people 389,451.00 364,528.00 340,886.00 334,377.00 358,304.00 Output / total employees BOE/000$ 3.36 3.75 4.33 4.65 4.51 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 80.035 86.29 113.41 124.17 85.50 Direct expenditures on social/economic development programs (national currency) MM 291.00 203.00 98.00 158.00 396.00 Total revenue (national currency) Bn 619.92 823.27 1,071.40 1,204.84 1,452.10 EBRTN Bn 80.33 86.49 113.50 124.33 85.89 EBRTN / revenues % 12.96 10.51 10.59 10.32 5.92 EBRTN / total assets % 16.68 15.87 18.58 16.97 11.19 Total capital expenditures (national currency) Bn 76.62 75.93 82.55 99.95 99.64 net cash flow after taxes and dividends Bn 45.98 42.33 50.00 103.37 55.98 NCF/CAPEX % 60.02 55.75 60.57 103.42 56.18 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 389,451.00 364,528.00 340,886.00 334,377.00 358,304.00 Total number of NOC non-local employees # of people Share of nationals in NOC workforce % 99.00 99.00 99.00 99.00 99.00 NOC employment in native country (# people) # of people 385,556.49 360,882.72 337,477.14 331,033.23 354,720.96 NOC annual employment growth % -3.73 -6.40 -6.49 -1.91 7.16 Country Labor Force # of people (000,000) 754,509.41 760,627.03 766,465.19 771,078.94 776,880.99 Country annual employment growth % 1.03 0.8 0.76 0.77 0.64 NOC - Country employment growth % points -4.77 -7.23 -7.24 -2.68 6.52 NOC employment share of country workforce % 0.05 0.05 0.04 0.04 0.05 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM 53,573.67 79,835.70 107,176.91 127,266.05 185,056.66 Share of local content % NOC noncommercial expenditure (national currency) MM NOC noncommercial expenditure $ MM 35.14 24.82 12.30 20.71 57.02 Noncommercial expenditure/Total expenditure % 0.07 0.03 0.01 0.02 0.03 Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 4,994.00 5,474.00 6,952.00 7,373.41 5,892.38 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM 2,422.00 3,659.00 7,793.00 14,687.04 Total NOC Revenues $ MM 19,915.00 823,272.00 1,071,402.0 1,204,843.0 1,452,101.0 Price Subsidies/Revenues % 0.29 0.34 0.65 1.01 NOC domestic petroleum products production MMBOE 1,048.11 1,118.51 1,307.63 1,366.80 1,417.50 Country oil consumption MMBOE 2,471.87 2,549.20 2,694.35 2,825.90 2,919.58 Domestic output use % 42.40 43.88 48.53 48.37 48.55 107 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 2.88 2.48 3.87 3.54 1.99% Reserves replacement rate (BOE, %) 111.68 103.84 94.43 205.81 80.39 Refinery utilization rate (%) 85.63 87.38 85.19 87.34 82.14 Output / total assets (BOE/'000$) 24.02 20.39 19.21 16.19 14.62 Output / total employees ('000 BOE) 3.36 3.75 4.33 4.65 4.51 Financial Performance EBRTN / revenues (%) 12.96 10.51 10.59 10.32 5.92 EBRTN / total assets (%) 16.68 15.87 18.58 16.97 11.19% NCF / CAPEX (%) 60.02 55.75 60.57 103.42 56.18 National Mission Performance Share of nationals in NOC workforce (%) 99.00 99.00 99.00 99.00 99.00 NOC Country employment growth (% points) -4.77 -7.23 -7.24 -2.68 6.52 NOC employment share of country workforce (%) 0.05 0.05 0.04 0.04 0.05 Share of local content (%) Noncommercial expenditures/total expenditures (%) 0.07 0.03 0.01 0.02 0.03 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) 0.29 0.34 0.65 1.01 Domestic output use (%) 42.40 43.88 48.53 48.37 48.55 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.38 0.31 0.26 0.48 0.32 E&P production growth 0.33 0.05 0.33 0.57 0.39 Reserves replacement rate 0.56 0.51 0.12 1.00 0.53 Refinery utilization rate 0.46 0.42 0.22 0.28 0.21 Output / total assets 0.49 0.51 0.57 0.50 0.43 Output / total employees 0.04 0.05 0.05 0.05 0.06 Financial Performance 0.21 0.05 0.05 0.17 0.07 EBRTN / revenues 0.07 0.00 0.00 0.00 0.00 EBRTN / total assets 0.25 0.09 0.03 0.12 0.10 NCF / CAPEX 0.31 0.05 0.10 0.40 0.11 National Mission Performance 0.31 0.23 0.28 0.24 0.29 Share of nationals in NOC workforce 0.99 0.99 0.99 0.99 0.99 NOC Country employment growth 0.36 0.20 0.42 0.17 0.30 NOC employment share of country workforce 0.02 0.02 0.03 0.03 0.04 Share of local content Noncommercial expenditures/total expenditures 0.02 0.00 0.00 0.00 0.00 Noncore commercial activities net income/Total net income Price Subsidies/Revenues 0.01 0.02 0.02 0.04 Domestic output use 0.17 0.18 0.24 0.22 0.35 VCI 0.30 0.20 0.20 0.30 0.23 108 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 15,531 15,587 15,615 15,493 14,817 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 1,448 1,535 1,684 2,255 2,455 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 24,640 25,240 26,204 29,678 30,261 CEE calculation STATE CONTEXT WGI: Voice and Accountability -1.45 -1.52 -1.68 -1.72 -1.72 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -0.14 -0.25 -0.31 -0.28 -0.32 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.05 -0.12 0.06 0.19 0.24 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.29 -0.25 -0.33 -0.24 -0.22 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.36 -0.41 -0.48 -0.45 -0.33 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.58 -0.67 -0.53 -0.61 -0.44 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues Hydrocarbon Revenues as % of GDP WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 109 161 126 76 77 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 2,780 2,904 3,379 3,670 3,857 US Energy Information Administration at http://www.eia.gov/countries/?fips=CH (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion -35 -51 -72 -91 -130 Exports valued at China Daiqing oil price and imports valued at nominal oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 1,930 2,240 2,660 3,380 4,333 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP -1.8 -2.3 -2.7 -2.7 -3.0 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product -2.4 -2.1 -1.6 -1.4 http://www.tradingeconomics.com/Economics/Government-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 http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.opec.org/http://www.eia.gov/countries/?fips=CHhttp://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=CNYhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=CNYhttp://www.bjreview.com.cn/Energy/txt/2010-02/25/content_248380.htmhttp://www.bjreview.com.cn/Energy/txt/2010-02/25/content_248380.htm109 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 http://www.bp.com/statisticalreview110 production operated by specific NOC. If no data yes-1/no-0. entity NOC upstream capital expenditures as percentage of total capital expenditures (%) 39.0 42.0 52.0 50.0 54.0 Sinopec Form 20Fs for relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) 20.0 25.0 27.0 21.0 12.0 Sinopec Form 20Fs for relevant year NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 22.0 23.0 20.0 19.0 18.0 Sinopec Form 20Fs for relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 0.0 0.0 0.0 0.0 0.0 Sinopec Form 20Fs for relevant year. International upstream assets appear to reside in parent company SGC as Sinopec does not report international assets in its Forms 20Fs. SGC upstream assets are in Russia, Iran and Canada. Joint ventures between the NOC and third parties 66 66 66 66 66 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Sinopec Form 20Fs for relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 23.0 23.9 23.5 23.5 24.2 Sinopec Form 20Fs for relevant year Percentage of independent BOD members (%) 28.57 23.08 27.27 27.73 27.73 Sinopec Form 20Fs for relevant year Appointment authority for NOC chairman and chief executive officer 50 50 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity Sinopec Form 20Fs for relevant year Independence of NOC capital and budget processes 75 75 75 75 75 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). Sinopec Form 20Fs for relevant year NOC net cash flow after taxes and dividends (local currency MM) 45,983 42,327 50,000 103,369 55,978 Sinopec Form 20Fs for relevant year NOC capital expenditures (local currency MM) 76,615 75,927 82,545 99,946 99,636 Sinopec Form 20Fs for relevant year NOC financial sustainability (%) 60.02 55.75 60.57 103.42 56.18 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); 111 No publicly available auditing (0) Sinopec Form 20Fs for relevant year NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Sinopec Form 20Fs for relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 112 19. Sonatrach S.A. (Algeria) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 5,081.76 5,364.08 5,293.50 5,399.37 5,434.66 Company oil production MM Bbls 623.05 630.38 623.05 630.38 615.72 E&P production (BOE) MM BOE 1,627.00 1,568.00 1,554.00 1,574.00 1,566.00 E&P production growth % 15.04 -3.63 -0.89 1.29 -0.51 Total net additions proved oil reserves MM Bbls 469.12 Total net additions proved gas reserves BCF 1,762.04 Total net additions proved gas reserves MM BOE 320.69 Reserve additions (BOE) MM BOE 789.81 Reserves replacement rate % 50.82 Primary distillation capacity MBPD 450.00 450.00 450.00 450.00 450.00 Total refining throughput MBPD 366.12 366.66 380.12 392.27 419.72 Refinery utilization rate % 81.36 81.48 84.47 87.17 93.27 Assets $ MM 37,087.50 43,105.30 52,217.23 66,648.47 81,010.42 Output / total assets BOE/000$ 47.47 39.48 32.42 25.76 21.22 Employees # of people 36,626.00 37,205.00 38,012.00 39,733.00 41,204.00 Output / total employees BOE/000$ 48.07 45.74 44.53 43.22 41.72 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 1,629.28 2,548.30 2,824.38 3,028.56 3,656.42 Direct expenditures on social/economic development programs (national currency) Bn Total revenue (national currency) Bn 2,450.77 3,535.76 4,222.75 4,346.63 5,218.45 EBRTN Bn 1,629.28 2,548.30 2,824.38 3,028.56 3,656.42 EBRTN / revenues % 66.48 72.07 66.88 69.68 70.07 EBRTN / total assets % 60.96 80.68 74.45 65.01 71.36 Total capital expenditures (national currency) Bn 263.81 297.35 349.91 450.77 597.68 net cash flow after taxes and dividends Bn 513.95 714.93 736.96 877.50 878.79 NCF/CAPEX % 194.82 240.43 210.62 194.67 147.04 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 36,626.00 37,205.00 38,012.00 39,733.00 41,204.00 Total number of NOC non-local employees # of people 3.00 1.00 0 1.00 1.00 Share of nationals in NOC workforce % 99.99 100.00 100.00 100.00 100.00 NOC employment in native country (# people) # of people 35,527.22 36,088.85 36,871.64 38,541.01 39,967.88 NOC annual employment growth % 1.59 1.58 2.17 4.53 3.70 Country Labor Force # of people (000,000) 10,529.48 11,178.72 11,971.25 12,136.54 12,307.00 Country annual employment growth % 11.58 6.17 7.09 1.38 1.40 NOC - Country employment growth % points -9.99 -4.59 -4.92 3.15 2.30 NOC employment share of country workforce % 0.34 0.32 0.31 0.32 0.32 NOC local purchases goods and services $ MM NOC total purchases goods and services $ MM Share of local content % NOC noncommercial expenditure (national currency) MM NOC noncommercial expenditures $ MM Noncommercial expenditure/Total expenditure % Net income from non-core commercial business activities (national currency) Bn 40.25 66.69 85.20 102.39 123.11 Net income from total commercial activities (national currency) Bn 2,450.77 3,535.76 4,222.75 4,346.63 5,218.45 Net income noncore commercial activities/Net income % 1.64 1.89 2.02 2.36 2.36 Price subsidies provided by NOC (national currency) Bn 369.49 585.72 767.15 806.78 1,087.46 Total NOC revenues (national currency) Bn 2,450.77 3,535.76 4,222.75 4,346.63 5,218.45 Price Subsidies/Revenues % 15.1 16.6 18.2 18.6 20.8 NOC domestic petroleum products production MMBOE 133.63 133.77 135.37 139.17 148.91 Country oil consumption MMBOE 87.75 91.74 94.82 105.29 113.50 Domestic output use % 152.28 145.81 142.76 132.18 131.19 113 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 15.04 -3.63 -0.89 1.29 -0.51 Reserves replacement rate (BOE, %) 50.82 Refinery utilization rate (%) 81.36 81.48 84.47 87.17 93.27 Output / total assets (BOE/'000$) 47.47 39.48 32.42 25.76 21.22 Output / total employees ('000 BOE) 48.07 45.74 44.53 43.22 41.72 Financial Performance EBRTN / revenues (%) 66.48 72.07 66.88 69.68 70.07 EBRTN / total assets (%) 60.96 80.68 74.45 65.01 71.36 NCF / CAPEX (%) 194.82 240.43 210.62 194.67 147.04 National Mission Performance Share of nationals in NOC workforce (%) 99.99 100.00 100.00 100.00 100.00 NOC Country employment growth (% points) -9.99 -4.59 -4.92 3.15 2.30 NOC employment share of country workforce (%) 0.34 0.32 0.31 0.32 0.32 Share of local content (%) Noncommercial expenditures/total expenditures (%) Noncore commercial activities net income/Total net income (%) 1.64 1.89 2.02 2.36 2.36 Price Subsidies/Revenues (%) 15.08 16.57 18.17 18.56 20.84 Domestic output use (%) 152.28 145.81 142.76 132.18 131.19 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.74 0.54 0.43 0.54 0.47 E&P production growth 0.67 0.03 0.25 0.51 0.31 Reserves replacement rate 0.02 Refinery utilization rate 0.40 0.33 0.21 0.28 0.40 Output / total assets 1.00 1.00 0.98 0.80 0.63 Output / total employees 0.87 0.80 0.67 0.57 0.54 Financial Performance 0.93 0.94 0.86 0.85 0.76 EBRTN / revenues 0.81 0.81 0.71 0.75 0.76 EBRTN / total assets 1.00 1.00 1.00 1.00 1.10 NCF / CAPEX 0.99 1.00 0.88 0.79 0.42 National Mission Performance 0.49 0.61 0.72 0.61 0.71 Share of nationals in NOC workforce 1.00 1.00 1.00 1.00 1.00 NOC Country employment growth 0.19 0.25 0.46 0.25 0.24 NOC employment share of country workforce 0.15 0.17 0.22 0.26 0.28 Share of local content Noncommercial expenditures/total expenditures Noncore commercial activities net income/Total net income 0.38 1.00 0.98 1.00 1.00 Price Subsidies/Revenues 0.51 0.53 0.90 0.50 0.75 Domestic output use 0.68 0.70 0.74 0.65 1.00 VCI 0.72 0.69 0.67 0.67 0.65 114 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 11,800 12,270 12,270 12,200 12,200 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 4,545 4,504 4,504 4,504 4,504 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 40,388 40,601 40,601 40,530 40,530 CEE calculation STATE CONTEXT WGI: Voice and Accountability -0.79 -0.74 -0.96 -1.00 -1.05 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability -1.43 -1.13 -1.02 -1.12 -1.15 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness -0.45 -0.35 -0.45 -0.53 -0.5 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality -0.59 -0.56 -0.66 -0.66 -0.79 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law -0.66 -0.7 -0.61 -0.68 -0.7 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control -0.60 -0.44 -0.43 -0.43 -0.44 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 65.0 65.0 66.0 66.0 66.0 "Natural Resource Endowments, Governance and the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper, WP/08/170, July 2008; http://www.swfinstitute.org/fund/algeria.php Hydrocarbon Revenues as % of GDP 22.0 22.0 30.0 33.0 33.0 "Natural Resource Endowments, Governance and the Domestic Revenue Effort," by F. Bornhorst, S. Gupta, J. Thornton, IMF Working Paper, WP/08/170, July 2008; http://www.swfinstitute.org/fund/algeria.php WTO membership (yes-1/no-0) over five years 0 0 0 0 0 www.wto.org OPEC membership (yes-1/no-0) over five years 1 1 1 1 1 www.opec.org Country Crude Oil Exports -000 BPD 893 970 947 1,254 841 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 32 46 53 59 77 Algeria's values of exports as reported in the 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 85 102 116 136 167 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 37.6 45.1 45.7 43.4 46.1 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 5.3 13.6 13.8 http://earthtrends.wri.org/searchable_db/index Stabilization Mechanisms such as petroleum funds (yes-1/no-0) 1 1 1 1 1 http://www.swfinstitute.org/ PETROLEUM SECTOR ORGANIZATION AND GOVERANANCE Publicly disclosed national policy addressing hydrocarbon sector issues (yes-1/no-0) 1 1 1 1 1 Sonatrach website at www.sonatrach-dz.com Institutional structure 33 66 66 66 66 Scoring: Independent NOC, Ministry and regulatory function (100); Regulatory function is performed by ministry (66); Regulatory function is performed by NOC (33); All three functions combined in one entity (0). "Algeria: The Algerian Hydrocarbons Regulations," by R. Palmer, C. Bensoussan, F. Elbar, S. Sayah, http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.swfinstitute.org/fund/algeria.phphttp://www.swfinstitute.org/fund/algeria.phphttp://www.opec.org/http://www.opec.org/http://data.worldbank.org/indicatorhttp://earthtrends.wri.org/searchable_db/indexhttp://www.sonatrach-dz.com/115 10/5/2009 available at http://www.mondaq.com/article.asp?articleid=86988 Country oil production MM Barrels 710 735 731 736 727 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country gas production BCF 6,495 6,813 6,884 6,989 7,095 Gross country gas production as reported in the 2008 OPEC Annual Statistical Bulletin at www.opec.org Country MMBOE production 1,830 1,910 1,918 1,941 1,950 CEE calculation NOC MMBOE Domestic Production 1,627 1,568 1,554 1,574 1,566 Sonatrach annual reports for relevant years available at www.sonatrach-dz.com Non-NOC percentage of oil and gas production (%) 11.1 17.9 19.0 18.9 19.7 CEE calculation Country Refinery Capacity - 000 BPD 450 450 450 450 450 US Energy Information Administration at www.eia.doe.gov/emeu/cabs/Algeria/pdf.pdf Net NOC Refinery Capacity - 000 BPD (country level) 450 450 450 450 450 Sonatrach annual reports for the relevant year Non-NOC percentage of refinery capacity (%, country level) 0.0 0.0 0.0 0.0 0.0 CEE calculation. Total Revenues (local currency Bn) 2,450.8 3,535.8 4,222.7 4,346.5 5,218.5 Sonatrach annual reports for the relevant year Royalties and production taxes (local currency MM) 431,040 608,640 6,065 10,545 2,251,161 Sonatrach annual reports for the relevant year Income taxes (local currency Bn) 1,048.1 1,584.0 1,825.0 1,847.3 260.9 Sonatrach annual reports for the relevant year Dividends paid to government (local currency MM) Royalties, production taxes, income taxes and dividends paid to government by NOC as percentage of total revenues (%) 60.4 62.0 43.4 42.7 48.1 CEE Calculation Effect of contract terms on investment decisions No survey No survey No survey 2.97 3.03 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of taxation regime on decision to invest No survey No survey No survey 2.67 2.50 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of cost of regulatory compliance on decision to invest No survey No survey No survey 2.83 2.50 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of regulatory uncertainty on decision to invest No survey No survey No survey 3.03 3.03 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 Effect of environmental regulations on decision to invest No survey No survey No survey 1.50 2.00 Sources: Fraser Institute Global Petroleum Survey 2007 and 2008 NOC objectives 75 75 75 75 75 Scoring: Priority ranked publicly disclosed objectives exist and are publicly measured (100); Objectives publicly disclosed but not ranked and are publicly measured (75); Objectives publicly disclosed and ranked but not publicly measured (50); Objectives publicly disclosed but not ranked and not publicly measured (25); No public documentation of NOC objectives (0). Sonatrach annual reports for the relevant year NOC STRATEGY AND BEHAVIOR Percentage of NOC domestic upstream production operated by specific NOC. If no data yes-1/no-0. 75.0 72.0 71.0 1 1 Sonatrach annual reports for the relevant year http://www.mondaq.com/article.asp?articleid=86988http://www.opec.org/http://www.sonatrach-dz.com/http://www.eia.doe.gov/emeu/cabs/Algeria/pdf.pdf116 Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100.0 100.0 100.0 100.0 100.0 Sonatrach annual reports for the relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) 75.0 75.4 74.6 70.1 66.9 Sonatrach annual reports for the relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) 6.0 6.1 4.2 14.2 18.9 Sonatrach annual reports for the relevant year NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 262.0 281.0 286.0 286.0 277.0 Sonatrach annual reports for the relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 1 1 1 1 1 Sonatrach annual reports for the relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). Sonatrach annual reports for the relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 0.0 0.0 0.0 0.0 0.0 Sonatrach annual reports for the relevant year Percentage of independent BOD members (%) 0.0 0.0 0.0 0.0 0.0 Sonatrach annual reports for the relevant year Appointment authority for NOC chairman and chief executive officer 0 0 0 0 0 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity Sonatrach annual reports for the relevant year Independence of NOC capital and budget processes 25 25 25 25 25 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). Sonatrach annual reports for the relevant year NOC net cash flow after taxes and dividends (local currency MM) 513,947 714,931 736,961 877,503 878,792 Sonatrach annual reports for the relevant year NOC capital expenditures (local currency MM) 263,811 297,354 349,906 450,768 597,675 Sonatrach annual reports for the relevant year NOC financial sustainability (%) 194.8 240.4 210.6 194.7 147.0 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 50 50 50 50 50 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) Sonatrach annual reports for the relevant year 117 NOC upstream reserves transparency 0 0 0 0 0 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). Sonatrach annual reports for the relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. 118 20. StatoilHydro ASA. (Norway) (a) Value creation index components Operational Performance unit 2004 2005 2006 2007 2008 Company gas production BCF 781.00 953.00 1,335.00 1,352.00 1,468.60 Company oil production MM Bbls 265.00 257.00 385.00 391.00 386.48 E&P production (BOE) MM BOE 402.00 427.00 624.00 632.00 642.00 E&P production growth % 1.02 6.22 46.14 1.28 1.58 Total net additions proved oil reserves MM Bbls 151.00 286.00 197.00 357.00 189.00 Total net additions proved gas reserves BCF 338.00 827.00 1,045.00 976.00 177.00 Total net additions proved gas reserves MM BOE 61.52 150.51 190.19 177.63 32.21 Reserve additions (BOE) MM BOE 211.00 427.00 386.00 540.00 220.00 Reserves replacement rate % 52.49 100.00 61.86 85.44 34.27 Primary distillation capacity MBPD 337.00 337.00 337.00 337.00 337.00 Total refining throughput MBPD 317.00 320.00 320.00 313.00 302.00 Refinery utilization rate % 94.07 94.96 94.96 92.88 89.61 Assets $ MM 41,057.83 42,875.22 73,294.41 89,319.41 82,631.86 Output / total assets BOE/000$ 12.61 12.68 10.11 8.35 9.10 Employees # of people 23,899.00 25,644.00 25,408.00 29,500.00 29,496.00 Output / total employees BOE/000$ 21.66 21.21 29.16 25.30 25.50 Financial Performance Unit 2004 2005 2006 2007 2008 Earnings before interest & taxes (national currency) Bn 65.11 95.10 166.16 137.20 198.83 Direct expenditures on social/economic development programs (national currency) MM 43.79 54.00 67.50 241.00 233.00 Total revenue (national currency) Bn 306.22 393.30 521.48 522.80 656.02 EBRTN Bn 65.15 95.15 166.23 137.45 199.07 EBRTN / revenues % 21.28 24.19 31.88 26.29 30.34 EBRTN / total assets % 26.14 32.93 36.23 28.44 34.42 Total capital expenditures (national currency) Bn 32.55 45.79 49.37 68.35 78.47 net cash flow after taxes and dividends Bn 32.42 44.77 70.84 68.23 75.45 NCF/CAPEX % 99.60 97.78 143.50 99.82 96.15 National Mission Performance Unit 2004 2005 2006 2007 2008 Total number of NOC local employees # of people 12,710.00 12,214.00 13,987.00 18,102.00 18,001.00 Total number of NOC non-local employees # of people 11,189.00 13,430.00 11,421.00 11,398.00 11,495.00 Share of nationals in NOC workforce % 53.18 47.63 55.05 61.36 61.03 NOC employment in native country (# people) # of people 12,710.00 12,214.00 13,987.00 18,102.00 18,001.00 NOC annual employment growth % 7.39 -3.90 14.52 29.42 -0.56 Country Labor Force # of people (000,000) 2,446.25 2,455.90 2,491.62 2,556.88 2,636.96 Country annual employment growth % 0.43 0.39 1.45 2.62 3.13 NOC - Country employment growth % points 6.96 -4.30 13.06 26.80 -3.69 NOC employment share of country workforce % 0.98 1.04 1.02 1.15 1.12 NOC local purchases goods and services $ MM 7,397.03 6,824.93 8,450.48 17,285.40 NOC total purchases goods and services $ MM 10,345.96 9,317.51 10,814.70 20,020.89 Share of local content % 71.50 73.25 78.14 86.34 NOC noncommercial expenditure (national currency) MM 43.79 54.00 67.50 241.00 233.00 NOC noncommercial expenditure $ MM 7.21 8.01 10.78 44.55 33.29 Noncommercial expenditure/Total expenditure % 0.07 0.09 0.10 0.22 Net income from non-core commercial business activities $ MM Net income from total commercial activities $ MM 4,104.78 4,559.35 8,282.27 8,251.57 6,181.43 Net income noncore commercial activities/Net income % Price subsidies provided by NOC $ MM Total NOC Revenues $ MM 50,447.78 58,352.82 83,303.83 96,635.30 93,717.14 Price Subsidies/Revenues % NOC domestic petroleum products production MMBOE 60.31 71.28 71.61 69.10 64.61 Country oil consumption MMBOE 76.66 77.32 79.26 81.17 76.78 Domestic output use % 78.68 92.19 90.34 85.13 84.15 119 (b) Value creation index 2004 2005 2006 2007 2008 Operational Performance E&P production growth (%) 1.02 6.22 46.14 1.28 1.58 Reserves replacement rate (BOE, %) 52.49 100.00 61.86 85.44 34.27 Refinery utilization rate (%) 94.07 94.96 94.96 92.88 89.61 Output / total assets (BOE/'000$) 12.61 12.68 10.11 8.35 9.10 Output / total employees ('000 BOE) 21.66 21.21 29.16 25.30 25.50 Financial Performance EBRTN / revenues (%) 21.28 24.19 31.88 26.29 30.34 EBRTN / total assets (%) 26.14 32.93 36.23 28.44 34.42 NCF / CAPEX (%) 99.60 97.78 143.50 99.82 96.15 National Mission Performance Share of nationals in NOC workforce (%) 53.18 47.63 55.05 61.36 61.03 NOC - Country employment growth (% points) 6.96 -4.30 13.06 26.80 -3.69 NOC employment share of country workforce (%) 0.98 1.04 1.02 1.15 1.12 Share of local content (%) 71.50 73.25 78.14 86.34 Noncommercial expenditures/total expenditures (%) 0.07 0.09 0.10 0.22 Noncore commercial activities net income/Total net income (%) Price Subsidies/Revenues (%) Domestic output use (%) 78.68 92.19 90.34 85.13 84.15 (c) Normalized value creation index 2004 2005 2006 2007 2008 Operational Performance 0.37 0.35 0.43 0.43 0.28 E&P production growth 0.27 0.06 1.00 0.51 0.38 Reserves replacement rate 0.38 0.50 0.05 0.67 0.09 Refinery utilization rate 0.58 0.54 0.39 0.38 0.34 Output / total assets 0.25 0.31 0.29 0.25 0.27 Output / total employees 0.38 0.36 0.44 0.33 0.33 Financial Performance 0.37 0.26 0.38 0.31 0.34 EBRTN / revenues 0.19 0.18 0.27 0.20 0.29 EBRTN / total assets 0.41 0.33 0.34 0.33 0.49 NCF / CAPEX 0.51 0.27 0.53 0.38 0.25 National Mission Performance 0.36 0.41 0.53 0.57 0.56 Share of nationals in NOC workforce 0.43 0.37 0.43 0.52 0.52 NOC Country employment growth 0.75 0.26 0.82 0.57 0.15 NOC employment share of country workforce 0.45 0.55 0.71 0.93 0.95 Share of local content 0.17 0.83 0.75 0.98 Noncommercial expenditures/total expenditures 0.02 0.01 0.00 0.01 Noncore commercial activities net income/Total net income Price Subsidies/Revenues Domestic output use 0.34 0.43 0.46 0.41 0.63 VCI 0.37 0.34 0.45 0.43 0.39 120 (d) Value drivers 2004 2005 2006 2007 2008 Source GEOLOGY Country specific resource endowment oil MMBBL 9,722 9,688 8,546 8,168 7,491 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment gas BCM 2,386 2,358 2,302 2,313 2,215 BP Statistical Review of World Energy June 2009 available at http://www.bp.com/statisticalreview Country specific resource endowment MMBOE 24,730 24,520 23,025 22,717 21,423 CEE calculation STATE CONTEXT WGI: Voice and Accountability 1.73 1.65 1.49 1.53 1.53 http://info.worldbank.org/governance/wgi/index.asp WGI: Political Stability 1.36 1.29 1.18 1.25 1.33 http://info.worldbank.org/governance/wgi/index.asp WGI: Government Effectiveness 2.16 1.99 2.13 2.14 1.95 http://info.worldbank.org/governance/wgi/index.asp WGI: Regulatory Quality 1.54 1.47 1.35 1.44 1.34 http://info.worldbank.org/governance/wgi/index.asp WGI: Rule of Law 1.98 1.92 2.00 1.98 1.96 http://info.worldbank.org/governance/wgi/index.asp WGI: Corruption Control 1.95 1.96 2.07 2.05 1.88 http://info.worldbank.org/governance/wgi/index.asp Hydrocarbon Revenues as % of Total Government Revenues 28.0 33.0 36.0 31.0 34.0 Facts 2009, 2008, 2007, 2006 and 2005 published by the Norwegian Ministry of Petroleum and Energy and the Norwegian Petroleum Directorate available at www.npd.no/en/Publications/Facts Hydrocarbon Revenues as % of GDP 21.0 25.0 25.0 24.0 25.0 Facts 2009, 2008, 2007, 2006 and 2005 published by the Norwegian Ministry of Petroleum and Energy and the Norwegian Petroleum Directorate available at www.npd.no/en/Publications/Facts WTO membership (yes-1/no-0) over five years 1 1 1 1 1 www.wto.org OPEC membership (yes-1/no-0) over five years 0 0 0 0 0 www.opec.org Country Crude Oil Exports -000 BPD 2,731 2,377 2,210 2,012 1,702 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Crude Oil Imports-000 BPD 2009 OPEC Annual Statistical Bulletin at www.opec.org (Country Revenues Oil Exports)-(Costs Oil Imports) US $ Billion 38 47 53 54 62 Exports valued at Ekofisk oil price as reported in 2008 OPEC Annual Statistical Bulletin at www.opec.org Country Gross Domestic Product US $ Billion 259 302 337 388 450 World Bank Development Indicators: http://data.worldbank.org/indicator Country Net Revenues (Costs) of Oil Exports (Imports) as % of GDP 14.7 15.7 15.6 13.9 13.7 CEE calculation Government Budget Surplus/Deficit as % of Gross Domestic Product 8.3 11.7 15.2 18.5 18.0 http://www.tradingeconomics.com/Economics/Government-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). http://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://info.worldbank.org/governance/wgi/index.asphttp://www.npd.no/en/Publications/Factshttp://www.npd.no/en/Publications/Factshttp://www.opec.org/http://www.opec.org/http://data.worldbank.org/indicatorhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=NOKhttp://www.tradingeconomics.com/Economics/Government-Budget.aspx?Symbol=NOKhttp://www.npd.no/en/Publications/Facts121 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 http://www.bp.com/statisticalreviewhttp://www.npd.no/en/Publications/Facts122 by specific NOC. If no data yes-1/no-0. Percentage of NOC domestic refining production operated by specific NOC. If no data yes-1/no-0. 100.0 100.0 100.0 100.0 100.0 StatoilHydro Form 20Fs for the relevant year NOC upstream capital expenditures as percentage of total capital expenditures (%) 83.7 89.1 90.4 89.7 87.6 StatoilHydro Form 20Fs for the relevant year NOC refining capital expenditures as percentage of total capital expenditures (%) 9.3 4.3 3.9 6.4 8.9 StatoilHydro Form 20Fs for the relevant year NOC upstream oil equity production as percentage of total NOC refining throughput (%). If no data, yes/no. 310.3 307.7 329.1 343.0 350.9 StatoilHydro Form 20Fs for the relevant year NOC international revenues as percentage of total NOC revenues (%). If no data yes-1/no-0. 3.3 5.1 6.3 8.0 7.0 StatoilHydro Form 20Fs for the relevant year Joint ventures between the NOC and third parties 100 100 100 100 100 Scoring: NOC partnerships/JVs exist domestically and internationally (100); NOC partnerships exist domestically but not internationally (66); NOC partnerships exist internationally but not domestically (33); NOC partnerships, JVs, alliances do not exist (0). StatoilHydro Form 20Fs for the relevant year NOC CORPORATE GOVERNANCE Percentage of non-government ownership of specific NOC (%) 29.90 29.90 29.04 37.50 29.17 StatoilHydro Form 20Fs for the relevant year Percentage of independent BOD members (%) 66.0 66.0 70.0 70.0 70.0 StatoilHydro Form 20Fs for the relevant year Appointment authority for NOC chairman and chief executive officer 50 50 50 50 50 Scoring: (100)-The government has no participation in deciding who will fill the positions of Chairman/CEO; (50)-The government through its control of required voting shares can influence, directly or indirectly, the appointments of Chairman/CEO and (0) The Chairman and/or CEO is a direct appointee of the government entity StatoilHydro Form 20Fs for the relevant year Independence of NOC capital and budget processes 75 75 75 75 75 Scoring: No governmental approval of NOC budget required (100); No governmental approval of NOC budget required but certain capital expenditures require state approval (75);NOC budget is proposed to and approved by one central government entity (50); NOC budget is proposed to and approved by multiple central government entities (25); NOC budget is part of the national budget (0). StatoilHydro Form 20Fs for the relevant year NOC net cash flow after taxes and dividends (local currency MM) 32,417 44,769 70,837 68,231 75,451 StatoilHydro Form 20Fs for the relevant year NOC capital expenditures (local currency MM) 32,548 45,785 49,365 68,354 78,470 StatoilHydro Form 20Fs for the relevant year NOC financial sustainability (%) 99.6 97.8 143.5 99.8 96.2 Measured by net cash flow after taxes and dividends as percentage of capital expenditures % CEE Calculation NOC financial transparency 100 100 100 100 100 Scoring: NOC financial statement auditing performed by independent international auditor and files reports with international exchange (100); FS auditing performed and publicly disclosed by independent international auditor (75); FS auditing performed and publicly disclosed by independent domestic or government auditor (50) ; FS auditing performed internally by N OC and publicly disclosed (25); No publicly available auditing (0) StatoilHydro Form 20Fs for the relevant year 123 NOC upstream reserves transparency 100 100 100 100 100 Scoring: NOC oil & gas reserves auditing performed by independent international firm and files reports with international exchange (100); reserves auditing performed and publicly disclosed by independent international firm (75); reserves auditing performed and publicly disclosed by independent domestic firm (50); reserves auditing performed internally and publicly disclosed (25); No publicly available reserves auditing (0). StatoilHydro Form 20Fs for the relevant year Note: Non-shaded areas indicate data used in the exploratory statistical analysis presented in National Oil Companies and Value Creation, volume I, chapter 4. The World Bank1818 H Street, N.W.Washington, D.C. 20433USAwww.worldbank.org/ogmc (or /oil or /gas or /mining)

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