Overall figures for offset agreements in 1997

Overall figures for offset agreements in 1997
(All figures rounded to the nearest million NOK at 1997 prices. Amounts are summed before rounding.)

Offset agreements concluded in 1997
Company	Contract value	Amount of offset
Daimler Benz AG	307	307
DCN International	841	841
GIAT Industries	259	259
Rheinmetal W & M GmbH	305	305
Simmel Difesa SpA	49	49
Saab Training System AB	59	59

TOTAL	1 800	1 800

Table

Chart showing contract values and amount of offset agreed for the seven companies with which offset agreements were concluded in 1997.

OVERALL FIGURES A
The largest offset agreement concluded in 1997 related to the purchase of command and weapon control systems for the HAUK Class MTBs from DCN International. The sum involved, NOK 840 million, represents almost half of the total of NOK 1.8 billion for which offset agreements were concluded in 1997.

All these agreements involved offset transactions corresponding to at least 100% of the contract sum.

Offset agreements concluded during the years 1991-1997
Year	Number of agreements	Contract sum	Amount of offset
1991	4	420	339
1992	4	949	568
1993	5	1325	1325
1994	5	1732	2003
1995	8	1811	1827
1996	13	3355	3690
1997	6	1820	1820

Table

Chart summarising all the offset agreements concluded for defence contracts placed with foreign suppliers during the years 1991-1997 together with the total contract values and the amount of offset agreed.

OVERALL FIGURES B
For 1991 and 1992 the amount of offset agreed falls slightly short of the value of the procurement contracts themselves while for the period 1994-1997 the amount of offset equals or exceeds the total contract sum.

Thus, viewed as a whole, the offset agreements concluded can benefit Norwegian industry at least as much as the procurement contracts themselves benefit the foreign suppliers. At the same time, not all defence contracts placed with foreign suppliers involve offset commitments (this applies largely to contracts worth less than NOK 50 million).

The size of procurement contracts placed can vary considerably from year to year. Offset agreements also often run for several years. The annual figures for the value of offset transactions can thus fluctuate widely.

The value of offset purchases from Norwegian industry over the period 1991-1996
Year	Approved offset
1991	1460
1992	1364
1993	1424
1994	1498
1995	772
1996	1929

Table

The chart shows a comparative summary of the amount of offset commitment realised and approved in recent years.

OVERALL FIGURES C
As a rule, an offset agreement is a long-term arrangement which is subsequently realised over a number of years. The offset commitments realised in 1996 relate partly to agreements concluded as early as 1989-90.

The value of the offset commitments realised in 1996 amounted to NOK 1.9 billion. Compared to the total figure for offset at the end of 1995, this represents more than a doubling of the offset commitment.

Total offset commitments (Figures in NOK millions)
Description	Amount
Total offset commitments for current contracts at 31 December 1997	15 493
Total residual commitments for current contracts outstanding at 31 December 1997	10 179
Offset commitments for current contracts realised at 31 December 1997	5 313

Table

OVERALL FIGURES D
The table summarise the outstanding offset commitments and shows that, for all current offset agreements, the outstanding commitments amount to approximately NOK 10 billion. The fact that these commitments have not yet been realised is by no means any indication that they are not being met. Foreign suppliers are by and large very punctual in this respect. Several of the offset agreements concluded in the years up to and including 1997 are not due to complete before 2005.

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