Norway delivers fourth EITI report – shows complete control over revenue streams

The multi stakeholder group for implementation of the Extractive Industries Transparency Initiative (EITI) in Norway has delivered its fourth report. The report shows what the oil companies have reported paying in tax and royalties to the State in 2011, as well as the receipts reported by the authorities from the individual companies in the same year. The report confirms concordance between reported payments and reported revenues.  The payments amounted to NOK 338 billion.

EITI's objective is to ensure that a country's natural resources benefit the entire population, and contribute to growth and prosperity. EITI is organised through an international board and an international secretariat. The secretariat is located in Oslo. To achieve EITI-approved status, countries must endorse a set of principles and fulfil specific criteria and rules. So far, Norway is the only OECD country to implement and publish such reporting. Reports are also available for 2008, 2009 and 2010.

"Access to natural resources can bring great prosperity. However, this assumes that society is well-organised, with sound systems to control revenue streams. I am proud that Norway can set an example for other countries. It is a paradox that so many people live in poverty in countries that are rich in natural resources. The transparency EITI promotes is important, and Norway wants to contribute to this work by implementing exactly what we are urging others to do," says Minister of Petroleum and Energy Ola Borten Moe.

Norway has now completed its fourth report, showing the State's overall revenues from the petroleum activities, distributed by the individual licensees on the Norwegian shelf. A total of 64 companies filed reports. Similarly, the relevant government agencies reported what they have received from each company. The report was prepared by Deloitte, which received all of the reports and reconciled the figures.

According to the EITI report, the Norwegian State's revenues from petroleum activities were NOK 338 billion. This is NOK 75 billion more than the revenues received in 2010, and is a result of higher oil prices. A comparison of the reported payments shows an initial overall discrepancy of about NOK 11 million between the companies and the authorities. Deloitte's work has provided an explanation of these discrepancies.

Read more about EITI here and the complete report here.