Norway

Investment & Operational Criteria

Key Indicators

Risk Premia

3.500

%

Outlook

Neutral

Rating

AAA|1S|±

Ranking

2

Reserves (1P)

Total

mm boe

Oil

45

%

Summary

The strong competitiveness of the Norwegian economy is built on openness and transparency, with policies that support dynamic trade and investment, and the legal framework is among the world’s strongest, providing effective protection of property rights. The tax rebate of 78% of exploration investment makes Norway an attractive destination for O&G investment. However, this is offset to some extent by the creeping regulation, driving the country away from oil & gas, hence a Outlook Neutral.

Updated

May 18, 2021

Country Basics

Region

Europe - North West

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

NorwayNorway

Northern Europe, bordering the North Sea and the North Atlantic Ocean, west of Sweden

Outline

Tax Regime
Type

Concession

Tax Regime
Notes

Companies involved in upstream activities within the geographic areas described in Section 1 of the Norwegian Petroleum Tax Act is subject to a marginal tax rate of 78% (23% ordinary corporate income tax and 55% resource rent tax) on the net operating profits derived from its extractive activities. The area covered, generally, is the area within Norwegian territorial borders or on the Norwegian continental shelf (NCS).

Investment & 
Operational
Climate

In 1949, Norway abandoned neutrality and became a member of NATO. Discovery of oil and gas in adjacent waters in the late 1960s boosted Norway's economic fortunes. Norway is a highly developed country with a small but very strong economy. Success in the O&G sector and other world-class industries like shipping, shipbuilding and aquaculture. Strong collaboration between industry and research institutions attracts international R&D activity and funding. Norwegian lawmakers and businesses welcome foreign investment as a matter of policy. Norway is politically stable, with strong property rights protection and an effective legal system. A new National Security Act that entered into force January 1, 2019, provides the legal foundations for enhanced government screening of foreign investments.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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