This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ices
agreed between two parties are equal to what two independent parties
would have agreed upon jointly for each individual sale. In order to avoid
this problem, Section 4 of the Petroleum Tax Act16 states that norm prices
may be stipulated and used in the calculation of taxable income, instead of
the actual sale price. The methods for stipulation and use of norm prices
are described in the regulations. The norm price is fixed by the Norm Price
Board, and should be equivalent to the price paid for the petroleum had it
been traded between independent parties. The Norm Price Board has six
members; four of them are independent, while the Ministry of Finance and
the Ministry of Petroleum and Energy have two members each.
Norway does not just sell crude oil. Norway also has a refinery
system. The Norwegian refinery industry consists of two refineries,
Mongstad and Slagen. The Mongstad refinery is owned by StatoilHydro
(79%) and Shell (21%), whereas ExxonMobil owns the Slagen refinery. The
two refineries' ca...
View Full Document
- Summer '14