Informally views were exchanged with the ministry on

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Unformatted text preview: oil and gas value chain can further be divided into operators and their suppliers. Operators are companies that have production licenses or have operating rights for oil and gas fields. Statoil is the main operator in Norway, accounting for 70% of production (Sasson, 2011). The Norwegian subsidiaries of international operators ExxonMobil, Shell, Marathon, ConocoPhilips, and Eni also make the list of the top ten oil and gas firms in Norway by revenue (Capital IQ, 2012). Exports of the raw materials of oil and gas by operators totaled $83 billion in 2009, 46% of total Norwegian exports (Sasson, 2011). Operators could not have produced this volume of exports without support from suppliers. Suppliers to these operators accounted for 8% of 2009 Norwegian exports (Sasson, 2011). There are five sub ­clusters of oil and gas suppliers: 1) drill and well, 2) operations support, 3) topside, 4) subsea, and 5) geology and seismics. Table 1 describes The oil & gas cluster in Norway 17 the supplier products, important Norwegian companies, number of companies, and number of employees by sub cluster. Government Policy Decisions that shaped the Supplier Industry in Norway Several important policy decisions in the 1970s allowed the Norwegian suppliers to develop competences. The government implemented protectionist procurement policies. In §54 of the Norwegian Petroleum Code, operators, such as Phillips Petroleum, were legally required to inform the Ministry of Petroleum and Energy about supplier bids. The Ministry could then demand that specific Norwegian firms be included on the bidder list. Foreign firms could not be excluded from the list, but the Ministry had the authority to change who was awarded the contract. Informally views were exchanged with the Ministry on which company should be awarded the contract. As part of the licensing process, fore...
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