Petroleum resource management: The role of institutional frameworks and fiscal regimes in value creation : a comparative analysis for Norway and Nigeria

Abstract

The p etroleum industry plays a big role in the economy of oil - exporting countries such as Norway and Nigeria . So while the countries depend on their petroleum resource to literally “ fuel the economy ” , studies have shown that macroeconomic activity and fluctuati ons in oil prices are not significantly linked and thus do not completely describe the sector’s performance. It is therefore that other factor s, such as the design of the institutional frameworks, could be instrumental in driving the sector’s performance a nd creating value. As studies in resource management point to an institutional dimension, this paper explores the role of institutional frameworks as well as fiscal regimes in deriving value from the petroleum resources for Norway and Nigeria respectively. The countries are chosen because they share similarities in the origins of their petroleum in dustries but have since taken different paths to exhibit diverse petroleum sector performance. The paper studies the factors that create, affect and negate value creation for Norway and Nigeria in a qualitative sense to restrict the scope of the paper. The paper presents a comparative study of gauging the factor s for each co untry in its respective context of creating value in the petroleum industry.