The document provides an overview of national oil companies (NOCs) and hybrid NOCs like Petronas, Petrobras, and Statoil. It discusses the reasons for establishing NOCs, common stereotypes of NOCs, different types of NOCs, and factors driving commercialization. The document also summarizes the important events, government relationships, global investments, and strengths/weaknesses of Petronas, Petrobras, and Statoil. It concludes by considering the future outlook for NOCs and some specific hybrid companies.

1. The Way of the Hybrid NOC Michael T. Jones The Fletcher School EIB B234

3. Times are a Changin’

4. Oil Prices, Nationalizations, and Privatizations Government Takeovers Government Divestitures $137 b in divestitures $6 trillion to go!

5. NOCs in the Global 500 Source: Fortune Magazine

6. Ratio Comparisons Source: PIW Profit margin employee/profit ratio (m) NOCs 12% 23 IOCs 18% 5 Hybrids 16% 6

10. Drivers of Commercialization Technology Resources Source: PFC CNOOC Sinopec ONGC CNPC S. Aramco Gazprom/Rosneft National Asset Holders NNPC Finance and Security Seekers PEMEX Pertamina Petronas Statoil Petrobras Entrepreneurial NOCs LNOC Technology Seekers PDVSA KPC Ecopetrol EGPC Declining NOCs PTT Sonangol NIOC Sonatrach QP Market Seekers More adept Less adept Diminishing Production Expanding Production

13. Hybrid NOC’s Competitive Advantages Saudi Aramco’s Oil Supply Planning and Scheduling Dept.

15. Pre-Salt Challenge

16. Statoil: Subsea & IOR

19. Malaysia: Petronas

20. Government Relations: Petronas Petroleum Product Pricing Downstream Regulators Subsidies Dividends Energy Policy Upstream Regulator Natural Gas Pricing PM is also Minister of Finance

24. Petronas: Global Investments

27. Brazil: Petrobras

28. Government Relations: Petrobras Regulator: issues E&P licenses

30. Petrobras: Global Investments

32. When technology outpaces skill…

33. Norway: Statoil

34. Government Relations: Statoil Source: Norwegian Ministry of Petroleum and Energy Consultant Government Investor NOC Pension Manager ($280 b) Policymaker Administrator/ Regulator

36. Home Reserves & Commercialization Process Protection Competition Partial Privatization Internationalization Reserves Domestic Political Power International Political Power

37. Statoil: Global Investments

38. Comparisons: Strengths-Weaknesses Strengths Weaknesses

39. Ingredients for an efficient NOC: Clear separation of powers/regulator X X No Financial and managerial autonomy X X ? Timely injection of competition X X ? Desperation (diminishing reserves) ? X X Technological innovation X X X Educated workforce X X ?

40. Future Outlook State Market ?

43. Thank you!

44. Who Are the NOCs? (cont.) Source: PwC Norway Azerbaijan China Mexico Brazil Malaysia India Egypt Angola Oman Indonesia Libya Nigeria Venezuela Kuwait Iran Saudi Arabia Russia Algeria Qatar UAE Iraq Kazakhstan Uzbekistan Turkmenistan Under Development PSCs Available International NOCs Restricted Access Gas to Markets BOE Reserves BOE Production

45. Brazil is soon to become a net exporter of oil… Missing their production targets!