.
In 1973 the Norwegian Government and the local Parliament, denoting that oil resources should be used to build a better society on a long-term basis, agreed and recorded the "10 Commandments for Hydrocarbons" in a White Paper which are as follows:
• First commandment: Continuous monitoring and control of all relevant processes for the extraction and management of Norwegian hydrocarbons should be ensured
• Second commandment: Hydrocarbon discovery should be exploited in a manner that will render Norway independent from third parties in terms of its hydrocarbons needs
• Third commandment: A new oil industry should be developed
• Fourth commandment: The development of the oil industry should take into account existing industrial activities as well as the protection of the environment
• Fifth commandment: Burning of exploited Norwegian gas is not acceptable with the exception of short testing periods
• Sixth commandment: Norwegian hydrocarbons should be processed and managed on Norwegian territory, except in cases where socio-political reasons should dictate otherwise
• Seventh commandment: The Norwegian State should be involved at all levels and have a say in issues that touch on Norwegian interests in the oil industry which is to be created as well as facilitating the creation of an integrated oil liaison both at national and international level
• Eighth commandment: A state hydrocarbon company will be set up to protect the commercial interests of the Norwegian State and maintain appropriate co-operation with domestic and foreign oil interests
• Ninth commandment: Several activities north of the 62nd parallel should be selected to reflect the specific socio-political conditions prevailing in that particular part of Norway
• Tenth commandment: The hydrocarbon discoveries can reshape Norway's foreign policy
Norway's declared position that oil resources belong to the Norwegian people and that they should be managed to the benefit of the whole of the Norwegian society has been the foundation of its oil resources management.
The Norwegian hydrocarbon management model is considered to be the world's most reliable, transparent and attractive system, with impressive efficiency in its 50 years of application and operation.
The Norwegians invest profits occurring from the exploitation of the country’s mineral wealth, which accounts for 25% of the total Gross Domestic Product (GDP), in funding programs that are based on the well-being of their citizens.
At the same time, a share of the profits earned by the state is invested in such a way as to secure future generations, once the Norwegian oil and gas reserves are exhausted.
The Norwegians have a great deal of know-how when it comes to research, but also have the most advanced institutional framework. Their tax system and the way in which the Norwegian state utilises revenues from the hydrocarbon industry has a particular social dimension. These specific resources are being used to the benefit of society, through the creation of a pension fund to cover the citizens.
This fund currently has assets worth over €400 bln. Revenues are accrued from taxation, oil company dividends, and research licenses. Funds are invested by the Central Bank of Norway in real estate, equities and bonds around the world, while management takes into consideration economic and ethical criteria. For example, investments are not made in companies that do not meet specific criteria.
Can we replicate the Norwegian model to meet our needs in Cyprus? Yes, we could. It has already been said several times that the state intends to set up the Cypriot hydrocarbon fund based on the Norwegian model and to move parallel to it, creating similar structures.
That is, the state's revenues from the use of hydrocarbons should be the key element of a social solidarity fund for generations to come, which will support the Cyprus Social Insurance system over the next decades, replicating the Norwegian model, and at the same time give our country a huge geo-economic boost through the solution of basic problems of the national economy.
As in the case of Norway, natural gas resources belong to the Cyprus people and should be managed in a way that benefits the whole of society. That is why it is necessary, before taking any other actions regarding the management of the Cyprus gas and oil reserves to codify our 10 commandments for the exploitation of hydrocarbons.
These should be backed by a broad political alliance, as was the case in 1973 in Norway. Only in this way will the continuity and proper management of Cypriot hydrocarbons be guaranteed, irrespective of which political party is in power, for the benefit of Cypriot citizens.
