9. The NOC or NRC
In the past, most NOCs performed the dual role of being both a regulator and a market player (competitor with IOCs). There is consensus that this created a conflict of interest in the NOCs’ roles.
It is common for NOCs to take on dual roles during the exploration phase, especially in relation to data collection and data sales. This corporate strategy is then re-considered in the production phase.
The widely preferred model is the Norwegian model, where NOCs are restricted to commercial activities and there is an independent regulator to oversee regulation, and a government agency (like the sector ministry), to oversee policy formulation.
Explore the NOCs Topic Overview for a more comprehensive discussion.