Guidance note 18 on SOE participation in EITI reporting
Related to requirements 2.6, 4.2, 4.5, 6.2 (2016 Standard) / requirements 3.6, 4.1(c) and 4.2(c) (2013 Standard) /
|Please note that this guidance refers to the 2013 Standard. In most cases, the requirements remain the same and the guidance valid. An updated version reflecting the 2016 Standard will follow soon.|
In 2012, the IMF reported that “some 80 percent of world petroleum reserves are controlled by state companies and 15 of the 20 largest oil companies are state-owned”.
State-owned enterprises (SOEs) are less common or dominant in the mining sector but may still play an important role in some countries. SOEs may own and operate projects, either outright or in joint ventures.
State equity is used by many countries to secure additional government take (beyond tax revenue) from extractive projects. This is sometimes motivated by non-fiscal concerns such as: a desire for direct government ownership, a “seat at the table,” or to facilitate the transfer of knowledge.
Step 1 – Review the legislative and regulatory arrangements
Step 2 – Establish the extent of state participation in the extractive industries, including through state owned enterprises
Example from Ghana: Reporting on changes in ownership.
Example from Kazakhstan: Level of ownership held by Kazatomprom NAC in extractive companies
Step 3 – Ensure that the reporting process comprehensively addresses the role of SOEs.
Example from Albania: Reporting on payments by oil and gas companies to SOEs, and payments by SOEs to other government entities.
Example from Norway: Reporting on transfers between SOEs and government entities.
Step 4 – Where applicable, develop a reporting procedure for the sale of the state’s share of production
Example from Iraq: Volumes sold and revenue received from the sale of the state’s share of production or other revenues collected in kind.
Example from Nigeria
Step 5 – Where applicable, develop a reporting procedure for quasi-fiscal expenditures
Box 1 - Types of Quasi-fiscal Activity (IMF, 2007 p 80)
3. Case study: Ghana