The EITI was created to fix a failure of governance in the oil, gas and mining sector and is guided by the belief that a country’s natural resources belong to its citizens. The organisation was born out of a dynamic coalition of committed activists, progressive companies and brave governments who convened to seek consensus on how the sector could be better managed. At the time of its inception,
Indonesia, the world’s fourth most populous country, abounds in natural resources. In 2016, its oil, gas and mining activities contributed 7% of total government revenues. Access to the internet is becoming more widespread across the 17,000 island archipelago nation, providing a cost-efficient way to make extractives data accessible to communities near oil, gas and mining projects. Sub-national transfers of extractive revenues amounted to USD 1.6 billion in 2016,
Government takes bold step of requesting financial models from companies
Zambia, Africa’s second-largest producer of copper, is highly dependent on mining as its major productive industry. Mining contributes to 68% of the country’s foreign exchange earnings and 73% of total export value, according to the latest EITI reporting. Zambia has made radical changes to its mining taxation policies over the past decades, giving rise to much debate and discussion in the sector.
The good governance of natural resources has undergone an openness revolution since the EITI was established over a decade ago. The information being disclosed along the extractive industry value chain is becoming increasingly timely, accurate and granular, yet challenges remain in the form of shrinking civic space, corruption and under-used data.
2018 was an eventful year for the EITI. Over USD 150 billion in extractives revenues was disclosed by the EITI countries in total, and over half of EITI’s 51 implementing countries were assessed against the Standard, of which Colombia, Mongolia, Senegal and Timor-Leste reached the highest level of progress. Efforts to tackle hidden ownership, corruption and mismanagement in the extractives advanced, as EITI countries raced ahead, with new laws, regulations and registers in Ghana, Kyrgyz Republic,
Renewable energy policy has more to learn from extractives sector governance than you might think. Here are four lessons the extractives sector can share to improve the chances of a successful energy transition – the switch from a fossil-based energy system to a more sustainable infrastructure, fuelled by clean energy sources
Indonesia’s natural resource history stretches back to its fabled spice islands. Moving forward several centuries to the 1960s, the nation introduced an innovative contract, now typical in the oil and gas sector, called a production sharing agreement (PSA). This type of agreement is currently used in many oil- and gas-rich countries, as a way for governments to obtain a share of the oil and gas produced.
Kosmos Energy has been a leader on contract transparency for many years. Since publishing their first set of contracts for Ghana in 2011, the company has established a policy that they “prefer to make the material terms of [their] Petroleum Agreements (PAs) and Production Sharing Contracts (PSCs) publicly available”. They have filed all of their PAs and PSCs with the United States Securities Exchange Commission and published links to all of these contracts on their website. Sophie Durham,
How EITI is scaling up its collaboration with leading state-owned enterprises (SOEs) to champion transparency in the extractive industries.
There’s a myth that international oil and mining companies are the main players in the extractive sector today. In fact, state-owned enterprises dwarf the private sector companies in terms of reserves. There are currently over 146 SOEs in the upstream oil, gas or mineral sectors globally,
Gold mining is a major source of government revenue in Ghana. How can those impacted by the sector use data on payments made to the government to better understand the revenues the sector generates? And how can this data be used to enhance accountability?
Most of the multinational gold companies operating in Ghana are required to disclose the payments they make to government entities under Canada’s Extractive Sector Transparency Measures Act (ESTMA). Under ESTMA, which came into force in 2015,