EITI Requirement 4.2 focuses on disclosure of the sales of the state’s share of production and other ‘in-kind’ revenues:
“Where the sale of the state’s share of production or other revenues collected in-kind is material, the government, including state owned enterprises, are required to disclose the volumes sold and revenues received.”
According to this requirement, all material commodity sales by SOEs or other government agencies related to the government’s share of production or other revenues collected in kind must be disclosed in the EITI Report, including exports sales as well as sales to domestic buyers and refineries. This typically means that SOEs will disclose the volumes of commodities sold and the revenues received, broken down by buying company. In some countries, like Iraq, the buyers of the oil from the government also disclose how much they pay to the government, allowing an Independent Administrator to reconcile these figures in EITI Reports.
Implementation of this requirement has been particularly challenging for many multi-stakeholder groups. The EITI Board is currently exploring options to increase support to implementing countries to address these issues.