In 2013, the EITI Standard required that first trades between national oil companies and commodity traders be disclosed. The bar has since been raised with an expanded requirement in the 2019 EITI Standard. The EITI Standard requires disclosures by governments including SOEs and encourages disclosures by companies buying oil, gas and minerals from governments or state-owned enterprises.
A working group has been established to support the targeted effort, consisting of international trading companies, NGOs, and SOE representatives.
Requirements for EITI implementing countries
Requirement 4.2 of the 2019 EITI Standard aims to ensure transparency in the sale of oil, gas and minerals by governments.
According to this requirement, an SOE, government agency or third party appointed by the state must fully disclose the revenues collected from the sale of such resources, whether for export or domestic consumption. In practice, this means SOEs must disclose the volumes of commodities sold and the revenues received, broken down by buyer. The Standard recommends that the type of product, price, market and sales volume are also disclosed.
Read more about Requirement 4.2
Reporting guidelines for companies
The EITI’s reporting guidelines are for use by companies buying oil, gas and minerals from governments. They aim to ensure the consistent disclosure of payments to state or state-owned enterprises (SOEs) where oil, gas or minerals are being sold on behalf of the state, where EITI Requirements are applicable and relevant, or where there is commitment to transparency in commodity sales.
Due to their nature and economic significance, payments to states or SOEs for purchases of commodities provide information on a matter of considerable public interest. Disclosure of the terms of transactions therefore helps to improve transparency and reduce the potential for corruption.