Contracts, licenses and associated agreements are important elements of a country’s legal framework. They explain the rights and obligations of all parties involved in the exploration and production of oil, gas and minerals.
By shedding light on the rules and terms that govern extractives projects, contract transparency can help curb corruption and empower citizens to assess whether they are getting a good deal for their resources. Publication of contracts gives visibility on how much revenue is expected to flow to national and subnational governments. This information can be crucial in contexts where precious revenues are impacted by market volatility and emerging energy transition policies.
The EITI Standard requires EITI implementing countries to disclose all contracts and licenses that are granted or amended from 1 January 2021. This requirement reflects how contract transparency in the extractive sector has become a global norm in recent years.
This brief outline the key benefits, common myths and emerging practices of contract disclosure.