Albania

Albania’s 2015 EITI Report, published in March 2017, disclosed new information on how commodity trading works in Albania, notably:

• The type of oil production that Albpetrol, the SOE, sells on behalf of the State. Albpetrol receives profit share in-kind from licensees in exchange for their rights to produce oil, as well as equity oil as a return on investments from the projects that Albetrol has decided to participate in. The commodity sales report covers both types of oil and estimates how much of what is sold is equity oil – about 29% - as opposed to profit share.
• Volumes of oil sold and revenue received, including quantities forecasted to be traded under the contract - 100k tons in 2015 - as well as actual quantities sold during FY 2015, notably 85k tons. The actual sales values and price are disaggregated by month.
• Information about the process for selecting buyers, including an overview of how auctions are conducted. A summary of the auctions in 2013, 2014 and 2015 are disclosed, including the forecasted sales volume of the annual contract, the auction starting price, the winning bid, the name of the company winning the bid, the name of non-winning applicants and links to further information.
• Explanation of the pricing system. The auction start price is set with reference to Brent oil prices through a formula that considers quality of oil to be delivered, access to international markets etc. The price includes adjustments for the transport costs in consideration to the delivery point.
• Transfer and expenditure of oil sale proceeds. According to the report, it seems like Albpetrol retains the revenue from both the sale of profit oil and the sale of equity oil. 

Chad

Chad recently confirmed its official participation in the targeted effort, and is considering reporting on the long-term agreement between the Government of Chad and Glencore that includes a USD 1.2 billion oil-backed loan to the government. A national working group has been established to prepared reporting templates. 

Ghana

Ghana's national oil company GNPC represents the country’s interest in the oil sector by engaging in exploration, development, production, and disposal of hydrocarbon resources on behalf of the state. GNPC sells its production share and royalties collected in-kind from other companies on behalf of the state to commodity trading companies. Ghana committed to participate in EITI's targeted efforts to improve commodity trading transparency during the Anti-Corruption Summit in London (May 2016), and GHEITI has prepared a programme for their work on commodity trading transparency outlining the following objectives:

GHEITI’s commodity trading work programme, which is likely to be updated in June, outlines the following objectives:

1. Gain a good understanding of the mandate of the government agency or SOE in selling commodities on behalf of the state or the private sector players in mining;
2. Identify the key actors and transactions involved in commodity trading for mining and oil/gas;
3. Develop a framework for disclosure of timely and reliable information on the private sector players involved in commodity sales or sales of “in-kind” revenues by SOEs;
4. Ensure adequate reporting in accordance with the EITI Standard.

A commodity trading report is expected in October 2017.

Indonesia

In Indonesia, commodity trading occurs through Pertamina, the sole SOE in Indonesia’s oil and gas sector. Other contractors are likewise authorised under their Production Sharing Contracts (PSCs) with SKK Migas, the oil and gas regulator, to sell commodities on behalf of the government. Pertamina’s downstream activities include oil and gas refining and managing the distribution and marketing of the refined products. PSC holders deliver the government’s share in oil lifting and Domestic Market Obligation (DMO) to Pertamina’s domestic refineries. Pertamina then transfers payments to the treasury.   

On 1 January 2015, Pertamina started conducting its import and sales (export) activity of crude oil and refined products through the Integrated Supply Chain (ISC). The procurement and sales are done either through direct negotiation or closed tender to business partners that are registered with Pertamina.  ISC is also in charge of selling crude oil from Pertamina’s upstream entitlements. These activities are regulated by SKK Migas which controls Pertamina’s operations. 

Indonesia’s latest EITI Report describes in general terms how trading is conducted. However, in view of the relevance of commodity trading in Indonesia’s oil and gas sector, Indonesia has agreed on the following objectives for its participation in the targeted effort on commodity trading transparency:

1. Understand the entire value chain from production to trading and evaluate gaps in policies;
2. Gain comprehension regarding factors influencing domestic oil pricing, in particular, how the Indonesia Crude Price (ICP)  is determined, and provide recommendations to government policies related to pricing;
3. Understand Pertamina-ISC’s tendering processes, i.e., how it evaluates applications from traders, and to see how the new system under ISC compares with the system under Petral;
4. Complement ISC’s efforts in making their operations transparent; and
5. Address negative allegations against Pertamina and provide an opportunity to rebuild their reputation as an SOE.

The commodity trading report is expected in August 2017.