Seychelles

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2014
Latest Data From 2014

Overview

The country does not currently commercially produce oil, gas or minerals, although international companies are exploring for petroleum offshore. A commercially viable discovery could have a significant impact on a country with a population of around 90,000 and an economy dominated by tourism and fisheries. EITI reporting can provide insights to management of the nascent oil sector in the Seychelles including information on environmental risks associated to offshore oil exploration and production.

Beneficial ownership disclosure

Objectives of beneficial ownership transparency in Seychelles

  • Promoting good governance

Progress on implementing beneficial ownership disclosure

Seychelles requested reporting companies to disclose beneficial ownership in its first EITI Report published in February 2016. Some companies provided information on their shareholders. Considering the small size of the sector and that most companies operating in the country are publicly listed, much of the information on company ownership is made available though existing company regulations.

 

Seychelles is fully committed to ensuring the highest degree of transparency in the management of any potential oil discovery.
HE Pierre Laporte, former Minister of Finance, Trade and Investment

Production

Seychelles does not currently produce any mineral or petroleum products.

Natural resources

Seychelles comprises 115 islands spread over 1.4 million sq. km in the western Indian Ocean, covering only 455 sq. km in land area. In 2012, the US Geological Service conducted an assessment of oil and gas resources along the coast of East Africa between Tanzania, Mozambique and Seychelles, yielding encouraging results. In 2013 Seychelles and Mauritius established a Joint Management Zone.

CommodityReservesUnitSignificance
OilN/AProspecting offshore is ongoing.
GasN/A

Revenue collection

The latest EITI disclosures (2014) show that Seychelles received USD 350,000 from extractive industry license fees. Two companies accounted for three quarters of these revenues. The Seychelles Revenue Commission (SRC) is the main body responsible for collecting taxes paid to central government, while the Ministry of Finance, Trade and the Blue Economy (MFTBE) manages various application and rental fees levied by PetroSeychelles.

Initializing chart.

Revenue allocation

All revenues flow through the central budget before allocation to government agencies and ministries. There is no fiscal devolution in Seychelles.

Social and economic contribution

The extractive sector in Seychelles is still nascent, and the social and economic contribution to the sector is minor (less than 1% of GDP, exports and employment).

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • The 2013 and 2014 EITI Reports provide the first comprehensive description of the nascent oil and gas sector in Seychelles.  

  • On the basis of preliminary geological data, the Seychelles Government has revised its petroleum legislation, including the fiscal regime, and Model Petroleum Agreement.

  • PetroSeychelles, the national oil company, has implemented an “Open Filing” procedure for accepting applications for petroleum concessions.

Implementation

Seychelles EITI is currently updating its work plan, which includes plans for developing a three-year beneficial ownership roadmap and assessing options for embedding EITI reporting in government systems. Seychelles EITI is also considering including relevant aspects to EITI reporting such as assessing the environmental impacts of the sector and designing a revenue management mechanism.

Governance

Seychelles has been an EITI Candidate since August 2014. The government issued a press release on 19 June 2013 announcing its intention to apply for EITI Candidature and reiterated this commitment in the 2014 Budget speech on 10 December 2013. The multi-stakeholder group, chaired by HE Patrick Payet, Principal Secretary for Finance, adopted its ToR on 15 May 2014 with 2.5 year term limits renewable two years.

Timeline

Validation

Seychelles' Validation against the Standard will commence on 1 January 2018. The country was admitted as EITI candidate in 2014.