EITI Announcements

PRESS RELEASE
HOUSTON AND OSLO, 12 MAY 2008. Monday Peter Eigen, Chair of the EITI (Extractive Industries Transparency Initiative) and founder of Transparency International, launched a new guide for how companies can play a integral role in helping create transparency in the extractive sector. Together with Rich Kruger, President of ExxonMobil Production Company, he launched the new "EITI Business Guide". It outlines how business can support the implementation of the EITI, the international initiative to improve transparency in the management of oil, gas and mining resources. EITI Implementation Guides also exist for governments and for civil society in resource-rich countries.

Peter Eigen said:

"We all recognise that, if not managed well, the revenues from oil, gas and minerals can have a negative economic and social impact for a country. I am encouraged by the growing number of companies that want to address this challenge. Increasingly companies see the importance of supporting increased transparency and better governance, and are improving their policies and systems through initiatives like the EITI. This guide will help them do just that.

ExxonMobil has been involved in EITI since the beginning. Their Chairman and CEO, Rex W Tillerson, co-authored the Foreword to the Business Guide with me. Along with 37 other major international oil, gas and mining companies, they are actively participating in the EITI process - through their country operations in implementing countries, through international-level commitments, and through industry associations. I hope that this guide will help create a step-change improvement in business transparency, helping to bring better management of natural resource resources for the 3½ billion people of the world who live in resource-rich countries."

The EITI Business Guide can be downloaded here.

7 May 2008 the EITI Board welcomed Côte d'Ivoire as an EITI Candidate Country and is now among the 23 countries in Africa, Asia, Middle East and Latin America that are underway in implementing this standard for transparency in the extractive industries. It now has two years to become compliant with the EITI Criteria and undergo validation.

Côte d'Ivoire has established a multi-stakeholder group which brings together government, the industry and civil society to discuss and promote transparency of revenues from the country's petroleum, gas and mining sectors. The group has jointly elaborated a workplan with steps to implement the EITI over the coming years.

An information campaign has been launched to inform the public about the EITI, including a television programme which explains the initiative and its aim to increase transparency in the sale of Côte d'Ivoire's resources.

For further information, contact Regional Director Tim Bittiger at the EITI International Secretariat.

On Monday 29 April Transparency International launched its report Promoting Revenue Transparency – 2008 Report on Revenue Transparency of Oil and Gas Companies.

The report is the result of an evaluation of 42 leading oil and gas companies operating in 21 countries on their current policies, management systems and performance in areas relevant to revenue transparency in their upstream operations.  The report is the latest contribution to the increasing debate on the role of companies in promoting the good management of natural resources.

Peter Eigen, Chairman of the Extractive Industries Transparency Initiative (EITI), said commenting on the launch:

"The EITI wholeheartedly agrees with the report’s main conclusion that ‘oil and gas industry leaders are demonstrating that revenue transparency is possible. Big steps have been taken in the last decade, but there is still a long way to go."

"The EITI is not a silver bullet ensuring that natural resources bring development. However, as well as creating a level-playing field for all companies, we are starting to see that the EITI is leading to increased public awareness and good governance. Under EITI, companies report what they pay to governments in taxes and royalties and, in turn, governments report what they receive from the companies."

"38 major oil, gas and mining companies have committed their support to the EITI internationally, and have played an enormous role in developing the initiative.  By doing so, they have committed publicly to encouraging high standards of transparency and accountability in business.  However, the management of natural resource wealth is ultimately the role of the sovereign governments."

"I note that of the 21 countries reviewed, only four are implementing the EITI and only two had reported according the EITI. It follows that some of the companies supporting the EITI, and particularly those with operations in a large number of countries that have not decided to implement the EITI, are not being recognized for their supporting efforts in the many countries that are implementing the EITI."

"The EITI is a still young initiative, with only 10 countries as yet having produced EITI reports.  Within two years, we expect that there will be more evidence of the importance of companies’ engagement in the initiative as part of their wider transparency efforts."

PRESS RELEASE

WASHINGTON DC AND OSLO, 13 APRIL 2008. The Extractive Industries Transparency Initiative (EITI), the global coalition for transparency in the extractive industries, supports the World Bank’s effort to extend transparency in this sector beyond revenues through its new extractive industries initiative.

At a joint press conference during the 2008 Spring Meeting of the World Bank Group and the International Monetary Fund (IMF) in Washington, Peter Eigen expressed his enthusiastic support to this proposal to put the spotlight on the entire chain of managing natural resources -- from awarding contracts, monitoring operations to collecting taxes, to improving resource extraction and economic management decisions, and spending resources effectively for sustainable growth and poverty reduction.

He said:

“The EITI affects a narrow but focused segment of this chain but its product, credible information about the payments to governments from the sector, should be the centerpiece from where the more a comprehensive approach can start. It is important to protect the integrity of the EITI, including its essential multi-stakeholder governance, as a critical building block in the EITI ++ approach.”

“The EITI is ready to participate in further discussions about the practical implementation of this new initiative, from which I will seek a mandate from the EITI Board. There may be a need to consider an alternative name to the EITI ++ that would avoid giving the impression that the EITI is a minor version of the more integrated approach proposed by the World Bank.”

Peter Eigen added that at various stages of the resource extraction cycle the various constituencies have different and sometimes conflicting interests. Strong leadership would therefore be needed to establish a coherent, overarching approach. Civil society played a key role in shaping the EITI and should play the same role in the governance of this new initiative.

He congratulated the World Bank for this important initiative and committed full engagement of EITI to make this compressive approach to a dynamic natural resources sector a success, as supporting the vision expressed by Robert B. Zoellick to build an "inclusive and sustainable globalization".

NOTES TO EDITORS:

1. Media enquiries, further questions, can be addressed to Jonas Moberg, +47 9581 7762 or Anders Tunold Kråkenes, +47 4666 2888. Jonas Moberg is now in Washington DC.

2. Other enquiries can be addressed to the EITI International Secretariat on +47 2224 2105 or by e-mail to secretariat [at] eitransparency [dot] org.

3. The EITI is a coalition of governments, companies, civil society groups, investors and international organisations. All these constituencies are represented on the Board, which is chaired by the founder of Transparency International, Peter Eigen. The EITI Secretariat is hosted by the Norwegian Government in Oslo and was formally opened on 26th September 2007.

4. 3.5 billion people live in countries rich in oil, gas and minerals. With good governance the exploitation of these resources can generate large revenues to foster growth and reduce poverty. However when governance is weak, it may result in poverty, corruption, and conflict. The Extractive Industries Transparency Initiative (EITI) aims to strengthen governance by improving transparency and accountability in the extractives sector. The EITI sets a global standard for companies to publish what they pay and for governments to disclose what they receive.

5. This press release and other EITI publications such as the EITI Validation Guide are available on the EITI website at www.eitransparency.org. If you would like EITI press releases and other important EITI updates to be sent to you automatically by email, you can subscribe to this service on the website.

The Government of Iraq has formally committed to implement the EITI making it the single largest country in terms of proven oil reserves (11% of world’s resources) to do so. It is beginning the process to identify the stakeholders, appointing a suitable senior official to lead the implementation, and drafting a workplan for the full implementation.  The oil industry is at a critical stage in Iraq with the drafting of oil legislation for the regulation of foreign investment which will be followed by a series of contract awards. It is intended that the EITI will sit within this regulatory framework.

The Deputy Prime Minister and Chairman of the Supreme Economic Council of Iraq, Dr Barham A Salih said: ‘Iraq is in the midst of a historic campaign of revival and reconstruction after decades of tyranny, mismanagement and war. The vast oil wealth that the country was blessed with is a key asset as it embarks on this journey.  In order for the people of Iraq to enjoy the full benefit of this wealth rather than it becoming a curse as happened so many times in the pat, oil and gas need to be managed in an efficient and responsible way.’

The EITI Chairman, Peter Eigen, said ‘We welcome Iraq into the EITI family. We believe that the EITI will be an important tool in driving the recovery of the nation and ensuring that its abundant oil and gas wealth can be managed for the benefit of its citizens and sustained peace.’

Recognising the EITI’s multi-stakeholder approach, the Minister of Oil, Hussein Al-Shehristani, added ‘Part of [EITI’s] outcomes would be cooperation and coordination with states and organisations and international oil companies together with the exchange of experience … in addition to promoting trust in the foreign investment for the petroleum projects in Iraq … It is also an effective step towards eradicating corruption, both administrative and financial.’

The Government of Iraq has asked for technical assistance in implementing the EITI.

Further questions about Iraq and the EITI can be directed to Regional Director Eddie Rich at the EITI International Secretariat.

The Asian Development Bank has formally endorsed the Extractive Industries Transparency Initiative. EITI Chairman Dr Peter Eigen welcomed this announcement: "The ADB joins a growing coalition of countries, organizations, companies and investors committed to promoting resource revenue transparency, and with a shared goal of ensuring that exploitation of natural resources fosters economic growth and reduces poverty. We look forward to a close working relationship with the ADB to promote the EITI principles in Asia".

PRESS RELEASE

22 February 2008, Accra, Ghana

Seven new countries have been accepted as Candidates to the Extractive Industries Transparency Initiative (EITI). They are therefore implementing the EITI principles for publishing revenues in the extractive sector. The decision was taken by the EITI International Board at its meeting in Accra on 22 February. It followed a clear commitment of these resource-rich countries to make their revenue flows from sales of oil, gas or mining more transparent.

The new EITI Candidate countries are the Democratic Republic of Congo, Equatorial Guinea, Madagascar, the Republic of Congo, Sao Tome and Principe, Sierra Leone, and Timor-Leste. There are now 22 countries in Africa, Asia, Europe, and Latin America implementing this internationally recognised standard for revenue transparency. Many other countries have also signalled their intent to implement the EITI.

The initiative, that aims to make revenue flows in the extractive industries transparent, is now actively supported by many companies in the extractive industries, over 70 institutional investors, and international organisations such as the G8, G20, EU, and the African Development Bank.

Chairman Peter Eigen said:

“Today’s decision is another big step towards establishing the EITI as the norm for resource-rich countries. The real beneficiaries will be the poor of these 7 countries that, despite the vast resource wealth of their countries, are experiencing extreme hardships. The EITI helps reconnect the ordinary citizen with the wealth of their country”.

NOTES TO EDITORS:

1. 3.5 billion people live in countries rich in oil, gas and minerals. With good governance the exploitation of these resources can generate large revenues to foster growth and reduce poverty. However when governance is weak, it may result in poverty, corruption, and conflict. The Extractive Industries Transparency Initiative (EITI) aims to strengthen governance by improving transparency and accountability in the extractives sector. The EITI sets a global standard for companies to publish what they pay and for governments to disclose what they receive.
2. The EITI is a coalition of governments, companies, civil society groups, investors and international organisations. All these constituencies are represented on the Board, which is chaired by the founder of Transparency International, Peter Eigen. The EITI Secretariat is hosted by the Norwegian Government in Oslo and was formally opened on 26th September 2007
3. To achieve Candidate status, the host government must issue a public statement of intent, commitment to work with civil society and companies, appoint a senior individual lead, and to produce a fully costed, published workplan agreed with other stakeholders. To become fully Compliant, a country needs to sign up, prepare, disclose and disseminate information on all the material revenues received by the Government from the oil, gas and mining sectors with the full engagement of other stakeholders in that country. At present, no country has been formally validated as EITI Compliant, though many of the 22 EITI Candidate Countries have advanced processes.
4. This press release and other EITI publications such as the EITI Validation Guide are available on the EITI website at www.eitransparency.org. If you would like EITI press releases and other important EITI updates to be sent to you automatically by email, you can subscribe to this service on the website.
5. Media enquiries should be addressed to Eddie Rich, +47 90914064 or Anders Tunold Kråkenes, +4746662888.
6. Non-media enquiries should be addressed to the EITI International Secretariat on +42 22242105 or by e-mail to secretariat [at] eitransparency [dot] org.