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Extractive Industries

Transparency and accountability in the extractive industry sector is crucial to mitigating the effects of the “resource curse” in countries endowed with natural resources.

Overview

More than 50 countries depend on oil, gas and minerals as their most important sources of government and export revenues. However, evidence shows that their performance on human development indicators compares unfavourably to less-endowed countries. At the root of this underperformance is the failure by governments to properly address the institutional and policy challenges that come with natural resources.

Open government approaches in the governance of natural resources can help detect corruption, safeguard community interests, improve the investment climate, and support environmental sustainability. Extractive industry commitments are a common area of activity within OGP, with potential to complement other initiatives within this sector.

Oil rig in the yards
Nigeria

Nigeria’s Push for Beneficial Ownership Transparency in Procurement and in the Extractives Sector

Lessons from Reformers: As a resource-rich country that has been plagued by grand corruption, beneficial ownership transparency has emerged as an important tool in Nigeria.

Model Commitments

Initial Commitments

  • Disclose contracts signed with extractive companies
  • Make all rules and regulations for natural resource licenses and concessions available in a public database
  • Publish timely, comprehensive reports on oil, gas and mining operations, including detailed revenue and project information

 

Intermediate Commitments

  • Create a national strategy for the extractive sector, through an open and participative process Create mechanisms for the public and legislators to engage in extractive concessioning
  • Publish comprehensive financial reports on natural resource funds
  • Publish environmental and economic impact studies for all natural resource projects
  • Publish resource-related revenue transfers to sub-national governments
  • Require state owned enterprises to publish comprehensive reports

 

Advanced Commitments

  • Create a public web registry of all natural resource concessions
  • Require all listed companies to disclose resource related payments on a project by project basis

 

Recommendations

  • Find synergies between Extractive Industries Transparency Initiative (EITI) and OGP: OGP members can improve extractives industries transparency by applying policies like open contracting and beneficial ownership to extractives sector management.
  • Advance the implementation of Sustainable Development Goal 13 (SDG): OGP members can consider commitments that develop, track, and publish relevant milestones and indicators of sustainable development and climate action.  
  • Advance community rights: OGP members can provide indigenous and marginalized communities with information about land use and ownership and involve them in decision-making processes concerning land use.

Partners

Resources

  1. How to Read and Understand Mining Contracts

    , Outbound Link, Web Page

  2. 1970, Document,

  3. http://openoil.net/understanding-oil-contracts/

    The Department for International Development (DFID), Open Society Foundation and the Hewlett Foundation are jointly supporting an independent, multi-country, multi-policy…

    2019, Stories, Web Page

  4. Environmental Democracy Index (WRI)

    , Outbound Link, Web Page

  5. ONRWG_Closing-Gap[1]

    2019, Document, PDF

  6. Disclosing beneficial ownership information in the natural resource sector (French)

    2017, Document, PDF

  7. Disclosing contracts in the natural resource sector (English)

    2017, Document, PDF

  8. Disclosing environmental information in the natural resource sector (English)

    2019, Document, PDF

  9. FINOGPIssueBriefKDisc_0[1]

    2019, Document, PDF

  10. Disclosing beneficial ownership information in the natural resource sector (English)

    2019, Document, PDF

  11. NRGI Primers: A Series About Resource Governance

    , Outbound Link, Web Page

  12. Guidance Notes on the EITI Standard

    , Outbound Link, Web Page

  13. The EITI Standard

    , Outbound Link, Web Page

  14. https://www.open-contracting.org/data-standard/

    , Outbound Link, Web Page

  15. Resource Governance Index (NRGI)

    , Outbound Link, Web Page

Commitments

  1. Starred commitment Adoption of the Environmental Assessment Code

    GE0057, 2016, Capacity Building

  2. Starred commitment Well-Being Duty

    UK0089, 2016, E-Government

  3. Starred commitment Energy Sector Watch: Transparent, Accessible and Participatory

    CL0032, 2016, E-Government

  4. Starred commitment Extractive Industries Transparency Initiative

    UA0065, 2016, Extractive Industries

  5. Starred commitment National Water Plan

    UY0072, 2016, Capacity Building

  6. Starred commitment Commissions for Extractive Industries Transparency

    PE0054, 2015, Extractive Industries

  7. Starred commitment Citizen Participation in Transparency and Royalties

    CO0046, 2015, Audits and Controls

  8. Starred commitment Mandatory Reporting on Extractives

    CA0036, 2014, Extractive Industries

  9. Starred commitment Strengthening Environmental Democracy

    CL0031, 2014, Environment and Climate

  10. Starred commitment Single Treasure Account

    SL0005, 2014, Extractive Industries

  11. Starred commitment Extractive Transparency

    UK0062, 2013, E-Government

  12. Starred commitment Initiate Fiscal Transparency in the Extractive Industry

    PH0027, 2013, Extractive Industries

  13. Starred commitment Implement the Extractive Industries Transparency Initiative

    US0037, 2013, Environment and Climate

  14. Starred commitment Royalties and Transparency Initiative Extractive Industries: Eiti

    CO0025, 2012, Extractive Industries

  15. Starred commitment Extractive Industries Transparency Initiative

    UA0011, 2012, E-Government

  16. Starred commitment Mining Industry and Underground Resources

    BG0006, 2012, Extractive Industries

  17. Starred commitment Public Information System on Mineral Resources

    BG0008, 2012, Extractive Industries

  18. Making Energy Statistics Available

    NO0055, 2019, E-Government

  19. Beneficial ownership registry

    SL0025, 2019, Beneficial Ownership

  20. Natural Resource Transparency

    UK0094, 2019, E-Government

  21. National Energy Efficiency Plan

    UY0130, 2018, Capacity Building

  22. Industry, Energy and Mining Data Publication

    UY0131, 2018, E-Government

  23. Open Data

    HN0062, 2018, Capacity Building

  24. Transparency in Extractive Industries

    HN0078, 2018, Capacity Building

  25. Join EITI

    NL0030, 2018, Anti-Corruption Institutions

  26. Join EITI

    TN0041, 2018, Capacity Building

  27. Open Contracting in Hydrocarbons

    TN0042, 2018, Capacity Building

  28. EITI Process

    PNG0007, 2018, Extractive Industries

  29. Participatory Tech in Extractives

    COT0004, 2018, Capacity Building

  30. Extractives Data Management

    ID0092, 2018, Beneficial Ownership

  31. Complaint System for Environment

    ID0102, 2018, E-Government

  32. Beneficial Ownership Register

    AM0037, 2018, Anti-Corruption Institutions

  33. Mining Data Disclosure

    KG0015, 2018, E-Government

  34. Database of Natural Resources

    UA0079, 2018, E-Government

  35. EITI Online Data

    UA0083, 2018, E-Government

  36. Open Data/Citizen Navigation Portal

    LR0036, 2017, Audits and Controls

  37. Promote Access to Information of Public Funds Linked to Extractive Activities in Multilevel Instances

    PE0069, 2017, Extractive Industries

  38. Financial Transparency - EITI Standard

    DE0005, 2017, E-Government

  39. Developing a New Transparency Portal for Madrid City Council

    MAD0002, 2017, Asset Disclosure

  40. Extractives Sector Transparency

    GH0024, 2017, Extractive Industries

  41. Philippine Extractive Industries Transparency Initiative

    PH0052, 2017, Beneficial Ownership

  42. Integrated Mining Information System

    AR0040, 2017, E-Government

  43. Open Contracting

    NG0002, 2017, Capacity Building

  44. Extractive Sector Transparency

    NG0003, 2017, Beneficial Ownership

  45. Anti-Corruption Activity Coordination

    NG0009, 2017, Anti-Corruption Institutions

  46. Citizen Participation in the Establishment, Implementation and Social Control of the Commitments Made by the Ministry of Mines and Energy and Stakeholders

    CO0062, 2017, Extractive Industries

  47. National Environmental Act (NEA) Amendments

    LK0007, 2016, Capacity Building

  48. Publish the Number of Carats of Diamond Exported and Accompanying Kimberly Process Certificates

    CI0001, 2016, Capacity Building

  49. Create and Operationalize 5 Local Mining Development Committees (CDLM)

    CI0002, 2016, Extractive Industries

  50. Transparency of Contracts of Public Resource Exploiting

    MN0032, 2016, Anti-Corruption Institutions

  51. Information Transparency of the Owners of the Entities with Rights to Use Mineral Resources

    MN0033, 2016, Anti-Corruption Institutions

  52. Make Licenses, Information and Activities of the Companies Transparent and Effective by Government

    MN0034, 2016, Anti-Corruption Institutions

  53. Increasing Transparency in Extractive Industries

    AZ0046, 2016, Capacity Building

  54. Ensuring Private Sector Accountability and Involvement in National Climate Change Action

    MK0120, 2016, E-Government

  55. Natural Resource Transparency

    UK0064, 2016, Extractive Industries

  56. Implement the Extractives Sector Transparency Measures Act

    CA0058, 2016, Capacity Building

  57. Resilient Communities

    HN0058, 2016, Capacity Building

  58. Extractive Industry Transparency Initiative (EITI)

    MW0005, 2016, Extractive Industries

  59. Codelco Transparency Website

    CL0035, 2016, E-Government

  60. Country-By-Country Reporting

    NO0052, 2016, Extractive Industries

  61. Joining the Extractive Industries Transparency Initiative "EITI"

    TN0021, 2016, Capacity Building

  62. Geospatial Maritime Data

    GR0042, 2016, E-Government

  63. Marine and Maritime Activity

    GR0044, 2016, E-Government

  64. Environmental Management Information Portal

    ZA0019, 2016, E-Government

  65. Reducing Vulnerability and Risks Associated Variability and Climate Change, Generating, Disseminating and Articulating Date, Affordable, Public and Binding on the Public Decision-Making Information.

    MX0074, 2016, E-Government

  66. Publish Oil and Gas Contracts

    KE0013, 2016, Extractive Industries

  67. Public Environmental Information and Natural Resources

    PY0030, 2016, E-Government

  68. Extractive Industries Transparency

    AU0003, 2016, Beneficial Ownership

  69. Access to Government Data

    AU0010, 2016, Capacity Building

  70. Environmental Monitoring Points

    UY0070, 2016, Capacity Building

  71. Introduction of Electronic Licensing System in the Field of Natural Resources Application

    GE0044, 2016, Capacity Building

  72. Publication of Energy Data

    UY0075, 2016, E-Government

  73. Extractive Industries' Transparency

    PH0032, 2015, Extractive Industries

  74. Extractive Industries Transparency

    US0083, 2015, Extractive Industries

  75. Transparency in Extractive Industries

    FR0010, 2015, Extractive Industries

  76. Citizen Participation and Accountability in the Extractive Sector

    CO0040, 2015, Capacity Building

  77. Support Capacity Building for Extractives Transparency

    US0103, 2015, Capacity Building

  78. Map Investments

    CO0045, 2015, E-Government

  79. Environmental Public Expenditure Management

    CO0049, 2015, Audits and Controls

  80. Public Information on Land and Natural Resource Reform

    LR0010, 2015, Extractive Industries

  81. Publish and Revise 70% of Mining and Agricultural Lease Agreements and Contracts

    SL0009, 2014, E-Government

  82. Open Data Portal for Transparency in Fiscal and Extractive Transactions

    SL0011, 2014, E-Government

  83. Adherence to the Global Compact of the United Nations Organization

    SV0075, 2014, Anti-Corruption Institutions

  84. Knowing the EITI and Its Results.

    HN0042, 2014, Extractive Industries

  85. Tanzania to Fulfill Its EITI Commitments by June 2016

    TZ0030, 2014, Extractive Industries

  86. To Audit the Accounts of the Ministry of Energy and Energy Affairs to International Standards

    TT0011, 2014, Audits and Controls

  87. To Make Publicly Available the Cadastre of Licenses and Contracts for the Exploration and Production of Oil and Gas in Trinidad and Tobago

    TT0012, 2014, E-Government

  88. To Include the Mineral Sector (Starting with National Quarries Company Ltd) in the TTEITI Reporting Mechanism

    TT0013, 2014, E-Government

  89. Development of an "Open Data" Platform Dedicated to Information Dealing with Oil and Mine Sector Investment

    TN0018, 2014, Extractive Industries

  90. Accelerate Open and Good Governance Practices in Natural Resources Management

    ID0039, 2014, Environment and Climate

  91. Implementation and Monitoring of the EITI Initiative

    GT0021, 2014, Extractive Industries

  92. Digitization and publication of data in the “Republican Geological Fund” SNCO

    AM0016, 2014, Extractive Industries

  93. Promote Transparency and Accountability in the Management of Natural Resources to Ensure That Revenues from Extractive Industries Are Used to Generate Social Welfare.

    GT0028, 2014, Extractive Industries

  94. Ensuring Transparency in Mining

    AM0017, 2014, Extractive Industries

  95. Implementation of the School of Transparency.

    GT0033, 2014, Anti-Corruption Institutions

  96. Transparency of Underground Resources Act

    BG0033, 2014, Extractive Industries

  97. Compliance with EITI

    UA0040, 2014, Extractive Industries

  98. Develop Central Information Database of Minerals, Oil, and Land Tenure License Owners, Open to the Public.

    MN0004, 2014, E-Government

  99. Ensure Transparency All Agreements on Investment, Stability and Production- Sharing of Public-Owned Resources Such as Water, Minerals, Oil and Land.

    MN0005, 2014, Extractive Industries

  100. Extractive Industry Revenue Act

    SL0006, 2014, Extractive Industries

  101. Scaling up Extractive Industry Transparency Initiatives

    SL0007, 2014, Extractive Industries

  102. Extractive Sector Revenue Management

    GH0005, 2013, Extractive Industries

  103. Transparency in the Management of Oil and Gas Revenues

    NO0034, 2013, Extractive Industries

  104. Make Fossil Fuel Subsidies More Transparent

    US0038, 2013, Extractive Industries

  105. Forest Management

    ID0019, 2013, E-Government

  106. Transparency and Accountability in Natural Resources Management Activity

    ID0020, 2013, E-Government

  107. Oil, Gas, and Mining Revenue Transparency

    ID0021, 2013, Extractive Industries

  108. Open and Participative Entrepreneurial Background

    MX0048, 2013, E-Government

  109. Oil for the Benefit of All

    MX0059, 2013, Extractive Industries

  110. Mining for Everyone

    MX0060, 2013, Environment and Climate

  111. Mexico Accession to the Transparency Initiative Extractive Industries

    MX0063, 2013, Extractive Industries

  112. Extractive Industries Transparency

    LR0003, 2013, Audits and Controls

  113. Implementation of the Extractive Industry Transparency Initiative

    AZ0031, 2012, Extractive Industries

  114. Disclosure of Income from Extractive Industries

    AZ0032, 2012, Asset Disclosure

  115. Disclosure of Annual EITI Reports

    AZ0033, 2012, Extractive Industries

  116. Implementation of the EITI Recommendations

    AL0030, 2012, Extractive Industries

  117. Public Participation in Environmental Matters

    CL0019, 2012, Environment and Climate

  118. Initiating Discussions to Join the Extractive Industries Transparency Initiative (EITI).

    JO0033, 2012, Extractive Industries

  119. Country by Country Reporting in the Extractive and Forestry Industries

    DK0022, 2012, Extractive Industries

  120. Law on the Underground Resources

    BG0007, 2012, Extractive Industries

  121. Transparency of Managing Mineral Resources

    BG0009, 2012, Extractive Industries

  122. Streamlining Environmental Assessment Procedures

    ES0011, 2012, E-Government

  123. Environmental Issues Access

    PE0010, 2012, Environment and Climate

  124. EITI Commission

    PE0011, 2012, Extractive Industries

  125. Transparency in the Management of Oil and Gas Revenues / Financial Transparency

    NO0010, 2011, Aid

  126. Provide Enforcement and Compliance Data Online

    US0004, 2011, Environment and Climate

  127. Implement the EITI

    US0019, 2011, Extractive Industries

  128. Partnership to Build on Recent Progress

    US0020, 2011, Extractive Industries

  129. Corporate Accountability D: Mexico’s Joining the EITI

    MX0007, 2011, Extractive Industries

  130. Environmental Openness

    ID0012, 2011, Environment and Climate

  131. Mining Projects Database

    MX0013, 2011, Extractive Industries

  132. Publish PEMEX Donation Data

    MX0014, 2011, Extractive Industries

  133. Publish PEMEX Contract Data

    MX0016, 2011, Extractive Industries

  134. Regulatory Search Engines (Energy)

    MX0024, 2011, E-Government

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