A survey of leading oil and gas companies shows that the majority are far from transparent about their payments to resource-rich countries. The new report, from Transparency International and Revenue Watch, evaluates levels of revenue transparency, points to best practices, and suggests areas for improvement.
Though a few proactive companies have demonstrated that better disclosure is possible, the report urges companies to broaden and standardize reporting practices, including country-by-country reporting on payments to governments. The report also calls on governments, stock exchanges and regulatory agencies institute mandatory reporting regulations for extractive industry companies.
The 2008 Report on Revenue Transparency of Oil and Gas Companies covers 42 companies operating in 21 countries. Cobus de Swardt, Managing Director of TI says TI hopes that the report "helps motivate companies to improve their revenue transparency and that they understand that civil society stands ready as a constructive partner in this process." He added that "when we update the report data we look forward to seeing not only improved scores, but greater company engagement in our work. This is an issue that can only be tackled collaboratively."
The Promoting Revenue Transparency project of Revenue Watch and Transparency International measures revenue transparency performance by all relevant stakeholders; identifies areas for improvement; promotes improved standards and supports the use of its findings by companies, rating agencies, investors, government regulators and civil society as robust set of performance indicators.
Hear audio commentary on the report from Revenue Watch director Karin Lissakers and Juanita Olaya, manager of the Promoting Revenue Transparency project.