Gunvor, Statoil Considers Joining Global Initiative

 

The latest transparency drive by the Extractive Industries Transparency Initiative (EITI) could lead to the disclosure of the billions of dollars in payments made between commodities traders and national oil companies of energy-rich nations such as Nigeria and Azerbaijan.

 

EITI is a global standard to promote open and accountable management of natural resources. It includes governments, oil firms, investors and civil society organisations.

 

Gunvor and the trading desks of Statoil and Shell discussed the first steps of how these payments could be disclosed in a telephone call with EITI on Dec. 4.

 

"Our hope is that, in all EITI member countries that have national oil companies that sell oil on behalf of the government, citizens in these countries will have the opportunity to see information about the sale of their oil by NOCs to trading companies," Jonas Moberg, head of the Oslo-based EITI Secretariat, told Reuters.

 

For many countries such as Iraq, the Republic of Congo, Azerbaijan and Nigeria, the majority of oil revenues come from the sale of crude by national oil companies to commodities traders, the EITI said.

 

EITI encourages transparency by tallying up revenues declared by states and comparing them with payments declared by oil and mining firms.

 

Some 49 countries are EITI members, including Nigeria, Iraq and Azerbaijan. They have disclosed around $1.7 trillion in oil, gas and mining revenues collected between 1999 and 2014.

 

The Dec. 4 call included representatives from the government of Switzerland, where many trading houses are based, and non-governmental organisations. The next step is a meeting of the participants in January in London.

 

Trafigura, which was also on the call, discloses its payments to EITI member countries since last year, the first commodities trader to do so.

 

Gunvor spokesman Seth Thomas Pietras said the trading house was considering joining the initiative, while Norway's Statoil, which sits on the EITI board, said it would disclose the payments its oil trading division makes to the national oil companies of EITI member countries if the drive is implemented.

 

Statoil has published payments it makes to EITI governments for more than a decade.

 

Shell, a founding member of the EITI, took part in the call as a representative for oil firms. A company spokesman said it would continue to support the development of EITI guidance.