Beyond the Rhetoric. Measuring revenue transparency: home government requirements for disclosure in the oil and gas industries

This report aims to put the focus back on the direct action that companies can take to support improved transparency of revenue flows in the extractive industries. It is the first known attempt to define a standard for the industry and to assess practice against this standard. The report seeks to capture progress made by companies through voluntary initiatives, but goes further to illustrate what steps should be taken if genuine transparency is to be achieved. It focuses on the upstream oil and gas sectors, but recognises that future phases should also address the mining sector.

The framework for companies covers policy, management systems and performance as appropriate across three categories: revenue payments transparency; supportive disclosure; anti-corruption and whistleblowing. It was developed through consultation with industry and government experts, investors, rating agencies and civil society organisations. A reference group reviewed the development of the framework and commented on drafts of the report. An independent consultancy analysed and ranked 25 companies with operations in six countries (Angola, Azerbaijan, Timor Leste, Indonesia, Nigeria and Venezuela).

Data sources were deliberately limited to those in the public domain, as a key aspect of transparency and to ensure that the information consulted would be available to ordinary citizens. Companies were offered the opportunity to verify the findings. Ten companies responded in detail, three declined to participate and the rest did not provide a definitive response