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The Azerbaijan government has formally agreed to disclose revenues received from oil and gas companies.
Under a memorandum of understanding, the government will work closely with the Extractive Industries Transparency Initiative (EITI), a multi-stakeholder group that aims to help developing countries and the extractive industries to find a mutually acceptable way of publicly disclosing payments made to the state by oil and gas companies.
The initiative was set up in 2003 by the UK government in the belief that greater transparency will deter some states from covertly misusing oil and gas revenues.
Azerbaijan’s decision to reveal its revenues is further evidence that EITI is making headway in at least some developing countries, in addition to the support it has received from companies, pressure groups and western governments.
Last year Angola agreed to reveal details of a ‘signature bonus’ payment received from the US oil company ChevronTexaco and since then, under international pressure, the Democratic Republic of Congo and Gabon have also taken initial steps towards adopting EITI principles.
The Azerbaijan memorandum commits the government, non-governmental organizations and oil companies, including BP and the state oil company Socar, to appoint an auditor to report on any such receipts within the next few months, and thereafter every six months.
The EITI is also making advances in Latin America, where Peru’s government recently requested a briefing on its principles, and in the Caribbean, where ministers from Trinidad and Tobago have said they want to explore implementation for oil and gas companies.
In Nigeria, where there are major concerns about corruption, a government-supported National Stakeholder Working Group on EITI recently appointed the Goldwyn International Strategies consultancy to advise on how to move forward.
Next month interested parties in the EITI will gather at an international conference in London to review progress.
Under a memorandum of understanding, the government will work closely with the Extractive Industries Transparency Initiative (EITI), a multi-stakeholder group that aims to help developing countries and the extractive industries to find a mutually acceptable way of publicly disclosing payments made to the state by oil and gas companies.
The initiative was set up in 2003 by the UK government in the belief that greater transparency will deter some states from covertly misusing oil and gas revenues.
Azerbaijan’s decision to reveal its revenues is further evidence that EITI is making headway in at least some developing countries, in addition to the support it has received from companies, pressure groups and western governments.
Last year Angola agreed to reveal details of a ‘signature bonus’ payment received from the US oil company ChevronTexaco and since then, under international pressure, the Democratic Republic of Congo and Gabon have also taken initial steps towards adopting EITI principles.
The Azerbaijan memorandum commits the government, non-governmental organizations and oil companies, including BP and the state oil company Socar, to appoint an auditor to report on any such receipts within the next few months, and thereafter every six months.
The EITI is also making advances in Latin America, where Peru’s government recently requested a briefing on its principles, and in the Caribbean, where ministers from Trinidad and Tobago have said they want to explore implementation for oil and gas companies.
In Nigeria, where there are major concerns about corruption, a government-supported National Stakeholder Working Group on EITI recently appointed the Goldwyn International Strategies consultancy to advise on how to move forward.
Next month interested parties in the EITI will gather at an international conference in London to review progress.
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