2011 Report on Promoting Revenue Transparency (PRT) in Oil & Gas companies
Transparency International (TI) and Revenue Watch Institute (RWI), in the Report on Promoting Revenue Transparency of 44 oil & gas companies, have given the BG Group (UK) the highest score (93%) for Reporting on Anti-Corruption Programmes, Oil and Natural Gas Corporation (India) the highest score (100%) for Organisational Disclosure and Statoil (Norway) the highest score (69%) for Country-Level Disclosure for International Operations. Petronas’ respective scores were 30% (average score was 43%), 38% (average score was 65%) and 0% (average score was 16%).
The table for the results is attached, and the report is available at: www.transparency.org.
Reporting on Anti-Corruption Programmes refers to companies’ reporting on their anti-corruption programmes according to the TI-UN Global Compact Reporting Guidance on the 10th Principle against Corruption. Organisational Disclosure measures reporting on companies’ organisational structure, operations, partnerships and standards used for published financial accounts. Country-level disclosure refers to companies’ reporting on meaningful country-level financial and technical data relating to their international operations.
No combined cross-section score or ranking could be calculated as there was little correlation between the measures. Data was based exclusively on publicly available information or documents. Preliminary data was shared with the companies for their responses.
44 major oil & gas companies (20 international and 24 national oil companies; 33 are globally important large producers and 11 locally important national oil companies), based in 30 countries and producing in 73 host countries were studied. Globally, those companies are responsible for 60% of oil and 55% of natural gas reserves and 60% of oil and 60% of natural gas production.
The report aims to promote accountability in resource-rich countries by improving awareness of the importance of revenue transparency of major oil & gas companies. (The Revenue Watch Index refers to governments). Oil & gas producers generate and transfer considerable funds to national and host governments. Natural resources wealth can fuel large-scale corruption and mismanagement, if not properly managed. Transparent and accountable management of resources and revenues is fundamental to economic development and the public good.
The report highlights the need for Petronas to significantly improve transparency and better public disclosure. TI-Malaysia calls on Petronas to promptly heed and remedy the highlighted weaknesses. This is necessary in order to assure the Malaysian public that national and international resources of which Petronas is custodian, are being managed with transparency, integrity and good governance in the interests of Malaysia and its citizens.
Issued by
Datuk Paul Low
President
Transparency International – Malaysia
