{"id":14341,"date":"2024-06-05T09:25:03","date_gmt":"2024-06-05T09:25:03","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=14341"},"modified":"2024-06-05T09:25:03","modified_gmt":"2024-06-05T09:25:03","slug":"now-is-the-time-for-namibia-to-join-extractive-industries-transparency-initiative-eiti","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/now-is-the-time-for-namibia-to-join-extractive-industries-transparency-initiative-eiti\/","title":{"rendered":"Now is the Time for Namibia to Join Extractive Industries Transparency Initiative (EITI)"},"content":{"rendered":"\n

By NJ Ayuk, Executive Chairman, African Energy Chamber <\/em><\/p>\n\n\n\n

Namibia has four onshore and four offshore basins that are estimated to contain 11 billion barrels of oil (boe) and 2.2 trillion cubic feet (tcf) of natural gas. Several recent oil discoveries have made the country an attractive target for oil companies. <\/p>\n\n\n\n

The Namibian government has pledged to support field development to achieve production by 2026. If the finds are commercially viable, they could more than double the country’s GDP by 2040.<\/p>\n\n\n\n

In this ripe environment, it\u2019s important to note that Namibia has several financial accountability measures already in place \u2014 an existing governance structure that is very transparent, working anti-corruption laws, and requirements for the publishing of any payments to the state. Membership in the Extractive Industries Transparency Initiative (EITI) could put the final piece of Namibia\u2019s transparency efforts in place and make the nation\u2019s oil and gas industry a model of openness.<\/p>\n\n\n\n

The Principles of EITI<\/strong><\/p>\n\n\n\n

EITI believes that a country\u2019s natural resources belong to its citizens and should benefit them by supporting economic growth, development, and poverty reduction. To that end, since 2003, the organization has promoted the open and accountable management of oil, gas, and mineral resources. Financial transparency, EITI says, can enhance investment environments, which leads to more opportunity for people and governments.<\/p>\n\n\n\n

More than 50 countries are EITI members, committed to \u201cdisclosing information along the extractive industry value chain \u2014 from how extraction rights are awarded, to how revenues make their way through government and how they benefit the public.\u201d<\/p>\n\n\n\n

The organization believes that peace and prosperity rather than conflict and division are promoted when there is a wall of better governance around extractives.<\/p>\n\n\n\n

Why This Matters for Namibia<\/strong><\/p>\n\n\n\n

There\u2019s no question that Namibia is experiencing an oil and gas boom. There are several deals in the books and more exploration on the horizon.<\/p>\n\n\n\n

For example, Galp Energia\u2019s Mopane discovery in Petroleum Exploration Lease (PEL)-83 in the Orange Basin off Namibia\u2019s coast may prove to be one of the planet\u2019s biggest offshore discoveries.<\/p>\n\n\n\n

The company finished drilling two exploratory wells this year, with both showing substantial light oil columns and high pressures. Galp estimates hydrocarbons contained within Mopane at 10 billion barrels of oil (Bboe) or more, excluding any future exploration of the complex.<\/p>\n\n\n\n

Nearby, NAMCOR, the National Petroleum Corporation of Namibia, and Custos Energy \u2014 a Namibian independent oil and gas exploration company \u2014 each control a 10% working interest in the PEL-82\u2019s Walvis Basin, where U.S. oil giant Chevron has an 80% working interest. Exploratory drilling is slated to begin in Q4 of this year.<\/p>\n\n\n\n

Encouragingly, Custos has signed a cooperation agreement with the Walvis Bay Poverty Reduction Trust (WBPRT), which is focused on alleviating poverty in the community through corporate social responsibility funding.<\/p>\n\n\n\n

In addition, Angola\u2019s Azule Energy is acquiring a 42.5% stake in an exploration project by NAMCOR, South African exploration company Rhino Resources, and local company Korres Investments in Block 2914A of the Orange Basin.<\/p>\n\n\n\n

With this deal, Azule, a bp-Eni joint venture, is investing beyond Angola for the first time.<\/p>\n\n\n\n

For these and future Namibian projects, EITI membership can provide valuable safeguards against the corruption around extractives revenues that\u2019s been seen in other countries, including on our own continent.<\/p>\n\n\n\n

Despite Issues,<\/strong>EITI\u2019s Value Continues<\/strong><\/p>\n\n\n\n

EITI is a strong organization whose members have seen a significant decrease in corruption after instituting its standards. It has given citizens the power to hold their governments accountable for how they use resource wealth.<\/p>\n\n\n\n

But one thing about it does give me pause: Glencore Plc\u2019s continued representation on EITI\u2019s board is a sore spot. In 2022, Glencore pleaded guilty to seven counts of bribery after investigations by the U.S., the U.K., and Brazil revealed that the company paid bribes to secure access to oil in six African countries. Glencore paid 1.5 billion USD in fines to the US and UK government. I am proud the African Energy Chamber led the campaign against Glencore and its outrageous behavior.<\/p>\n\n\n\n

Instead of board positions, the multinational commodities and mining firm\u2019s executives should be held personally<\/em> accountable for its proven long-lasting and widespread corruption, as Enron\u2019s were early in the 2000s. Imagine if this was a Namibian or African company. They would have been buried.<\/p>\n\n\n\n

I agree with Eric Ini, who made it clear in Minnesota Reformer last year that it is wrong for governments to continue to do business with Glencore.<\/p>\n\n\n\n

Glencore is not alone. Gunvor corruption scandal in Congo involved allegations of bribery and corruption in the country\u2019s oil sector. Gunvor, one of the world\u2019s largest oil traders, was accused of paying bribes to Congolese officials to secure favorable oil deals. Gunvor denied the allegations but agreed to pay a fine of nearly $95 million to settle the case.<\/p>\n\n\n\n

Equinor, an international oil company headquartered in Norway and majority-owned by the Government of Norway, after corruption investigations, agreed to pay a total of $21 million to settle criminal and administrative charges for violating the anti-bribery and books-and-records provisions of the U.S. Foreign Corrupt Practices Act (\u201cFCPA\u201d).<\/p>\n\n\n\n

Despite this disappointing situations, membership in EITI continues to be beneficial and would serve the Namibian people. It would open the door to enhanced accountabilities for all stakeholders working in the country, give civil society a stronger voice, and help ensure that Namibian oil discoveries translate into tangible improvement in citizens\u2019 lives.<\/p>\n\n\n\n

No Time Like the Present<\/strong><\/p>\n\n\n\n

Namibia has so much to gain from its vast hydrocarbon resources.<\/p>\n\n\n\n

There is lots of room for the growth of oil and gas within Namibia\u2019s power generation mix since most of the country\u2019s electricity is currently generated by hydropower.<\/p>\n\n\n\n

And as shown by recent upticks in exploration and discovery, Namibia\u2019s offshore oil fields have become a focus for significant investment, in no small part through the government\u2019s efforts.<\/p>\n\n\n\n

With such large amounts of revenue in view, the need for oversight and accountability will be greater than ever. EITI membership could be instrumental in providing both.<\/p>\n","protected":false},"excerpt":{"rendered":"

By NJ Ayuk, Executive Chairman, African Energy Chamber Namibia has four onshore and four offshore basins that are estimated to contain 11 billion barrels of oil (boe) and 2.2 trillion … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":14342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7445,11],"tags":[712,853,1675],"class_list":["post-14341","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-southern-africa","category-top-news","tag-eiti","tag-extractive-industries-transparency-initiative","tag-namibia","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Namibia-PEL85.jpg?fit=495%2C290&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3Jj","jetpack-related-posts":[{"id":1569,"url":"https:\/\/www.oilnewskenya.com\/index.php\/seychelles-accepted-as-extractive-industries-transparency-initiative-candidate\/","url_meta":{"origin":14341,"position":0},"title":"Seychelles accepted as Extractive Industries Transparency Initiative Candidate","author":"Samuel Kamau Mbote","date":"August 6, 2014","format":false,"excerpt":"Seychelles has been accepted by the Extractive Industries Transparency Initiative (EITI) Board as a\u00a0Candidate country\u00a0to the EITI, the global transparency\u00a0standard. Seychelles joins 45 other countries that have signed up to the EITI Standard, which requires extensive disclosure and measures to improve\u00a0accountability\u00a0in how oil, gas and\u00a0minerals\u00a0are managed. A candidature country is\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8797,"url":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-applies-for-eiti-membership\/","url_meta":{"origin":14341,"position":1},"title":"Uganda Applies for EITI Membership","author":"","date":"August 10, 2020","format":false,"excerpt":"Uganda is preparing to join, the global standard for the promotion of transparency and good governance in the management of oil, gas and mineral resources, the\u00a0extractive\u00a0industries transparency initiative (EITI) after it submitted its application last month. According to EITI Uganda's candidature application form, together with supporting documentation, were approved by\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/01\/sedimentary-basins-of-Uganda.jpg?fit=504%2C555&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":12339,"url":"https:\/\/www.oilnewskenya.com\/index.php\/energy-lobby-calls-for-glencores-eiti-membership-withdrawal-following-guilty-plea-to-market-manipulation-bribery-corruption\/","url_meta":{"origin":14341,"position":2},"title":"Energy Lobby Calls for Glencore\u2019s EITI Membership Withdrawal Following Guilty Plea to Market Manipulation, Bribery & Corruption","author":"","date":"June 13, 2022","format":false,"excerpt":"The African Energy Chamber (AEC) is calling for the Extractive Industries Transparency Initiative (EITI) to terminate the membership of Switzerland-based commodities and mining multinational Glencore following Glencore\u2019s recent guilty plea to multiple charges of market manipulation, bribery and corruption. Pleading guilty on May 24 following an investigation by Brazil, the\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/06\/Glencore.png?fit=1035%2C604&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/06\/Glencore.png?fit=1035%2C604&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/06\/Glencore.png?fit=1035%2C604&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/06\/Glencore.png?fit=1035%2C604&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":2403,"url":"https:\/\/www.oilnewskenya.com\/index.php\/burundi-commits-to-implement-the-eiti\/","url_meta":{"origin":14341,"position":3},"title":"Burundi commits to implement the EITI","author":"Samuel Kamau Mbote","date":"February 4, 2015","format":false,"excerpt":"The Government of the Republic of Burundi formally committed to implement the Extractive Industries Transparency Initiative, EITI Standard in a declaration\u00a0published by Come Manirakiza, Minister of Energy and Mine on 20 January 2015 in Bujumbura. According to Manirakiza, Burundi hopes that this will increase transparency in the management of natural\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/02\/burundi.jpg?fit=225%2C225&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4330,"url":"https:\/\/www.oilnewskenya.com\/index.php\/lobby-groups-in-uganda-push-for-more-transparency-in-oil-sector\/","url_meta":{"origin":14341,"position":4},"title":"Lobby Groups in Uganda Push For More Transparency in Oil Sector","author":"","date":"February 8, 2016","format":false,"excerpt":"Three lobbying groups namely Global Rights Alert, ActionAid Uganda and Transparency International have kick started an online petition to push for transparency from the Uganda government and international oil companies. 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