Good Governance of the National Petroleum Sector

The Good Governance of the National Petroleum Sector project was developed jointly by researchers from Chatham House and the Centre for Energy, Petroleum and Mineral Law Policy (CEPMLP) at the University of Dundee, with the ultimate goal of addressing the need for practical guidelines and benchmarks through a series of workshops and discussions, as well as two publications: Principles of Good Governance and Guidelines for Best Practice. The aim of the project was to help enable national decision-makers to govern the exploitation of their hydrocarbon resources for the greatest socio-economic benefit.

This project took as its starting point the fact that good governance is more likely to be achieved if all stakeholders share an understanding of what good governance requires in practice. In spite of several published codes of conduct and governance initiatives led by western countries, producers have until now lacked a forum which takes into account their specific circumstances and development agendas. 

The establishment of principles and formulation of the governance benchmarks was based on a producer-led process of self-examination, experience sharing and consolidation. This process was achieved through a series of high-level workshops, participant working groups and in-country seminars.

The project convened participants from 20 oil-exporting countries, together with international oil company representatives, non-governmental organizations and others. This dialogue has helped to build shared understanding and bridge cultural differences. The research, workshops and case studies have established that, while there is no ideal model for petroleum sector governance, there are certain essential functions and universal principles which transcend national boundaries.

The case studies demonstrated that each country's context, including their culture, politics and level of development, is critical in determining the structure and priorities for the petroleum sector. The two project publications are designed as practical tools for producers, as well as a foundation for future debate. Revenue Watch expects that these texts will evolve as new information and consensus emerges across the extractives sector.

Find more information about the Good Governance of the National Petroleum Sector at Chatham House or about the activities of CEPMLP.