The aim of this project is to provide producing country governments with guidelines on managing their hydrocarbon resources for the greatest socio-economic benefit.

A joint Chatham House - CEPMLP Project

This project was the first producer-centred initiative, in which government and national oil company decision-makers have been able to identify governance challenges and share best practice. Other participants, whose support for national good governance is vital, included international oil companies, multilateral and private financing agencies and concerned non profit making organisations.

Project Outputs

Good Governance Workshop Series

The Good Governance panel of experts brought together participants from over 20 oil and gas producing countries for a series of three high-level intensive workshops. At the first workshop, participants formed a consensus on principles which should guide governance in the sector: clarity of roles and responsibilities, enablement, transparency, accountability and sustainability. The second workshop was based around producing-country case studies, giving insights into practical experience of governance in each of these five areas. Throughout both workshops, participants emphasized the importance of the national context on systems of governance. The third and final workshop compared current governance conditions with country aspirations and identified ways to move up the good governance curve under varying political, economic and organizational conditions. More information.

Good Governance Reports

The project's conclusions are summarized in Good Governance of the National Petroleum Sector (Document). This document presents five universally applicable principles and forty benchmarks to help producers assess their systems of governance. The more detailed report, Good Governance of the National Petroleum Sector (Report), provides examples from country case studies and offers context-specific checklists and guidance for the petroleum sector policy- or strategy-maker. The report is intended as a 'living text' for good governance debates around the world, and can be revised to reflect future discussions and comments from petroleum sector stakeholders.

The results of this project have since been drawn upon by the Norwegian Agency for Development Cooperation (Norad), an arm of the Norwegian Ministry of Foreign Affairs, to form its own Petroleum Sector Governance Check-List. This and other relevant resources can be found on Norad's Oil for Development website. View.

Future Workshops

The Good Governance team is able to facilitate ad-hoc workshops in oil and gas producing countries whereby they share project findings and enable participants to draw on international experience to address the challenges of their own petroleum sector.

Publications

• Creating a National Oil Company in East Timor: Building on the Experience of Other Producers
  Dubai School of Government Report
  Valerie Marcel, January 2011
   
• Good Governance of the National Petroleum Sector
  Chatham House Document
  Glada Lahn, Valerie Marcel, John Mitchell, Keith Myers, Paul Stevens, March 2007
   
• Good Governance of the Petroleum Sector
  Chatham House Report
  Glada Lahn, Dr Valerie Marcel, John Mitchell, Dr Keith Myers, Paul Stevens, April 2007
   
• Good Governance of the National Petroleum Sector
  Chatham House and CEPMLP Interim Report
  Edited by Keith Myers and Glada Lahn; contributions from Valerie Marcel, John Mitchell, Willy Olsen and Paul Stevens, December 2005

Additional Resources

The Norwegian Agency for Development Cooperation (Norad) Oil for Development

The World Bank's Oil, Gas and Mining Sustainable Community Development Fund (CommDev)

Contact

To find out more about this project, please contact:

Professor Paul Stevens, Senior Research Fellow, EEDP
+44 (0)20 7314 3618
Email Paul Stevens

Valerie Marcel, Associate Fellow, Energy, Environment and Development Programme
+1 (416) 925 7461
Email Valerie Marcel