The majority of resource rich countries have registry databases to help them manage their extractive industry licensing systems. Publication of license registers and related information on extractive rights enable citizens to see which companies have been awarded rights to exploit their natural resources.
Keeping an accurate registry system is also essential to encourage investment, to optimise the sector’s contribution to the country, to clarify property rights, and to avoid conflicts over the ownership and location of tenements.
The term license in this context refers to any license, lease, title, permit, or concession by which the government confers on a company(ies) or individual(s) rights to explore or exploit oil, gas and/or mineral resources.
Implementing countries are required to maintain a publicly available register or cadastre system(s) with the following timely and comprehensive information regarding each of the licenses pertaining to companies covered in the EITI Report:
license holder(s);
coordinates of the license area;
date of application, date of award and duration of the license; and
license holder(s);
It is expected that the license register or cadastre includes information about licenses held by all entities, including companies and individuals or groups that are not included in the EITI Report, i.e. where their payments fall below the agreed materiality threshold. Where there are significant legal or practical barriers preventing such comprehensive disclosure, this should be documented and explained in the EITI Report, including an account of government plans for seeking to overcome such barriers and the anticipated timescale for achieving them.
Where the information set out in 3.9(b) above is already publicly available, it is sufficient to include a reference or link in the EITI Report. Where such registers or cadastres do not exist or are incomplete, the EITI Report should disclose any gaps in the publicly available information and document efforts to strengthen these systems. In the interim, the EITI Report itself should include the information set out in 3.9(b) above.
License register in Norway
Norway’s Petroleum Register is maintained by the Norwegian Petroleum Directorate. Data is entered in the Petroleum register on an on-going basis, and is copied daily to the online FactPages.
License overview in Togo
In its 2011 EITI Report, Togo included an overview of all licenses held by the companies covered in the EITI Report, including information such as the commodity being explored and/or produced, license reference numbers, and the duration of the license.
As per the Standard Terms of Reference for Validators:
The validator is expected to document whether the information set out in provision 3.9.b.i-iv or 3.9.c has been disclosed for all the licenses held by companies covered in the EITI reporting process (3.9.b).
The validator is expected to document whether the information set out in provision 3.9.b.i-iv is also available for the licenses held by entities not covered by the EITI reporting process, and if not, document the reasons for any gaps (3.9.b-c). Comprehensive disclosure is expected, but not required for compliance with the EITI Standard. Where information about licenses held by entities not covered by the EITI reporting process is missing, the validator is expected to evaluate whether the MSG has documented and explained the barriers to provision of this information and any government plans to overcome these barriers.
