In reference to the draft Rule voted by the SEC that would require resource extraction issuers to disclose payments made to the U.S. federal government or foreign governments for the commercial development of oil, natural gas or minerals, Eni supports the goal of enhancing transparency over payments to Governments in the extractive industry and the need for a global standard on transparency for all companies to comply with.
We believe it is part of our responsibility towards society in the countries where we operate and it is a powerful driver for more stable and fair business environments, too. We have been an active member of the Extractive Industries Transparency Initiative (EITI ) since 2005, contributing to the exceptional growth of the Initiative, now being implemented by 48 countries.
With our business partners (Governments, State-owned Companies and private companies), we have shared our commitment to transparency and obtained their consent for us to voluntary disclose 2014 payments, investments and revenues, prior to the entry into force of the EU Directives. We have, therefore, been able to disclose data on Nigeria, Pakistan, Iraq, Ecuador, Indonesia and Timor Leste, among other countries, collectively contributing to 38% of our production in 2014.
Meanwhile we have continued to share our data on payments to governments necessary to reconcile the financial flows in the EITI implementing countries, contributing to the issuing of country reports in Kazakhstan, Mozambique, the Republic of the Congo and more.
While we work towards compliance with the EU Directives in 2017, we are reiterating efforts to bring more partners aboard and expand our voluntary disclosure over 2015 payments. We have seen the development of several legislative initiatives on extractive transparency in different jurisdictions (EU, USA, Canada, Norway), creating diverse disclosure obligations for companies and a substantial asymmetry between companies subject to or instead free from disclosure requirements.
We believe the new Rule proposed by the SEC in the USA goes in the direction of levelling the field in the industry, imposing requirements that are in line with the ones that we are bound to in the European Union.
We believe our industry should contribute to enhancing the transparency over the revenues generated by our operations in the interest of a more inclusive resource governance. In parallel to industry’s efforts, it is also essential to support host countries’ transparency over the revenues generated by natural resources. Both elements are fundamental building blocks of good resource governance and are key to foster better decision-making over public revenues.