[This is a joint press release with Publish What You Pay Indonesia]
NEW YORK, 18 December 2019 – U.S.-listed companies ExxonMobil and ConocoPhillips are criticized for failing to disclose recent payments to the Indonesian government in a report released today, coinciding with a new rule-making that should force them to do so.
The U.S. Securities and Exchange Commission is scheduled to propose a new rule today (Wed 18 December) compelling U.S.-listed oil, gas and mining companies to disclose their payments to all governments, globally. The previous rule, which was struck down by Congress early in the Trump presidency, would have implemented section 1504 of the 2010 Dodd-Frank Act. If proposed today as expected, the rule will be subject to a public
comment period before being adopted likely in 2020.
The SEC’s decision today coincides with the release of a report revealing how ExxonMobil and ConocoPhillips have failed to publish data on payments made to the Indonesian government in 2017 and 2018. The public only currently have access to information on their 2016 payments.
The report by the Natural Resource Governance Institute and Publish What You Pay Indonesia studied payment information released under laws in the European Union, Canada and Norway, regarding “payments-to-governments” disclosures. Those laws were modeled after the U.S.’ Dodd-Frank Section 1504, but the U.S. law has never been enforced due to legal disputes surrounding the rule. U.S. companies have therefore had no legal obligation to disclose this information.
Both ExxonMobil and ConocoPhillips officially support the Extractive Industries Transparency Initiative (EITI), a program aimed at improving transparency and management of the corruption-prone natural resources sector. ExxonMobil has occupied a seat on the EITI board as either a primary or alternate member since the initiative began. The EITI makes clear that companies should disclose all payments systematically to countries like Indonesia which implement the initiative.
Joseph Williams, advocacy manager for NRGI, said:
“Companies want to have the public relations value of being inside the global transparency movement, but when it comes to action, some U.S. companies like ExxonMobil and ConocoPhillips are failing. Companies which support and sit on the EITI board should be leaders, not laggards, in transparency. They should disclose their recent payments.
“In the absence of voluntary disclosure which would provide Indonesian citizens with vital and timely information to hold their government to account, a strong SEC rule which forces them to do so is the only solution” said Williams. “The SEC’s new rule needs to build upon and align with similar laws in Europe and Canada – this means requiring disclosure of timely payment information detailed for each company and each of their projects with no exemptions.”
The report, Indonesia’s Oil and Gas Revenues: Using Payments to Governments Data for Accountability, details how in 2018, ten oil and gas companies disclosed payments totaling $5.4 billion to Indonesian government entities. This figure does not include payments from ExxonMobil and ConocoPhillips which are likely to have been substantial.
The report and the U.S SEC ruling come at a time when Indonesia’s oil and gas sector is undergoing a major transformation, with payment provisions changing and possibly resulting in greater amounts due to the government. The report details how these changes increase the need for oversight over revenues, and how media, civil society organizations and others in Indonesia can best use this new data to hold the government to account.
Notes:
NRGI asked ExxonMobil and ConocoPhillips to publish their 2017 and 2018 payments to the Indonesian government. ExxonMobil declined to publish the information. NRGI is in an ongoing dialogue with ConocoPhillips to address the issue.
NRGI maintains a database of payments to governments reports submitted by companies under European and Canadian legislation, including all payment data cited in the new report. The information is converted into open data and is available at www.resourceprojects.org.
For more information, a copy of the report (which will be published on 18 December) or interviews, contact:
Lee Bailey
Communications Director
London
[email protected]
+44 (0)7823 442 954
or
Louise Orton
+44 (0)7939 141764
NEW YORK, 18 December 2019 – U.S.-listed companies ExxonMobil and ConocoPhillips are criticized for failing to disclose recent payments to the Indonesian government in a report released today, coinciding with a new rule-making that should force them to do so.
The U.S. Securities and Exchange Commission is scheduled to propose a new rule today (Wed 18 December) compelling U.S.-listed oil, gas and mining companies to disclose their payments to all governments, globally. The previous rule, which was struck down by Congress early in the Trump presidency, would have implemented section 1504 of the 2010 Dodd-Frank Act. If proposed today as expected, the rule will be subject to a public
comment period before being adopted likely in 2020.
The SEC’s decision today coincides with the release of a report revealing how ExxonMobil and ConocoPhillips have failed to publish data on payments made to the Indonesian government in 2017 and 2018. The public only currently have access to information on their 2016 payments.
The report by the Natural Resource Governance Institute and Publish What You Pay Indonesia studied payment information released under laws in the European Union, Canada and Norway, regarding “payments-to-governments” disclosures. Those laws were modeled after the U.S.’ Dodd-Frank Section 1504, but the U.S. law has never been enforced due to legal disputes surrounding the rule. U.S. companies have therefore had no legal obligation to disclose this information.
Both ExxonMobil and ConocoPhillips officially support the Extractive Industries Transparency Initiative (EITI), a program aimed at improving transparency and management of the corruption-prone natural resources sector. ExxonMobil has occupied a seat on the EITI board as either a primary or alternate member since the initiative began. The EITI makes clear that companies should disclose all payments systematically to countries like Indonesia which implement the initiative.
Joseph Williams, advocacy manager for NRGI, said:
“Companies want to have the public relations value of being inside the global transparency movement, but when it comes to action, some U.S. companies like ExxonMobil and ConocoPhillips are failing. Companies which support and sit on the EITI board should be leaders, not laggards, in transparency. They should disclose their recent payments.
“In the absence of voluntary disclosure which would provide Indonesian citizens with vital and timely information to hold their government to account, a strong SEC rule which forces them to do so is the only solution” said Williams. “The SEC’s new rule needs to build upon and align with similar laws in Europe and Canada – this means requiring disclosure of timely payment information detailed for each company and each of their projects with no exemptions.”
The report, Indonesia’s Oil and Gas Revenues: Using Payments to Governments Data for Accountability, details how in 2018, ten oil and gas companies disclosed payments totaling $5.4 billion to Indonesian government entities. This figure does not include payments from ExxonMobil and ConocoPhillips which are likely to have been substantial.
The report and the U.S SEC ruling come at a time when Indonesia’s oil and gas sector is undergoing a major transformation, with payment provisions changing and possibly resulting in greater amounts due to the government. The report details how these changes increase the need for oversight over revenues, and how media, civil society organizations and others in Indonesia can best use this new data to hold the government to account.
Notes:
NRGI asked ExxonMobil and ConocoPhillips to publish their 2017 and 2018 payments to the Indonesian government. ExxonMobil declined to publish the information. NRGI is in an ongoing dialogue with ConocoPhillips to address the issue.
NRGI maintains a database of payments to governments reports submitted by companies under European and Canadian legislation, including all payment data cited in the new report. The information is converted into open data and is available at www.resourceprojects.org.
For more information, a copy of the report (which will be published on 18 December) or interviews, contact:
Lee Bailey
Communications Director
London
[email protected]
+44 (0)7823 442 954
or
Louise Orton
+44 (0)7939 141764