Global Witness - Breaking the links between natural resources, conflict and corruption
StatoilHydro's Libyan corruption scandal shows need for oil industry disclosure laws
Report – 20/11/2008
A scandal over questionable oil industry payments in Libya, brought to light by the giant Norwegian company StatoilHydro, underlines the need for tougher regulations to deter companies from making undisclosed payments in return for access to oil rights.
The scandal has revealed questionable payments to consultants in Libya in the early 2000s by a company now controlled by StatoilHydro, and similar payments by Spain's Repsol YPF and France's Total. It also revealed that in Angola, StatoilHydro is in partnership with a local private oil company despite suspicions that the company's undisclosed owners may include government officials, in a country perceived to be one of the most corrupt in the world.
Opacity and secrecy have provided a cover for the deep corruption that brings poverty, bad government and human suffering to many oil-producing countries, so StatoilHydro has set a welcome example of openness in its handling of this scandal which has not been emulated so far by either Repsol or Total.
But the scandal shows that oil companies cannot necessarily be relied on to come clean about how they win access to oil reserves, even where there is a serious risk of corruption. To avoid a destructive race for the world's remaining supplies of oil and minerals, tougher regulation is needed to shine light on hidden payments and secret deals.
Other Languages
Downloads
Latest Publications
September 2010
Global Witness stands by findings on Sudanese oil data
Global Witness today refuted claims that it had apologized for the findings of its September 2009 report, Fuelling Mistrust, on the lack of transparency in Sudan's oil sector. The organisation said that although very important commitments on improving transparency were made recently by the Government of National Unity (GoNU), the full disclosure of oil revenue data and the results of an independent audit remain necessary to prove the concerns were unfounded.
August 2010
Global Witness welcomes Norwegian government disinvestment from predatory loggers Samling
Global Witness welcomes the Norwegian Government Pension Fund's decision to disinvest from the notorious Malaysian timber giant Samling. Global Witness has previously exposed illegal logging by Samling in Cambodia as well as evidence of legal breaches by two Samling-associated companies in Liberia.
Global Witness welcomes new commitment to transparency in Sudan
Global Witness has participated in a landmark seminar on oil revenue transparency in Khartoum, organised by the Sudanese government and attended by foreign oil companies. We welcome the commitment to increase transparency, including an audit of the oil sector and publication of key production and revenue figures.
Global Witness applauds RBS penalty over terrorist financing
Global Witness welcomes the decisive action taken by the UK financial regulator, the FSA, which has fined the Royal Bank of Scotland (RBS) £5.6 million for failing to check whether its customers were on the UK terrorist sanctions list.
Campbell testimony shines light on blood diamonds and the importance of international justice
Global Witness is attending the trial of former Liberian President Charles Taylor in The Hague as supermodel Naomi Campbell is called to testify. The event offers a useful reminder of the role of natural resources in funding conflict, and of the importance of pursuing justice for the victims of war crimes and crimes against humanity.
