1. Overview of Extractive Industries Governance Michael Levitsky (COCPO)
EXTRACTIVE INDUSTRIES: LEGAL AND FISCAL REGIMES, REVENUE MANAGEMENT AND GOOD GOVERNANCE Training Workshop May 16, 2007
Overview of
Extractive Industries Governance
Michael Levitsky (COCPO)

2. EI Training Workshop Why are we here? A few thoughts on “governance”
What is special about EI?
A few thoughts on “governance”
And overview of agenda
Special topic
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3. Governance of EI
Governance of EI is important, but so is governance of all major economic sectors.
What is special about EI?
Exhaustible resources
Belong to all citizens
Large revenues
Large investments
Long term projects
Volatility of prices and revenues
Uncertainty in project outcomes
Environmental and safety risks

4. Five Universal Principles of Good Governance
Source: Good Governance of the National Petroleum Sector, Chatham House, Apr 2007

5. A Generic Demarcation of Functions Between Principal Actors in the Petroleum Sector
Source: Good Governance of the National Petroleum Sector, Chatham House, Apr 2007

6. Governance as an Emergent Phenomenon
Not simple
Hard to quantify
Legal-Fiscal Framework
Institutional Framework
Revenue Management
Environment
Transparency
Communities
In Agenda

7. Governance is a Process

8. Good Governance is a result of getting all the individual components to work and connect: it is not simple, easy or quick. Chatham House has 40 Petroleum Governance Benchmarks
Legal-Fiscal Framework
Institutional Framework
Revenue Management
Environment
Transparency
Communities
Legal-Fiscal Framework
Institutional Framework
Revenue Management
Environment
Transparency
Communities

9. Commercial Break

10. Petroleum Governance Initiative Background
In context of Norwegian Oil for Development Initiative
Enhance cooperation between the World Bank and Norway
Address issues additional to Norway’s programs
Coordinate work across World Bank range of skills
Broaden scope of country interventions
US$6 million over two years

11. Community Development
PGI: Three Pillars
P.G.I.
Sector Governance
Environment
Community Development

12. PGI: Strategy
Practical
Focused
Sustainable
Innovative

13. PGI: Governance Pillar Goals
Develop and disseminate best practice in Petroleum Sector Governance
Combine World Bank’s sector (COC) and broader economic skills (PREM/DEC)
Integrate Norwegian experience of oil and gas sector management
Provide comprehensive WB assistance to several countries, complementary to Norway
Activities: Seminars, publications, technical assistance

14. PGI: Governance Pillar Proposed Activities
Oil and Gas Governance Sourcebook
Book covering all aspects
Written by specialists, discussed at seminars
Actionable Indicators for “Oil and Gas and Economic Development”
Designed to provide benchmarking tool for countries with oil and gas resources
Resource Curse” diagnostic and prevention tool
Thematic Group on “Extractive Industries and Economic Development”
Based on WB Thematic Group concept
Bring together sector specialists, economists, others
Country Activities
Please join !

15. Thank You!
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