1. Petter Stigset, 22nd September 2015
The Oil for Development Programme
Sharing the Norwegian Experience
Petter Stigset, 22nd September 2015
INTOSAI WGEI
2nd Meeting, Oslo 21 – 23 September 2015

2. Outline Introduction: the OfD Programme
Relevance of OfD to the Supreme Audit Institutions
The OfD Approach to Responsible Resource Management
Two Country Programmes
Concluding Remarks

3. Sharing the Norwegian Experience
Strategic ownership by the state
Strong and competent institutions
Continual accumulation of technical knowledge
A regulatory system with high respect for the environment, health and safety
A determination to secure national control over the petroleum resources

4. Outline Introduction: the OfD Programme
Relevance of OfD to the Supreme Audit Institutions
The OfD Approach to Responsible Resource Management
Two Country Programmes
Concluding Remarks

5. Synergies and complementarity
Same goal: a rule based, competent transparent and accountable public sector
OfD cooperates with the institutions you audit
Our efforts are complementary
We probably share some of the same challenges and dilemmas

6. Country Programmes, September 2015
Angola
Cuba
Ghana
Iraq
Lebanon
Mozambique
Myanmar
Sudan
South Sudan
Tanzania
Uganda
Candidate Countries
Kenya
Somalia
Bolivia

7. Outline Introduction: the OfD Programme
Relevance of OfD to the Supreme Audit Institutions
The OfD Approach to Responsible Resource Management
Two Country Programmes
Concluding Remarks

8. The OfD Theory of Change
The OfD Theory of Change
Poverty reduction
Responsible management of petroleum resources
There is evidence pointing in the direction that the presence of two factors increase chances that petroleum wealth is managed for the benefit of the poor (World Bank studies referred to in “Rents to Riches” 2011)
Institutional strength and ability to commit and execute over time (“Intertemporal commitment”)
Inclusive decision making
The ultimate aim of the Oil for Development programme is to reduce poverty by promoting economically, environmentally and socially responsible management of petroleum resources. OfD contributes to this goal by providing capacity building targeted at three main outcomes:
1)Policy makers set goals and define and assign responsibilities. The petroleum sector must be structured properly in order for it to be well managed. Sound policies and legislation must be in place, and the responsibilities should be divided in a manner which ensures oversight and minimizes conflict of interest and duplicity of effort. To help partner countries address these issues the OfD programme provides capacity building related to the policies and the legal framework governing the petroleum sector.
2)The authorities regulating the petroleum sector carry out their assigned responsibilities. For the sector to be well managed the authorities must have the capacity and resources to carry out their responsibilities as defined in the legal framework. Given the range of issues involved, there are normally a number of institutions, or units within institutions, counting as petroleum sector authorities. The OfD programme helps build capacity in these institutions mainly through long-term institutional collaboration between Norwegian sector authorities and their respective partner institutions. The capacity development covers a broad range of issues related to the management of the petroleum sector and is provided through “on the job training”, class room teaching, workshops, etc.
3)Policy makers and regulatory authorities are held accountable for their management of the petroleum sector. Accountability is necessary both for preventing wrongdoing and for addressing it where it has occurred. Co-operating with governments, the OfD programme suggests opportunities for transparency and inclusion in both institutional frameworks and their implementation. Parliamentary committees, civil society organizations and media are crucial to holding the executive to account. In order to play a meaningful role these actors must have independence, relevant competence and capacity as well as access to comprehensive and accurate information about the petroleum sector. The OfD programme supports a number of organizations working to enhance such capacity.
A political and legal
framework
The authorities have the required capacity
The authorities are held accountable

9. The Four Components Managing the Petroleum Resources
Legal frameworks for the petroleum sector,
Mapping of resources,
Data management
Resource extraction, enhanced recovery
Strategic environmental impact assessments.
Managing the Revenues
Managing the Environment
Managing the Safety

10. The Four Components Managing the Petroleum Resources
Managing the Revenues
Petroleum fiscal regimes
Sovereign Wealth Fund issues
Macroeconomic and fiscal frameworks,
Revenue administration
Initiatives to promote transparency
Production and publishing of petroleum related statistics
Managing the Environment
Managing the Safety

11. The Four Components Managing the Petroleum Resources
Managing the Revenues
Legal frameworks,
Environmental sensitivity mapping,
Environmental impact assessments,
Emergency preparedness and oil spill response plans,
Compliance monitoring
Issues related to climate change.
Managing the Environment
Managing the Safety

12. The Four Components Managing the Petroleum Resources
Managing the Revenues
Safety legislation and non-legal safety standards
Disaster prevention,
HSE legislation and institutionalization
Three-party cooperation between trade unions, employer unions and the authorities
Managing the Environment
Managing the Safety

13. Min. of Petroleum & Energy Min. of Labour & Social Affairs
Min. of Foreign
Affairs
Min. of Petroleum & Energy
Min. of Climate &
Environment
Min. of Finance
Min. of Labour & Social Affairs
Min. of Transport
Embassies
Norwegian Petroleum Directorate
Norwegian Environment
Agency
Oil Taxation Office
Petroleum Safety Authority
Norwegian Coastal Administration
Norad / OfD Secretariat
Consultants
Statistics Norway
Consultants
The Tax Administration
Local
NGOs
Auditor General of Norway
Norwegian
NGOs
IMF
International
NGOs
EITI
Consultants

14. Basic Criteria for Selection of Partner Countries
A formal request for an OfD Programme
OECD / DAC Country
Significant petroleum production or potential
Norwegian relevance
Identified need for capacity development
Commitment to implementation

15. Outline Introduction: the OfD Programme
Relevance of OfD to the Supreme Audit Institutions
The OfD Approach to Responsible Resource Management
Two Country Programmes
Concluding Remarks

16. OfD in Ghana since 2008
Main focus: legislation and capacity development
2013: a new Petroleum Exploration and Production Bill to Parliament for approval.
Comprehensive training to the new Petroleum Commission, the new upstream regulator
Completion of an SEA after three years of support from the Norw. Environmental Agency
Support to a number of civil society initiatives, incl. the Public Interest and Accountability Committee (PIAC).

17. 25 years of OfD in Nicaragua
Experts from Norwegian institutions have assisted with Nicaragua in five phases of the programme.
Design and implementation of a new regulatory framework
Collection and processing of old data, analysis of new seismic data, creating a petroleum database
Implementing a monitoring system for HSE for offshore operations.
Updating of the National Contingency Plan for Emergencies.

18. Outline Introduction: the OfD Programme
Relevance of OfD to the Supreme Audit Institutions
The OfD Approach to Responsible Resource Management
Two Country Programmes
Concluding Remarks