oil for development

Oil for Development

Aberdeen 14/09/2010John Tore Vatnar, NORAD

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Oil for Development (OfD)

Our vision:• Assist developing countries with

petroleum resources in their efforts to manage these resources in a way that generates economic growth, promotes the welfare of the population and is environmentally sustainable

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Core countries

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• Assistance is based on requests from governments

• The requests will be assessed based on certain criteria, including; petroleum potential, commitment to good governance of the petroleum sector, relevance of Norwegian experiences and capacity within OfD

• OfD shares Norwegian experiences and international best practice. Each country has to create its own policy based on own circumstances

• Long-term perspective

• Holistic approach

OfD –how we work

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• The Steering Committee for the program consists of four government ministries (Ministry of Foreign Affairs, Petroleum and Energy, Environment, and Finance), and is chaired by the Ministry of Foreign Affairs

• The program is coordinated by the Oil for Development secretariat in Norad

• The main institutions involved in implementation of the program are the Norwegian Petroleum Directorate, the Norwegian Pollution Control Authority, the Directorate for Nature Management, the ministries represented in the Steering Committee, Petrad, consultancies and research institutions

OfD –who we are

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• Norwegian and international NGOs

• The Extractive Industries Transparency Initiative (EITI)

• World Bank, IMF, African Dev. Bank, UNDP

• Norwegian and international oil and service companies where appropriate

OfD –who we cooperate with

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3 thematic areas:

- Resource Management

- Environmental Management

- Revenue Management

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• Strengthening of local institutions (ministries & directorates)

• Development/assessment of petroleum legal frameworks

• Framework for exploration and production of petroleum

• Resource databases

• Strategies for transparent licensing and tendering processes

• Policies to stimulate technology

Resource Management

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• Build environmental management capacity within the sector

• Basic legislation, rules and regulations covering environmental dimensions of the petroleum sector

• Minimise discharges from activities

• Environmental impact assessments

• Manage gas flaring and other national/global climate challenges

Environmental Management

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• Design, management and control of tax regimes for the extraction of oil and gas (Government take)

• Transparency and accountability around payments by oil companies (EITI)

• Planning and execution of government budgets

• Management of the financial savings (oil fund)

Revenue Management

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OfU spending NOK 200 mill (USD 35 mill.)