Oil Search pays millions of dollars every year in royalties, taxes, dividends, levies and other fees and charges to governments in countries where we operate. As the largest Papua New Guinean Company, this makes up a large proportion of the country’s total private sector income and is one of our most significant socio-economic contributions. We support and advocate improved transparency around how these payments are received and spent.
Transparency is important because it:
- Empowers policy-makers and citizens in resource-rich countries to ensure wealth generated by extractive industries is used to fund economic and sustainable development and reduce aid dependency,
- Enables investors to better assess the financial and political risks to which extractive companies are often exposed, and
- Fosters stronger local institutions and governance and, as a result, a more stable operating environment and level playing field for our industry.
It also helps to mitigate the risk of corruption and enables populations to hold their governments to account.
Our commitment to transparency is underpinned by:
- The principles in our Social Responsibility Policy, especially Operating with Integrity, Generating Shared Value and Maintaining and Enhancing Social Licence,
- Our commitment to Principles of the UN Global Compact, specifically Principle 10 - Businesses should work against corruption in all its forms, including extortion and bribery, and
- Our corporate and local support for the implementation of the Extractive Industries Transparency Initiative (EITI) in PNG.
We have actively encouraged revenue transparency and are long-time supporters of PNG’s journey towards EITI compliance. For many years we published and promoted our payments in local newspapers and we have voluntarily disclosed our payments to governments in countries where we operate as part of our Transparency Report and in our Data Centre.
We became an EITI Supporting Company in 2013 and actively participate in PNG’s EITI Multi-Stakeholder Group (MSG). We support the introduction of a public register of beneficial ownership of resource companies and licence interests in PNG and Australia. .
In 2014, the EITI Board approved PNG’s application to become an EITI candidate country. We continue to work with the PNG Government, civil society and industry peers to support implementation of the EITI in PNG.