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Iraqi Oil ReportingA guide for reporters

1

EITI

EITI complianceFor a country to achieve EITI Compliance, it must complete the process of validation within two-years of becominga Candidate Country.Countries seeking to achieve EITI Candidate status must meet the four sign-up criteria.Currently, there are 29 candidate countries although Guinea requested voluntary suspension in December 2009 dueto the unstable political situation [1] . An additional 5 countries have expressed interest in joining the Initiative. OnlyAzerbaijan and Liberia are EITI Compliant [2] .

Validation Stages

Sign-upCountries should meet four criteria in order to become EITI candidates. They must formally commit to implementingthe EITI; commit to working with civil society and the private sector as part of a multi-stakeholder group; appoint anindividual to lead implementation; and producing a Work Plan that has been agreed with stakeholders. The WorkPlan includes a fully costed set of measurable targets, a timetable for implementation and an assessment of capacityconstraints with the government, private sector and civil society. The document should be published and madewidely available [3] .Iraq's Work Plan is available on its official website [4] .

PreparationBefore disclosure of payments and revenue can take place, countries must ensure that key prerequisites areestablished to guarantee genuine transparency in the process. Members of the multi-stakeholder group should beactively engaged; obstacles to EITI implementation should be removed; reporting templates should be agreed; andthe government should ensure that all companies have agreed to submit audited reports in line with internationalstandards.

DisclosureDuring this stage, oil companies should disclose payments made to the government and the government shoulddisclose the revenues it has received. Payment and revenue figures are then reconciled by the EITI administrator whoshould highlight any discrepancies and recommend improvements in the process.

DisseminationOnce the EITI report has been published, it should be made publically available.

Monitoring and EvaluationA country that has met all the validation criteria is granted EITI Compliant status which is subject to revalidationwithin 5 years. Stakeholders in the process may call for a new Validation of an EITI Compliant country at any timewithin that five-year period if they think the process needs reviewing. The EITI Board will then review the situationand exercise its discretion as to whether to require the country to undergo a new Validation.[5]

EITI compliance 2

EITI CriteriaImplementation of the EITI must be consistent with the following six criteria:1. Publication: Regular publication of all material oil, gas and mining payments to governments (payments) andall material revenues received by governments from oil, gas and mining companies (revenues)to a wide audience ina publicly accessible, comprehensive and comprehensible manner.2. Audit: Payments and revenues are the subject of a credible, independent audit, applying international auditingstandards.3. Reconciliation: Payments and revenues are reconciled by a credible, independent administrator applyinginternational auditing standards, and with the publication of the administrators opinion regarding that reconciliationincluding any discrepancies, should be any be identified.4. Scope: This approach is extended to all companies, including state owned companies5. Civil Society: Civil society is actively engaged as a participant in the design, monitoring and evaluation of thisprocess, and contributes towards public debate.6. Work Plan: A public, financially sustainable Work Plan for all of the above is developed by the host government,with assistance from the international financial institutions where required, including measurable targets, a timetablefor implementation and an assessment of potential capacity constraints [6] .

Notes[1] EITI Guinea (http:/ / eiti. org/ Guinea)[2] EITI Countries (http:/ / eiti. org/ countries)[3] EITI Rules (http:/ / eiti. org/ files/ 2010-02-24 EITI RULES. pdf)[4] Iraq EITI Work Plan (http:/ / ieiti. org. iq/ site/ index. php?option=com_content& view=article& id=54& Itemid=57& lang=en)[5] EITI Rules (http:/ / eiti. org/ files/ 2010-02-24 EITI RULES. pdf)[6] EITI Rules (http:/ / eiti. org/ files/ 2010-02-24 EITI RULES. pdf)

http://eiti.org/Guineahttp://eiti.org/countrieshttp://eiti.org/files/2010-02-24%20EITI%20RULES.pdfhttp://ieiti.org.iq/site/index.php?option=com_content&view=article&id=54&Itemid=57&lang=enhttp://eiti.org/files/2010-02-24%20EITI%20RULES.pdfhttp://eiti.org/files/2010-02-24%20EITI%20RULES.pdf

EITI rationale 3

EITI rationaleThe exploitation of a country's natural resources has the potential to reduce poverty and raise living standards. But inorder to ensure that the distribution of revenues is equitable and free from corruption, strong governance mechanismsare required that uphold transparency and accountability.It is on the basis of transparency and accountability of the extractives sector that the EITI process was established.Given that natural resources, in particular, oil, has historically been a source of conflict, the EITI process ultimatelyseeks to prevent such conflict.The EITI provides a global standard for reconciling payments made by resource companies to governments, andrevenues acrued by governments at the country level. Once companies and governments disclose payments madeand recieved, an independent verification of tax and royalty payments is then overseen by a multi-stakeholder groupcomprising government, private sector and civil society representatives. [1]

Benefits for countriesCountries that meet EITI standards enjoy credibility in the international community for their commitment to goodgovernance and combatting corruption. A reputable extractives industry will also lead to an enhanced investmentclimate and healthy relations with civil society organizations.[2]

Notes[1] EITI Fact Sheet (http:/ / eiti. org/ document/ factsheet)[2] EITI Fact Sheet (http:/ / eiti. org/ document/ factsheet)

Extractive Industries Transparency InitiativeThe Extractive Industries Transparency Initiative (EITI) is a is a coalition of governments, companies, civil societygroups, investors and international organisations that has set a global standard for transparency in the oil, gas andmining industries.[1]

HistoryThe establishment of the EITI was announced in September 2002 by the then-British Prime Minister, Tony Blair,following efforts by a coalition of civil society organisations to encourage disclosure of payments made byinternational oil companies to host governments. The Initiative was initially supported by the British government,which convened a working group composed of resource-rich countries, companies and civil society organisations todevelop a methodology.In 2004, a pilot phase was launched with the involvement of three countries. A set of criteria were then developedbased on the results of the pilot and in March 2005, the second EITI plenary conference was convened in London toform the International Advisory Group (IAG), which would decide on future governance and the EITI's direction.In June 2006, the IAG established an EITI Board and selected Oslo as the location of the International Secretariat.By October 2006, the EITI Board for 2006-2008 was formed consisting of 20 members representing implementingcountries, supporting countries, civil society organisations, industry and investment companies. 15 countries werethen initially invited to join the EITI process in 2007.[2]

http://eiti.org/document/factsheethttp://eiti.org/document/factsheet

Extractive Industries Transparency Initiative 4

Governance structureThe EITI holds a Global Conference every two years to appoint a new EITI Board, which is tasked with overseeingthe Initiative. During the conference, a Members' Meeting composed of implementing and supporting countries,companies and civil society organisations selects the 20-member EITI Board.EITI's governance structure is codified in its Articles of Association (see website [3]).

The EITI BoardThe current EITI Board was selected during the 2009 Global Conference in Doha. The full list of Board memberscan be found here [4]. The current Chairman of the Board is Peter Eigen, who is independent.

SecretariatThe Government of Norway has hosted the EITI Secretariat in Oslo since September 2007. The Secretariat reportsdirectly to the EITI Board and is responsible for implementing policy decision made by the Board. It is composed ofregional directors, which manage and coordinate the efforts of EITI's regional offices. The Secretariat's role includes:outreach and advocacy, communicating and sharing lessons learned with stakeholders, managing a resource centreon revenue management and transparency, and oversight of the Validation process. It also organises, jointly withsupporting and implementing countries, the biennial EITI Conference. [5]

FundingSupporting countries, institutions and private sector companies fund the EITI Secretariat and its activities bilaterallyand through the Multi-Donor Trust Fund. Implementing country governments must also pay for their implementationand validation in the process. The World Bank manages the funds of EITI. [6]

The Government of Norway contributes about 20% of the EITI's funding.

References[1] [www.eiti.org EITI Official Website][2] EITI Rules (http:/ / eiti. org/ files/ 2010-02-24 EITI RULES. pdf)[3] http:/ / eiti. org/ articles[4] http:/ / eiti. org/ document/ eiti-board[5] EITI Secretariat (http:/ / eiti. org/ about/ secretariat)[6] EITI Funding (http:/ / eiti. org/ about/ funding)

http://eiti.org/articleshttp://eiti.org/document/eiti-boardhttp://eiti.org/files/2010-02-24%20EITI%20RULES.pdfhttp://eiti.org/articleshttp://eiti.org/document/eiti-boardhttp://eiti.org/about/secretariathttp://eiti.org/about/funding

5

Energy Industry Background

Definition of reservesDifferent systems have been used to classify reserves of oil and gas since the industry first developed in thenineteenth century. But the most widely used definitions today are provided by the Petroleum ResourcesManagement System of the American Society of Petroleum Engineers.[1]

Reserves

Proven ReservesProven reserves are those that a company is more than 90% certain of extracting under existing market conditions.They are often reserves that fall within the extraction of existing infrastructure such as wells and associated transportinfrastructure. The category of proven reserves is often prescribed in the regulations of various financial markets asthe key definition of a company's energy assets, and so the amount of proven reserves a company has access to willinfluence its share price, and the amount of capital available to it for investment. Proven reserves are also known bythe phrase P1.Proven reserves are usually quoted by the holding company and are not subject to external audit. Iraq's provenreserves are stated by the government to be 114 billion barrels of crude oil, a figure which has stayed constant since2001.[2]

British Petroleum publishes a Statistical Review every year which includes proven reserves for over 50 producingcountries.[2]

Probable ReservesProbable reserves are reserves which are known to exist and are recoverable under current market and technologicalconditions, but which the company is less certain of extracting than proven reserves. The threshold for probablereserves is 50% certainty of recovery, as opposed to 90% for proven reserves. Reasons for the difference could bethat the reserves lie outside the extractive capacity of existing wells, so need new investment, or that various licensesfor production and transportation are required from the host country. Probable and proven reserves are often lumpedtogether in a definition known as P2.

Possible ReservesPossible reserves, like probable reserves, are recoverable under existing macro conditions of oil price andtechnology. But they reach only a 10% degree of certainty on the part of the holding company. Proven, probable andpossible reserves are lumped together in a definition known as P3.

Contingent ResourcesContingent resources are those which are known to exist but which may be too expensive or technologicallychallenging to extract under current conditions. For example, an oil field may exist so far out to sea that it will be tooexpensive to drill and produce unless the price of oil rises higher than it is today.Which resources are classified as contingent is therefore a moving picture, depending on the development oftechnology.

Definition of reserves 6

Iraq has almost no contingent reserves as its known oil fields are all recoverable under current market andtechnology conditions.

Other Key Definitions

Notes[1] SPE: Petroleum Reserves Definition (http:/ / www. spe. org/ industry/ reserves/ |), approved by SPE Board 2007[2] BP Statistical Review 2009 (http:/ / www. bp. com/ statisticalreview)

Dependency on oil revenues

Degree of oil revenue dependence among Gulf exporters (IMF estimates) [1]

There are two different measures of oilrevenue dependence, as can be seen inthe figure on the right. The first is theratio of oil revenues to fiscal revenue,or the total income of the government.The second is the ratio of oil revenuesto total exports. The IMF estimatedthat of the Gulf producers the UnitedArab Emirates had the least oildependence, with oil accounting forjust over half of government income,and just under half of exports[1] .Qatar, by contrast, showed a ratio of70% of government revenues, and 80%of total exports.

The International Monetary Fundidentified at least 30 countries where revenues from oil and gas accounted for at least 25% of government incomeduring the years 2005-8 and where sufficient information was available for meaningful analysis[2] :

Algeria, Angola, Azerbaijan, Bahrain, Bolivia, Brunei, Cameroon, Chad, Congo, Ecuador, Equatorial Guinea,Gabon, Indonesia, Iran, Kazakhstan, Kuwait, Libya, Mexico, Nigeria, Norway, Oman, Qatar, Russia, Saudi Arabia,Sudan, Timor-Leste, Trinidad and Tobago, UAE, Venezuela, Vietnam, and Yemen.Iraq was not included in this list because of the lack of data, but experts estimate that over 90% of the government'sincome comes from oil.It is important to note that oil revenue dependence is not related to the quantity of oil produced or exported. Yemenwhich exported about 160,000 barrels of oil a day in early 2010 has higher degrees of dependence on oil revenuesthan Saudi Arabia, which exported about 8 million barrels a day in the same period, or 50 times more.

http://www.spe.org/industry/reserves/|http://www.bp.com/statisticalreviewhttp://eiti-reporting.net/wiki/index.php?title=File:Imf_oilrevenuedependency.gif

Dependency on oil revenues 7

References[1] GCC Countries: From Oil Dependence to Diversification (http:/ / www. imf. org/ external/ pubs/ ft/ med/ 2003/ eng/ fasano/ index. htm), IMF[2] Fiscal Policy in Oil Producing Countries During the Recent Oil Price Cycle (http:/ / www. imf. org/ external/ pubs/ ft/ wp/ 2010/ wp1028.

pdf), Mauricio Villafuerte and Pablo Lopez-Murphy, IMF Working Paper, 2008

Energy Governance Weak Points

Pre-Production Stage

Exploration LicensesOil and gas production often works in two stages, with licenses given to explore given regions at a first stage, andthen separate arrangements made once oil or gsa is discovered. Given that prediction is so hard, and the potentialrewards are so great, even the license to explore certain areas can be an opportunity for corruption. For example, in1999 Nigeria granted a series of exploration licenses for offshore to companies which did not have any experienceon oil production[1] . In Iraq, this has not been an issue in recent years because the industry has focused simply inproducing out of known reserves.

Production AwardsOnce discoveries have been made, the right to produce is again an opportunity for corruption. In some cases, thecompany which made the discovery already has agreed terms to go ahead and produce the oil. But especially inpost-conflict countries licenses may be obtained without due process. A 2004 review of companies extractingminerals in Liberia found that only 45 out of 70 operating companies had proper licenses[2] . In other cases, officialsin host governments can use the threat of renegotiation or revocation of production rights to exort illegal paymentsfrom companies.Many economists regard auctions as the best way to manage both corruption and asymmetry of information betweengovernments and companies at the production award stage[3] . But corruption is possible even with an auctionprocess, since a company and a government official can collude over subsequent modifications and renegotiations tothe contract[4] .

Production Stage

Import licenses, dues, leviesOnce a company is producing in the country, the host government has a range of tools by which it can effectivelychange conditions for operating companies, which have now sunk large investments and so have incentives to keepproducing even in the face of extra burdens. This is known to the economists as a "time-inconsistency" problem[5] .This ability to hold the company to ransom over its sunk investment can either be exploited for public interest - aswhen the government of Abdul Kraim Qassem raised port fees in Basra Oil Terminal by 1200% overnight as part ofits struggle with the Iraq Petroleum Company,[6] - or it can be used for private gain by influential officials in the hostgovernment.Among such blocking tools are licenses to import equipment needed to produce, such as has happened in Angola[7] ,transit fees in ports and along pipelines, such as happened in the Iraqi industry when it fell into disagreement withneighbouring Syria, and more recently between Ukraine and Russia[8] , and changes in various forms of corporateand other taxes.

http://www.imf.org/external/pubs/ft/med/2003/eng/fasano/index.htmhttp://www.imf.org/external/pubs/ft/wp/2010/wp1028.pdfhttp://www.imf.org/external/pubs/ft/wp/2010/wp1028.pdf

Energy Governance Weak Points 8

Support Service ContractsThe oil industry, like most of the global economy in the last few decades, has taken to outsourcing aggressively. Thismeans that even when a top level operating license has been granted under public scrutiny through an auctionprocess, the primary operator then issues licenses, which could be worth hundreds of millions of dollars, to othercompanies to implement various activities to fulfil the contract with the host government. Such secondary supportcontracts rarely come under the same scrutiny as the primary contracts signed with the host government.

Cost Recovery AccountingMany oil contracts make provisions for an oil company to recovery the heavy investment it has made to discover andthen produce oil and gas. This can typically be on a sliding scale over time, where a large part of oil revenues areawarded to the company to cover their costs in the beginning, but the proportion gradually diminishes over time[9] .Big oil companies often have sophisticated accounting methods, and can, for example, find ways to increase costs todecrease profits in one country with relatively high taxation, transferering the profits to another country wherecorporate taxes are lower. In some cases, multinational companies engage in complex transactions between severalsubsidiary companies across different legal jurisdictions which result in above market "costs", which they can thenreclaim out of the oil revenues produced by their production,[10] .All of these issues can be disputes between a host government and an oil company, as has happened in Indonesia in2009-10 with cost recovery accounting[11] . Equally, they can be bribery opportunities for an individual official inthe host govrnment.

TheftSee separate article on oil theft

References[1] Nigerian generals deny corruption (http:/ / news. bbc. co. uk/ 2/ hi/ africa/ 340489. stm), BBC News, May 10, 1999[2] Corruption and the renegotiation of mining contracts (http:/ / www. u4. no/ helpdesk/ helpdesk/ query. cfm?id=156), U4 retrieved August 1,

2010[3] Managing the Curse of Natural Resources - a charter for politicians (http:/ / www. guardian. co. uk/ business/ 2009/ feb/ 05/

curse-of-natural-resources), the Guardian, February 5, 2009[4] The Plundered Planet (http:/ / www. amazon. com/ Plundered-Planet-Must-Can-Manage-Prosperity/ ), Paul Collier, Oxford University Press,

2010[5] Dynamic Inconsistency (http:/ / en. wikipedia. org/ wiki/ Dynamic_inconsistency), Wikipedia, retrieved August 1, 2010[6] Iraq - Post World War II through the 1970s (http:/ / countrystudies. us/ iraq/ 54. htm), US Library of Congress, retrieved August 1, 2010[7] Angola Trade Report (http:/ / www. ustr. gov/ sites/ default/ files/ uploads/ reports/ 2009/ NTE/ asset_upload_file310_15452. pdf), US Trade

Department[8] Russia-Ukraine gas dispute (http:/ / en. wikipedia. org/ wiki/ RussiaUkraine_gas_disputes), Wikipedia, retrieved August 1, 2010[9] Glossary of Terms Used in Petroleum Reserves and Resources Definitions (http:/ / www. spe. org/ industry/ reserves/ docs/

GlossaryPetroleumReserves-ResourcesDefinitions_2005. pdf), Society of Petroleum Engineers, retrieved August 1, 2010[10] Cost Recovery and Oil Prices - How can host governments capture adequate revenue? A case study of Nigeria (http:/ / docs. google. com/

viewer?a=v& q=cache:hpETnuyHk0wJ:www. dundee. ac. uk/ cepmlp/ gateway/ files. php?file=CAR-12_25_554710128. pdf+ cost+recovery+ oil+ companies& hl=en& gl=uk& pid=bl&srcid=ADGEESjqpeEmBkbKe_6Jl1TqNR5IgORxMOnMHqwTtRdQl8hpqBeZHskh4E8uebPf7nxX55ULxrQQHo3nRCSnWWLDMfvrQ8aUKXNAlyc40mvUaqa6psGfci6zOtJxHBDwDbdkoOQsjADK&sig=AHIEtbQauxjFgQp9NvcBwyy0F2SrHFgzGA), Dundee University, retrieved August 1, 2010

[11] Indonesia to curb cost recovery caps (http:/ / www. upstreamonline. com/ live/ article202631. ece), Upstream Online, January 5, 2010

http://news.bbc.co.uk/2/hi/africa/340489.stmhttp://www.u4.no/helpdesk/helpdesk/query.cfm?id=156http://www.guardian.co.uk/business/2009/feb/05/curse-of-natural-resourceshttp://www.guardian.co.uk/business/2009/feb/05/curse-of-natural-resourceshttp://www.amazon.com/Plundered-Planet-Must-Can-Manage-Prosperity/http://en.wikipedia.org/wiki/Dynamic_inconsistencyhttp://countrystudies.us/iraq/54.htmhttp://www.ustr.gov/sites/default/files/uploads/reports/2009/NTE/asset_upload_file310_15452.pdfhttp://en.wikipedia.org/wiki/Russia%E2%80%93Ukraine_gas_disputeshttp://www.spe.org/industry/reserves/docs/GlossaryPetroleumReserves-ResourcesDefinitions_2005.pdfhttp://www.spe.org/industry/reserves/docs/GlossaryPetroleumReserves-ResourcesDefinitions_2005.pdfhttp://docs.google.com/viewer?a=v&q=cache:hpETnuyHk0wJ:www.dundee.ac.uk/cepmlp/gateway/files.php%3Ffile%3DCAR-12_25_554710128.pdf+cost+recovery+oil+companies&hl=en&gl=uk&pid=bl&srcid=ADGEESjqpeEmBkbKe_6Jl1TqNR5IgORxMOnMHqwTtRdQl8hpqBeZHskh4E8uebPf7nxX55ULxrQQHo3nRCSnWWLDMfvrQ8aUKXNAlyc40mvUaqa6psGfci6zOtJxHBDwDbdkoOQsjADK&sig=AHIEtbQauxjFgQp9NvcBwyy0F2SrHFgzGAhttp://docs.google.com/viewer?a=v&q=cache:hpETnuyHk0wJ:www.dundee.ac.uk/cepmlp/gateway/files.php%3Ffile%3DCAR-12_25_554710128.pdf+cost+recovery+oil+companies&hl=en&gl=uk&pid=bl&srcid=ADGEESjqpeEmBkbKe_6Jl1TqNR5IgORxMOnMHqwTtRdQl8hpqBeZHskh4E8uebPf7nxX55ULxrQQHo3nRCSnWWLDMfvrQ8aUKXNAlyc40mvUaqa6psGfci6zOtJxHBDwDbdkoOQsjADK&sig=AHIEtbQauxjFgQp9NvcBwyy0F2SrHFgzGAhttp://docs.google.com/viewer?a=v&q=cache:hpETnuyHk0wJ:www.dundee.ac.uk/cepmlp/gateway/files.php%3Ffile%3DCAR-12_25_554710128.pdf+cost+recovery+oil+companies&hl=en&gl=uk&pid=bl&srcid=ADGEESjqpeEmBkbKe_6Jl1TqNR5IgORxMOnMHqwTtRdQl8hpqBeZHskh4E8uebPf7nxX55ULxrQQHo3nRCSnWWLDMfvrQ8aUKXNAlyc40mvUaqa6psGfci6zOtJxHBDwDbdkoOQsjADK&sig=AHIEtbQauxjFgQp9NvcBwyy0F2SrHFgzGAhttp://docs.google.com/viewer?a=v&q=cache:hpETnuyHk0wJ:www.dundee.ac.uk/cepmlp/gateway/files.php%3Ffile%3DCAR-12_25_554710128.pdf+cost+recovery+oil+companies&hl=en&gl=uk&pid=bl&srcid=ADGEESjqpeEmBkbKe_6Jl1TqNR5IgORxMOnMHqwTtRdQl8hpqBeZHskh4E8uebPf7nxX55ULxrQQHo3nRCSnWWLDMfvrQ8aUKXNAlyc40mvUaqa6psGfci6zOtJxHBDwDbdkoOQsjADK&sig=AHIEtbQauxjFgQp9NvcBwyy0F2SrHFgzGAhttp://docs.google.com/viewer?a=v&q=cache:hpETnuyHk0wJ:www.dundee.ac.uk/cepmlp/gateway/files.php%3Ffile%3DCAR-12_25_554710128.pdf+cost+recovery+oil+companies&hl=en&gl=uk&pid=bl&srcid=ADGEESjqpeEmBkbKe_6Jl1TqNR5IgORxMOnMHqwTtRdQl8hpqBeZHskh4E8uebPf7nxX55ULxrQQHo3nRCSnWWLDMfvrQ8aUKXNAlyc40mvUaqa6psGfci6zOtJxHBDwDbdkoOQsjADK&sig=AHIEtbQauxjFgQp9NvcBwyy0F2SrHFgzGAhttp://www.upstreamonline.com/live/article202631.ece

Iraqi hydrocarbon reserves 9

Iraqi hydrocarbon reserves

The history of Iraqi crude oil reserves

Oil

Proven Reserves

BP Statistical Review

Iraq's official reserve estimate for crude oil proven reserves hasrisen to 115 billion barrels (bbl) today from 34 billion barrels in1980[1] . The major part of this increase in the estimates cameduring the 1980s, as can be seen from the graph on the right.

There have been three significant leaps in the estimate during this time. In 1982, early in the war with Iran, reserves estimates nearly doubled from 32 billion to 59 billion barrels. In 1987, as the Iraqi economy was suffering from the long war with Iran, and as it appeared that OPEC was about

to base production quotas on stated reserves, the figure jumped from 72 billion barrels to exactly 100 billionbarrels.

In 1996, as the United Nations was finalising terms of the Oil For Food program which would allow Iraq toexport oil again after a total ban for several years, the estimate jumped from 100 billion to 112 billion barrels.[1]

However, as with other OPEC producers, it is not clear if the current estimate of 115 billion barrels also includes oilthat has already been produced. The United States Geological Survey's World Petroleum Outlook of 2000 estimatedthat of the 100 billion barrel figure that was then being used, 22 billion barrels had already been produced, leavingonly 78 billion barrels yet to be recovered from the proven reserves[2] .

Estimates for Ultimately Recoverable Crude OilSince Iraq is the least explored of the oil-rich countries, there have been numerous claims of huge undiscoveredreserves there as well - oil thought to exist, and expected to become economically recoverable - to the tune ofhundreds of billions of barrels. The respected Petroleum Economist Magazine estimates that there may be as manyas 200 bbl of oil in Iraq; the Federation of American Scientists estimates 215 bbl; a study by the Council on ForeignRelations and the James A. Baker III Institute at Rice University claimed that Iraq has 220 bbl of undiscovered oil.[2]

Overall, only about 2,000 wells reportedly have been drilled in Iraq (of which about 1,500-1,700 were actuallyproducing oil in 2005), compared to around 150,000 producing wells in Texas for comparison purposes[3] .

http://eiti-reporting.net/wiki/index.php?title=File:Iraqi_reserves_300.gifhttp://eiti-reporting.net/wiki/index.php?title=The_Organization_of_Petroleum_Exporting_Contrieshttp://eiti-reporting.net/wiki/index.php?title=Growth_in_OPEC_crude_oil_reserve_estimateshttp://eiti-reporting.net/wiki/index.php?title=Oil_For_Food

Iraqi hydrocarbon reserves 10

Tareq Shafiq

In 2003, Tareq Shafiq, a founding executive of the Iraq National Oil Company in the 1960s, endorsed a figure of 140billion barrels as being Iraq's eventual proven reserves, and a potential reserve of 215 billion barrels.[4]

References[1] British Petroleum Statistical Review 2009 (http:/ / www. bp. com/ productlanding. do?categoryId=6929& contentId=7044622)[2] How much oil does iraq have? (http:/ / www. brookings. edu/ papers/ 2003/ 0512globalenvironment_luft. aspx), Brookings Institute paper,

May 12, 2003[3] OPEC Revenues (http:/ / www. eia. doe. gov/ emeu/ cabs/ orevcoun. html), the US Energy Information Administration, retrieved July 25,

2010[4] Iraq Oil Development Policy Options: In Search Of Balance (http:/ / www. mees. com/ postedarticles/ oped/ a46n50d02. htm), Middle East

Economic Survey, December 15, 2003

Oil theftOutright physical theft has been one of the major weak points in Iraq's industry since the 1990s, particularly with oilfrom Kirkuk.

MeteringIraq has suffered a lack of correct metering from its wellheads and pipelines since at least 2003. The InternationalAdvisory and Monitoring Board (IAMB), created in 2003 to oversee management of Iraq's natural resources during atransitional period, said in 2006 that years of requesting an accurate metering system had brought no results[1] . TheCoalition Provisional Authority had commissioned Kellog, Brown and Root (KBR) to restore Iraq's productioncapacity after the war, and KBR later stated they surpassed pre-war production of 2 million barrels a day to reach 2.4million barrels a day by December 2003. But no metering system was installed, despite the fact that KBR is asubsidiary of Halliburtons, an oil services company and one of the leading suppliers of state of the art oil meters[2] .IAMB first expressed concern at the lack of metering in July 2004[3] . As of mid-2010, the UN was still asking foraccurate oil metering[4] .The lack of metering leads to the potential for large quantities to be stolen, since even a 1% discrepancy in themanifest of a ULCC tanker with 350,000 tonnes dead weight capacity would be equivalent to 500 entire truckloadsof about 1,000 gallons each. Ghaith Abul-Ahad reported in the Guardian that one tribe in Basra was paying $250,000a week to armed gunmen to secure the Basra Oil Terminal while they loaded tankers with unmetered cargoes of oil[5]

BunkeringBunkering involves tapping oil pipelines and other major facilities to gather oil, storing it illegally, and then shippingit out in consignments which, unlike false metering, are entirely illegal. There has been much bunkering in the southof Iraq since the industry became deregulated as a result of sanctions in the 1990s.

TruckingIraq's oil industry has relied heavily, on road transport at various times during its history, notably during the Iran-Iraqwar in the 1980s when up to 250,000 barrels of oil a day were transported to Jordan and Turkey[6] , and again in the1990s, when the government of Saddam Hussein was attempting to export the maximum amount of oil outside theparameters of sanctions and the Oil for Food Program.After 2003, illegal trucking has continued, sometimes on a large scale. In one operation in 2006, police seized400,000 barrels of oil destined for Syria and worth an estimated $28 million on the black market[7] .

http://www.bp.com/productlanding.do?categoryId=6929&contentId=7044622http://www.brookings.edu/papers/2003/0512globalenvironment_luft.aspxhttp://www.eia.doe.gov/emeu/cabs/orevcoun.htmlhttp://www.mees.com/postedarticles/oped/a46n50d02.htmhttp://eiti-reporting.net/wiki/index.php?title=Oil_for_Food_Program

Oil theft 11

Connection to InsurgencySince 2003 there have been hundreds of attacks on Iraq's oil industry, but analysts think that many such attacks,which are billed as political acts of insurgency, may in fact be the work of organized crime syndicates in order tomaximise the potential for theft. Pipelines are damaged in order to force transport of oil by truck, so it can bestolen[8] . Then Finance Minister Ali Allawi estimated insurgents were getting between 40% and 50% of Iraq's oilrevenues[8] .

Fuel Products and GasolineIn Iraq, demand for fuel products rose sharply after the 2003 war because more cars were on the road and theelectricity grid virtually collapsed leading to use of private generators[9] . This sharply increased the motivation tosteal gasoline in large quantities, a trade that had begun under the Oil for Food Program in the 1990s, particularly asIraq could not produce enough gasoline and fuel products for its own needs and had to import them, while alsosubsidising them on the local market.The Ministry of Oil's Inspector General reported that theft was occurring both in shipments of oil products enteringIraq from Turkey and Kuwait[10] . This kind of activity reached a peak in 2004-5, when gasoline was officially only3 US cents per gallon while fetching over a dollar a gallon the black market. The inspector general's report stated thatbetween September 2005 and February 2005 an average of nine trucks of imported oil products a day left Basra forthe interior of Iraq but never arrived[10] .The subsidies also made refined products that were being produced inside Iraq a target for theft, especially thosecoming from the Baiji Refinery, where in 2007 the US Department of Defence estimated 70% of the output wasbeing stolen[11] . The number of retail petrol outlets near Baiji from just eight in 2003 to over 50 by 2008 as thestation owners could gain access to oil products at the subsidised price and then resell them on the black market[12] .Policies led by Oil Minister Hussein Shahristani to reduce and then remove subsidies on fuel had greatly reduced thiscategory of smuggling and theft in Iraq by mid-2010 compared to levels in 2004-5[13] .

References[1] Iraq's Oil Metering System Mysteriously Delayed (http:/ / www. iraqdirectory. com/ DisplayNews. aspx?id=868), Reuters, February 9, 2006[2] Halliburton's FastQ Multiphase Flow Meter System First To Be Certified For Deployment In Kazakhstan (http:/ / www. ntm. nickles. com/

issues/ story. aspx?aid=1000030444), New Technology, January 5, 2004[3] IAMB Reviews KPMG Audit of the Iraq Development Fund (http:/ / ocha-gwapps1. unog. ch/ rw/ rwb. nsf/ db900SID/

HMYT-62XQXT?OpenDocument), ReliefWeb, July 15, 2004[4] Revenue Mechanism for Iraq Still Lacking, Comptroller says (http:/ / www. un. org/ News/ Press/ docs/ 2010/ sc9978. doc. htm), UN

website, July 12, 2010[5] Oiling the wheels of war: smuggling becomes the real economy of Iraq (http:/ / www. guardian. co. uk/ world/ 2007/ jun/ 09/

iraq-middleeast), Ghaith Abul-Ahad, Guardian, June 9, 2007[6] Iraq - Oil in the 1980s (http:/ / countrystudies. us/ iraq/ 55. htm), US Library of Congress[7] How Iraqi Oil Smuggling Greases Violence (http:/ / www. meforum. org/ 1020/ how-iraqi-oil-smuggling-greases-violence), Bilal Wahab,

Middle East Forum, Fall 2006[8] Oil corruption fuels insurgency in Iraq (http:/ / www. nytimes. com/ 2006/ 02/ 05/ world/ africa/ 05iht-corrupt. html), Robert Worth and

James Glanz, New York Times, February 5, 2006[9] Criminals, Militias, and Insurgents: Organized Crime in Iraq (http:/ / www. strategicstudiesinstitute. army. mil/ pdffiles/ pub930. pdf), Phil

Williams, Strategic Studies Institute[10] Smuggling Crude Oil and Oil Products Second Transparency Report (http:/ / www. iraqrevenuewatch. org/ reports/ 052206. pdf), Revenue

Watch Institute[11] [www.defense.gov/pubs/pdfs/9010-Final-20070608.pdf Measuring Stability and Security in Iraq], US Department of Defence, June 7, 2007[12] Iraqs Insurgency Runs on Stolen Oil Profits (http:/ / www. nytimes. com/ 2008/ 03/ 16/ world/ middleeast/ 16insurgent. html), Richard

Oppel, New York Times, March 16, 2008[13] IMF Executive Board Approves US$744 Million Stand-By Arrangement for Iraq (http:/ / www. imf. org/ external/ np/ sec/ pr/ 2007/

pr07301. htm), IMF website, December 20, 2007

http://eiti-reporting.net/wiki/index.php?title=Oil_for_Food_Programhttp://eiti-reporting.net/wiki/index.php?title=Hussein_Shahristanihttp://www.iraqdirectory.com/DisplayNews.aspx?id=868http://www.ntm.nickles.com/issues/story.aspx?aid=1000030444http://www.ntm.nickles.com/issues/story.aspx?aid=1000030444http://ocha-gwapps1.unog.ch/rw/rwb.nsf/db900SID/HMYT-62XQXT?OpenDocumenthttp://ocha-gwapps1.unog.ch/rw/rwb.nsf/db900SID/HMYT-62XQXT?OpenDocumenthttp://www.un.org/News/Press/docs/2010/sc9978.doc.htmhttp://www.guardian.co.uk/world/2007/jun/09/iraq-middleeasthttp://www.guardian.co.uk/world/2007/jun/09/iraq-middleeasthttp://countrystudies.us/iraq/55.htmhttp://www.meforum.org/1020/how-iraqi-oil-smuggling-greases-violencehttp://www.nytimes.com/2006/02/05/world/africa/05iht-corrupt.htmlhttp://www.strategicstudiesinstitute.army.mil/pdffiles/pub930.pdfhttp://www.iraqrevenuewatch.org/reports/052206.pdfhttp://www.nytimes.com/2008/03/16/world/middleeast/16insurgent.htmlhttp://www.imf.org/external/np/sec/pr/2007/pr07301.htmhttp://www.imf.org/external/np/sec/pr/2007/pr07301.htm

12

IOCs

BP

Oilfields in Iraq Rumaila

Other Middle East N/A

Type Public Company (London, NY)

Founded 1909 (as the Anglo-Persian Oil Company), 1954 (as the British Petroleum Company), 1998 (merger of BP and Amoco)

Headquarters London, UK, Europe

Key People Tony Hayward, CEO

Products Petroleum and products, aviation fuel, petrol stations, solar panels

Revenue $246 billion USD (2009)

Operating Income $26.43 billion (2009)

Net Income $16.58 billion (2009)

Employees 92,000 (March 2009)

Total Assets $236 billion (2009)

Total Equity $101 billion (2009)

Website BP.com [1]

Global Snapshot

Current Global ProfileBP is a British global energy company which is the third largest global energy company and the 4th largest companyin the world. It is one of the world's six supermajors, as well as the UK's largest corporation. In early 2010, BPreported 45% drop in annual profit, announcing that replacement cost profit for 2009 was $13.96bn (8.75bn),compared with $25.59bn in 2008[2]

BP[3] began business as Anglo-Persian Oil in 1909,[4] which exported its first cargo of oil in March 1912 fromAbadan in Iran.[5] From 1914 until the 1980s, the British government were the company's principal stockholder[5]

and since then BP have acquired the Standard Oil Company in 1987, merged with US company Amocco in 1998 andacquired Atlantic Richfield and Burmah Castroland in 2000.[5]

BP is currently dealing with the aftermath of the explosion of its Deepwater Horizon drilling rig on April 20 whichclaimed 11 lives[6] and has been labelled by the Obama administration as an event of "national significance"[7] . Theclean up operations have included 2,500 BP staff from around the world, 200 government staff and fishing andenvironmental organisations along with 160 different companies[8] in an effort to stop the estimated 5,000 barrels, or200,000 gallons of oil per day leaking out from the well[9]

http://www.bp.comhttp://eiti-reporting.net/wiki/index.php?title=Supermajors

BP 13

Company Report Highlights (2009)In 2009 BP invested $20 billion in businesses and realized more than $4 billion in cash savings. Reported productiongrew by 4% and unit production costs were down by 12%.Despite an overall improvement in safety, with the segments reported recordable injury frequency improving from0.43 in 2008 to 0.39 in 2009, in early April a third-party-operated helicopter carrying contractors from BPs Millerplatform crashed in the North Sea, resulting in the tragic loss of 16 lives.2009 saw an increase in greenhouse gas emissions as 65.0 million tonnes emitted as compared to 2008s figure of61.4 million tonnes. The number of employees in 2009 dropped by 11,700 to 80,300 employees worldwide.Reported production of barrels of oil also increased by 4% as compared with 2008 to 3,998 thousand barrels of oilequivalent per day.[10]

Operations in Iraq

HistoryBP's relationship with Iraq dates back as far as 1927, when along with Exxon, Total and Shell, it had a 23.75% sharein the Iraq Petroleum Company[11] which, following contracts in the 1930s gained full control over Iraq's oil[12] andthus kept Iraq's oil reserves under foreign control for more than 40 years[11] .BP continued working in Iraq for many years and helped to discover the super giant field Rumaila in 1953[13] beforeclosing their representative office there due to the war with Kuwait in 1990[14] . They restarted work in Iraq, morespecifically on Rumaila, in April 2005 when they signed a Services Agreement with the Ministry of Oil for anIntegrated Rumaila Oil Field Study.[15] . This study included building a modern database for Rumaila and doing aninitial, integrated reservoir analysis[15] .

2009 Service ContractsIn December, BP was in a consortium with China National Petroleum Corporation (CNPC) which won a contract todevelop the Rumaila oil field.In June 2009, BP together with China National Petroleum Corporation (CNPC) had their field bid accepted by IraqsOil Ministry for the service contract for Rumaila oil field, Iraqs largest oil field.[16] in what has been called anhistoric televised oil field auction.[17] BP was the first oil major to secure a long-term contract in Iraq, when it agreedto cut its fee per barrel from $3.99 to $2.[17]

After the initial agreement awarding BP the Rumaila contract area, an informed Iraqi industry expert said thecompany renegotiated the terms of the service contract. The negotiations took place in December 2009 and January2010 and resulted in a final contract that differed from the model contract the government published in 2009.[18] Thefinal version of the contract has not been made public as of mid-2010.BP has announced that, together with both CNPC and the Iraqi State Oil Marketing Organization (SOMO) theyintend to grow production in Rumaila from approximately 1 million barrels per day to 2.85 million barrels perday[19] and together with CNPC are spending about $15 billion in Rumaila.[20]

BP has continued to begin work on the oil fields, and at the end of March 2010 announced that it had awarded $500million in contracts to drill wells in Iraq's giant Rumaila oil field[21] , saying that it plans to drill 70 wells in Rumailain 2010,[22] and BPs head of production Andy Inglis saying that Rumaila may become the worlds second-largestfield by 2015.[20] This deal is considered crucial for the worlds oil industry, as if successful, it could be part of oneof the largest expansions of crude-oil production ever achieved anywhere.[21]

http://eiti-reporting.net/wiki/index.php?title=China_National_Petroleum_Corporationhttp://eiti-reporting.net/wiki/index.php?title=State_Oil_Marketing_Organizationhttp://eiti-reporting.net/wiki/index.php?title=Andy_Inglis

BP 14

CSR ActivitiesHighlights from BP's official Sustainability Review 2009[23] include: A project in Azerbaijan to improve the technical quality of the economic advice provided to policy-makers the

Advisory Programme for Macroeconomic Management and Institutional Reforms. Investments in learning including providing science resources for UK classrooms to support for Chinas Tsinghua

University in building strengths in management education. The Birds Head Business Empowerment Programme, which enables local companies to acquire the skills needed

to compete for work with BP and other potential customers. Work in areas such as health, education and livelihoods, creating an integrated social programme that contains a

variety of projects, including a community health unit in Tangguh, West Papua, Indonesia, which carries outimmunization and trains local residents in areas such as reproductive health and personal hygiene.

Transparency

EITI Supporter StatusBP is a supporter company of EITI.

UN Global CompactBP has been a member of the UN Global Compact since 2000, and as of 2010 has submitted 7 Sustainabilityreports.[24]

Notes[1] http:/ / www. bp. com[2] | BP profit hit by lower oil prices (http:/ / news. bbc. co. uk/ 2/ hi/ 8491892. stm), BBC News, 2 February 2010[3] BP official website (http:/ / www. bp. com)[4] | From Anglo-Persian Oil to BP Amoco (http:/ / news. bbc. co. uk/ 2/ hi/ business/ 149259. stm), BBC News, August 11, 1998[5] | BP PLC (http:/ / www. history. com/ topics/ bp-plc)[6] (http:/ / business. timesonline. co. uk/ tol/ business/ industry_sectors/ natural_resources/ article7127623. ece), Times Online, May 16, 2010[7] | Gulf of Mexico Oil Hits Coast (http:/ / abcnews. go. com/ WN/ Eco/ bp-oil-spill-national-significance-obama-administration/

story?id=10509844), ABC news, April 29, 2010[8] | BP fights to stop the Gulf of Mexico spill (http:/ / www. guardian. co. uk/ business/ 2010/ may/ 16/ bp-gulf-of-mexico-oil-spill), The

Guardian, 16 May 2010[9] (http:/ / www. msnbc. msn. com/ id/ 36800673/ ns/ us_news-environment/ ), MSNBC news, April 30, 2010[10] | BP Annual Review 2009 (http:/ / www. bp. com/ assets/ bp_internet/ globalbp/ globalbp_uk_english/ set_branch/ STAGING/

common_assets/ downloads/ pdf/ BP_Annual_Review_2009. pdf)[11] | Oil Giants Return to Iraq (http:/ / www. independent. co. uk/ news/ world/ middle-east/ oil-giants-return-to-iraq-851036. html), The

Independent, Friday, 20 June 2008[12] | BP Stealing Iraqs Future (http:/ / www. iraqoccupationfocus. org. uk/ resources/ BP_Stealing_Iraqs_Future. pdf), Shareholder Briefing

by PLATFORM April 2008.[13] | Rebirth of Rumaila (http:/ / www. ngoilgasmena. com/ article/ Rebirth-of-Rumaila/ ), O&G Next Generation Magazine, February 2010

edition[14] |BP-Led Consortium Wins Iraq Oil Deal (http:/ / www. cbsnews. com/ stories/ 2009/ 10/ 17/ business/ main5392366. shtml), CBS News, 17

October, 2009[15] |BP in Rumaila (http:/ / www. bp. com/ genericarticle. do?categoryId=98& contentId=7059849), from speech by Michael C Daly, BP Head

of Exploration, on 16 February 2010[16] | Iraq, Oil and Gas Legislation, Revenue Sharing, and U.S. Policy (http:/ / www. fas. org/ sgp/ crs/ mideast/ RL34064. pdf), by Christopher

M. Blanchard, Analyst in Middle Eastern Affairs, November 3, 2009[17] | BP's Iraq oil deal faces court battle (http:/ / www. telegraph. co. uk/ finance/ newsbysector/ energy/ oilandgas/ 7062249/

BPs-Iraq-oil-deal-faces-court-battle. html), 23 Jan 2010[18] Interview by EITI Reporting with Iraqi oil executive, June 2010

http://www.bp.comhttp://news.bbc.co.uk/2/hi/8491892.stmhttp://www.bp.comhttp://news.bbc.co.uk/2/hi/business/149259.stmhttp://www.history.com/topics/bp-plchttp://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article7127623.ecehttp://abcnews.go.com/WN/Eco/bp-oil-spill-national-significance-obama-administration/story?id=10509844http://abcnews.go.com/WN/Eco/bp-oil-spill-national-significance-obama-administration/story?id=10509844http://www.guardian.co.uk/business/2010/may/16/bp-gulf-of-mexico-oil-spillhttp://www.msnbc.msn.com/id/36800673/ns/us_news-environment/http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/common_assets/downloads/pdf/BP_Annual_Review_2009.pdfhttp://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/common_assets/downloads/pdf/BP_Annual_Review_2009.pdfhttp://www.independent.co.uk/news/world/middle-east/oil-giants-return-to-iraq-851036.htmlhttp://www.iraqoccupationfocus.org.uk/resources/BP_Stealing_Iraqs_Future.pdfhttp://www.ngoilgasmena.com/article/Rebirth-of-Rumaila/http://www.cbsnews.com/stories/2009/10/17/business/main5392366.shtmlhttp://www.bp.com/genericarticle.do?categoryId=98&contentId=7059849http://www.fas.org/sgp/crs/mideast/RL34064.pdfhttp://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7062249/BPs-Iraq-oil-deal-faces-court-battle.htmlhttp://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7062249/BPs-Iraq-oil-deal-faces-court-battle.html

BP 15

[19] | BP's Annual Review 2009 (http:/ / www. bp. com/ assets/ bp_internet/ globalbp/ globalbp_uk_english/ set_branch/ STAGING/common_assets/ downloads/ pdf/ BP_Annual_Review_2009. pdf)

[20] | BP to Be Paid in Crude for Iraq Investment Costs (http:/ / www. bloomberg. com/ apps/ news?pid=20601072& sid=asvSmN2bfgkk), 28April 2010

[21] | BP Begins Big Push to Revive Iraq's Oil (http:/ / online. wsj. com/ article/ SB10001424052702303601504575154030706013588. html), 31March 2010

[22] | BP doles out drilling contracts in Iraq (http:/ / www. upi. com/ Science_News/ Resource-Wars/ 2010/ 04/ 01/BP-doles-out-drilling-contracts-in-Iraq/ UPI-85041270131276/ ), April 1, 2010

[23] | Sustainability Review 2009 (http:/ / www. bp. com/ assets/ bp_internet/ globalbp/ STAGING/ global_assets/ e_s_assets/ e_s_assets_2009/downloads_pdfs/ bp_sustainability_review_2009. pdf), BP Official Website

[24] | BP Plc (http:/ / www. unglobalcompact. org/ participant/ 1433-BP-Plc), UN Global Compact

China National Petroleum Company

Oilfields in Iraq al-Ahdab, Halfaya, Rumaila

Other Middle East N/A

Type Government-owned corporation

Founded Beijing, China (1988)

Headquarters Beijing, China

Key People Jiang Jiemin (President) Wang Guoliang (CFO)

Products Oil (fuels, lubricants) Natural Gas Petrochemical Oil Exploration Services Oil Exploration Equipments

Revenue $110.552 billion USD

Operating Income N/A

Net Income $13.256 billion

Employees 1,618,393 (2009)

Total Assets N/A

Total Equity N/A

Website cnpc.com.cn [1]

Global Snapshot

Current Global ProfileCNPC is Chinas largest oil and gas producer and supplier, with a presence in almost 70 countries.[2] and explorationand production projects in 27 countries.[3] . CNPC currently operates a network of 1,650 gas stations, with estimatedreserves of 3.1 billion metric tons of oil and 2.3 trillion cubic meters of natural gas.[3]

Company Report HighlightsFrom CNPC's 2007 Annual Report:2007 saw CNPC register the biggest oil field discovery made by China in the past 3 decades- that of the Nanpu field,a giant oilfield with a reserve volume of 1.18 billion metric tons.They exported petroleum materials and equipments to 69 countries and regions throughout the world with theexporting amount 13.6% higher than that of 2006. Overall, in 2007 CNPC recorded the best performance in itshistory, reporting sales revenues of RMB 1000.68 billion (about $150 billion), a total profit of RMB 191.98 billion

http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/common_assets/downloads/pdf/BP_Annual_Review_2009.pdfhttp://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/common_assets/downloads/pdf/BP_Annual_Review_2009.pdfhttp://www.bloomberg.com/apps/news?pid=20601072&sid=asvSmN2bfgkkhttp://online.wsj.com/article/SB10001424052702303601504575154030706013588.htmlhttp://www.upi.com/Science_News/Resource-Wars/2010/04/01/BP-doles-out-drilling-contracts-in-Iraq/UPI-85041270131276/http://www.upi.com/Science_News/Resource-Wars/2010/04/01/BP-doles-out-drilling-contracts-in-Iraq/UPI-85041270131276/http://www.bp.com/assets/bp_internet/globalbp/STAGING/global_assets/e_s_assets/e_s_assets_2009/downloads_pdfs/bp_sustainability_review_2009.pdfhttp://www.bp.com/assets/bp_internet/globalbp/STAGING/global_assets/e_s_assets/e_s_assets_2009/downloads_pdfs/bp_sustainability_review_2009.pdfhttp://www.unglobalcompact.org/participant/1433-BP-Plchttp://www.cnpc.com.cnhttp://eiti-reporting.net/wiki/index.php?title=CNPChttp://eiti-reporting.net/wiki/index.php?title=CNPChttp://eiti-reporting.net/wiki/index.php?title=CNPC

China National Petroleum Company 16

($28 billion) and with 830 million metric tons of oil in place.

Operations in Iraq

HistoryCNPC's relationship with Iraq dates back to 1997, when talks took place for oilfield contracts, and a deal was signedwith Saddam Hussein's government to develop the al-Ahdab oilfield.[4] The deal was between Al-waha PetroleumCo., Ltd, a joint venture of CNPC and China North Industries Corporation and the then Iraqi government, but wasthen postponed by the UN sanctions on Iraq and the following US led invasion.[5] . The deal was renegotiated in2008 with Iraq's Ministry of Oil at a value of $3bn to produce 110,000 barrels per day, up from the 90,000 barrelsforecast in the original deal.[6] . Work began in March 2009 but despite problems from local farmers[7] , is reportedto be processing well after drilling of the first well started in May 2009[8]

2009 Service ContractsIn 2009 CNPC led a consortium which won the contract to develop the Halfaya oil field, with CNPC having a 37.5percent stake in the project, Total and Petronas holding 18.75 percent and Iraqi state-run South Oil Company havingthe remaining 25 percent stake.[9] . The contract includes a remuneration fee of $1.40 per barrel and will have to payIraq a non-recoverable signature bonus of $150m[10] The consortium has pledged to boost output at Halfaya to535,000 bpd from a current level of 3,100 bpd[8] .CNPC together with British Petroleum have also signed a service contract to develop southern Iraq's giant Rumailaoil field, promising to pump $15 billion in investment to raise production at Rumaila from its current one millionbarrels a day to 2.85 million. BP will hold a 38% stake in the venture, while CNPC will own 37% and Iraq will havethe remaining 25%.[11] . Together with BP, CNPC will be spending about $15 billion in Rumaila and have pledgedto more than double production to at least 2.85 million barrels a day in the second half of this decade, with a baseproduction agreed at 1.066 million bpd.[12] . Jiang Jiermin, president of CNPC has said that the production plateau of2.85 million barrels a day could be achieved ahead of schedule.[13]

CSR ActivitiesCNPCs CSR Activities are outlined in its Annual Report, and include the following highlights: Promotion of its "Safety and Environmental Protection Year" program Issue of environmental management rules and plans, including Management of Environmental Monitoring,

Statistical Environmental Management and the Plan for Establishing an Online Pollution Source MonitoringSystem

Allocation of RMB 120 million ($18 million) for Sichuan Province, Hunan Province, Chongqing Municipality,and Xinjiang Uygur Autonomous Region to help people fight flooding, drought and snowstorms, and rebuild theirhomes.

Donation of RMB 1 million ($150,000) to the "Spring Rain Project" sponsored by the International ScientificExchange Foundation of China (ISEFC). The donation was used to construct 20 scientific assistance stations todeliver modern IT education to rural youth.

Completion of seven transportation, education, housing, and solar power generation projects in Shuanghu Region,Naqu

Completion of 50 transportation, energy, education and healthcare projects, benefiting 80% of the local farmersand herdsmen in Shuanghu, Tibet.

Financial assistance to Mygoma and Al Rashad Center orphanages, Al Sagana Rest Home, Al SalamapiWorkshop and Ibn Sina Hospital

China National Petroleum Company 17

Signing of a Nonprofit Foundation Agreement with the Ministry of Social Security of Khartoum State in Sudan toprovide USD 1 million to improve the living and medical facilities of orphanages, senior citizens' homes andpublic medical institutions

Transparency

EITI Supporter StatusCNPC is not a supporter company of EITI.

UN Global CompactCNPC does not form part of the UN Global Compact.

Notes[1] http:/ / www. cnpc. com. cn[2] | About CNPC (http:/ / www. cnpc. com. cn/ en/ aboutcnpc/ ), CNPC Company website[3] | CNPC Company Profile (http:/ / biz. yahoo. com/ ic/ 53/ 53895. html), Yahoo Finance[4] | The Chinese National Petroleum Company (http:/ / www. internationalresourcejournal. com/ features/ features_march_10/

the_chinese_national_petroleum_company. html), The International Resource Journal, March 10 2010[5] | CNPC in Iraq (http:/ / www. cnpc. com. cn/ en/ cnpcworldwide/ iraq/ CNPC_in_Iraq. htm), CNPC Worldwide[6] | China's CNPC seals $3bn Iraq deal (http:/ / news. bbc. co. uk/ 2/ hi/ business/ 7585790. stm), BBC News, 28 August 2008[7] | China Faces Unexpected Problem Drilling for Oil (http:/ / online. wsj. com/ article/ SB124293064819744203. html), Wall Street Journal,

May 22 2009[8] | CNPC says Iran, Iraq oil projects proceed well (http:/ / www. reuters. com/ article/ idUSTOE63K09520100421), Reuters, Wed Apr 21, 2010[9] | Iraq : CNPC's Halfaya project in Iraq to start operation in H2 (http:/ / www. thefreelibrary. com/ Iraq+ :+ CNPC's+ Halfaya+ project+ in+

Iraq+ to+ start+ operation+ in+ H2. -a0220743268), The Free Library, 9 March 2010[10] | Iraq inks CNPC, Total, Petronas Halfaya deal (http:/ / iraqoilfield. com/ ?p=27), Iraq Oil Field, Jan 30, 2010[11] | BP-China National Group Signs Pact for Iraq Oil Field (http:/ / online. wsj. com/ article/

SB10001424052748703740004574513192925257848. html), The Wall Street Journal, November 4 2009[12] | BP to Be Paid in Crude for Iraq Investment Costs (http:/ / www. bloomberg. com/ apps/ news?pid=20601072& sid=asvSmN2bfgkk),

Bloomberg, April 27 2010[13] | CNPC: To Raise Iraq Rumaila Oilfield Output 10% By Year-End (http:/ / online. wsj. com/ article/ BT-CO-20100419-716983. html), The

Wall Street Journal, April 19 2010

http://eiti-reporting.net/wiki/index.php?title=CNPChttp://eiti-reporting.net/wiki/index.php?title=CNPChttp://www.cnpc.com.cnhttp://www.cnpc.com.cn/en/aboutcnpc/http://biz.yahoo.com/ic/53/53895.htmlhttp://www.internationalresourcejournal.com/features/features_march_10/the_chinese_national_petroleum_company.htmlhttp://www.internationalresourcejournal.com/features/features_march_10/the_chinese_national_petroleum_company.htmlhttp://www.cnpc.com.cn/en/cnpcworldwide/iraq/CNPC_in_Iraq.htmhttp://news.bbc.co.uk/2/hi/business/7585790.stmhttp://online.wsj.com/article/SB124293064819744203.htmlhttp://www.reuters.com/article/idUSTOE63K09520100421http://www.thefreelibrary.com/Iraq+%3A+CNPC%27s+Halfaya+project+in+Iraq+to+start+operation+in+H2.-a0220743268http://www.thefreelibrary.com/Iraq+%3A+CNPC%27s+Halfaya+project+in+Iraq+to+start+operation+in+H2.-a0220743268http://iraqoilfield.com/?p=27http://online.wsj.com/article/SB10001424052748703740004574513192925257848.htmlhttp://online.wsj.com/article/SB10001424052748703740004574513192925257848.htmlhttp://www.bloomberg.com/apps/news?pid=20601072&sid=asvSmN2bfgkkhttp://online.wsj.com/article/BT-CO-20100419-716983.html

Eni 18

Eni

Oilfields in Iraq Zubair

Other MiddleEast

N/A

Type N/A

Founded 10 February 1953

Headquarters Rome, Italy

Key People Roberto Poli (Chairman), Paolo Scaroni (CEO)

Products Oil and natural gas exploration, production, refining and marketing, electricity generation, oil and gas engineering andconstruction

Revenue 84.35 billion (2009)

Operating Income 12.06 billion (2009

Net Income N/A

Employees 78,420 (2009

Total Assets N/A

Total Equity N/A

Website www.eni.it

Global Snapshot

Current Global ProfileEni is one of Italys largest companies, with a presence in more than 70 countries.[1] . Eni is represented in all fieldsrelated to hydrocarbons[2] ., and within this focuses upon three core areas- Exploration & Production; Gas & Power;and Refining and Marketing[3] .Eni is currently 5th in Europe in terms of refining and 6th in the world in terms of reserves[4] . The Italiangovernment maintains a 30% share in the company[5] and in 2002 they acquired the Norwegian subsidiary to theFinnish group Fortum.[6] .Eni has released its Financial Highlights for the first quarter of 2010, in which they announced that their adjustedoperating profit was up 15.4% to 4.33 billion ($5.97 billion) and their net profit was up 16.7% to 2.22 billion($3.06 billion) [7] .In 2009, the European Commission announced that it had lodged formal antitrust charges against ENI on suspicionsthe Italian energy group conspired to keep competitors from using its gas pipelines, following initial antitrustproceedings that began in 2007. [8] .

Eni 19

Company Report HighlightsIn 2009 Eni reported net profit of 4.37 billion (for the full year, with an adjust basis net profit of 5.21 billion,down 48.8% from a year ago due to an unfavourable trading environment for oil prices in the first nine months,lower sales volumes and a higher tax rate.In 2009 they put a total of 27 new fields into production and completed 69 net exploration wells in addition to 10wells in progress at year end. Highlights of their exploration activities include the giant Perla discovery (Eni 50%) inVenezuela and with the high potential Cabaa Norte discovery (Eni operator with a 35% interest) in Angola.2009 also saw Eni complete the acquisition of the Belgian gas company Distrigas by means of a tender offer onDistrigas minorities and the celebration of the 40th anniversary of the strategic partnership between Eni andGazprom.

Operations in Iraq

HistoryIn 2002, the New York Times reported that Eni, together with Total and Repsol YPF, had agreed to buy oil directlyfrom Iraq after it dropped a surcharge on sales. The report quoted spokeswoman Luciana Santaroni as saying that Enihad bought a million barrels of Iraqi oil.[9]

2009 Service ContractsIn 2009, Eni was part of a contract including Occidental and Kogas which won the contract to develop Zubair oilfield in Missan province. Eni holds a 32.81% stake, while Occidental Petroleum holds a 23.44% stake, Kogas18.75% and Iraq's state-run Missan Oil Co. holds the remaining 25%.The service contract is 20 years long, and as part of the contract the consortium was due to pay the Iraqi Oil Ministry$300 million as a refundable five-year loan, instead of paying a signature bonus as with the other deals from thesecond round of the oil field bids held in December.[10] .Development of Zubair pushed up Eni's estimates for global investment to approximately $72 billion in the20102013 time frame, an increase of 8% from the 20092012 plan,[11] with target production expected to beprogressively reached within the next six years and maintained for seven years thereafter.[12] . The deal has thepotential to be extended to 25 years, and the consortium plans to increase the field's production to 1.2 million bpdfrom the current level of 195,000 bpd.[13]

Eni had originally proposed a service contract of over $4 a barrel, but agreed to accept $2 a barrel after BritishPetroleum accepted the same for the Rumaila field in November 2009.An article in Business Week quoted ENI as saying that "clarifications from Iraq on tax-related issues were critical inthe decision to accept a lower price".[14]

Eni also led a losing bid for the Halfaya contract area.

http://eiti-reporting.net/wiki/index.php?title=Missan

Eni 20

CSR ActivitiesENI's CSR policies and highlights according to official company publications include: In 2009, Eni has been "Best in Class" for the "Code of Conduct/Compliance" area within the Dow Jones

Sustainability Index World Eni joined the Extractive Industries Transparency Initiative in 2005, with the aim of progressively integrating the

concept of transparency into its management system Eni is committed to protect and promote human rights in all its areas of operations in compliance with the

Guidelines adopted in 2007 The Human Rights Compliance Assessment project: in 2008 two pilot projects have been completed in Nigeria

and in Kazakhstan, in 2009 three self assessments were carried out in Algeria, Egypt and in the Republic of theCongo.

2007 saw the introduction of Guidelines for the Protection and Promotion of Human Rights, where Eni set out itscommitment to implementing the principles outlined in its own Code of Ethics and in the most importantinternational standards, above all the United Nations' Universal Declaration of Human Rights.

In 2008, the Human Rights Compliance Assessment project was launched with the aim of evaluating Eni'scapacity to respect human rights in those contexts where there is the biggest risk of violation or complicity in theviolation of human rights.

Eni defined and constantly updates a single management system model which includes cyclical application ofHSE integrated audits

Nearly all of the Company's key operating unit management systems have obtained ISO 14001 certification When planning and constructing infrastructure for transporting energy, the route is chosen on the basis of its

environmental impact Eni is committed to the environmental remediation of contaminated areas also by adopting state-of-the-art

technology such as bioventing and phytoremediation

Transparency

EITI Supporter StatusEni is a supporter company of the EITI.

UN Global CompactEni has been a member of the UN Global Compact since 2001, and has submitted 7 reports since 2004 with theirnext communication on progress due in October 2010.

Notes[1] | Eni Company Profile (http:/ / uk. finance. yahoo. com/ q/ pr?s=ENI. MI) Yahoo Finance[2] | Eni Company Profile (http:/ / uk. finance. yahoo. com/ q/ pr?s=ENI. MI) Yahoo Finance[3] | Eni Company Profile (http:/ / www. fundinguniverse. com/ company-histories/ ENI-SpA-Company-History. html) Funding Universe[4] | Eni Company Profile (http:/ / uk. finance. yahoo. com/ q/ pr?s=ENI. MI) Yahoo Finance[5] | Eni Company Profile (http:/ / www. fundinguniverse. com/ company-histories/ ENI-SpA-Company-History. html) Funding Universe[6] | Eni Company Profile (http:/ / uk. finance. yahoo. com/ q/ pr?s=ENI. MI) Yahoo Finance[7] | Eni Profile (http:/ / www. agip. eni. it/ agip/ internal. do?icommand=show& RID=@25qGH|0?xoidcmWopk& menu=false& lang=en&

mncommand=openById& mnparam=agip_le_attivita_dell_eni& mnselected=agip_le_attivita_dell_eni) Eni Company website[8] | EU hits Italian energy group ENI with antitrust charges (http:/ / www. eubusiness. com/ news-eu/ 1237461423. 06/ ) EU business, March 20

2009[9] | Middle East: Iraq: European Companies Buy Oil (http:/ / www. nytimes. com/ 2002/ 09/ 28/ business/

world-business-briefing-middle-east-iraq-european-companies-buy-oil. html?pagewanted=1) The New York Times, Sep 28 2002

http://uk.finance.yahoo.com/q/pr?s=ENI.MIhttp://uk.finance.yahoo.com/q/pr?s=ENI.MIhttp://www.fundinguniverse.com/company-histories/ENI-SpA-Company-History.htmlhttp://uk.finance.yahoo.com/q/pr?s=ENI.MIhttp://www.fundinguniverse.com/company-histories/ENI-SpA-Company-History.htmlhttp://uk.finance.yahoo.com/q/pr?s=ENI.MIhttp://www.agip.eni.it/agip/internal.do?icommand=show&RID=@25qGH%7C0?xoidcmWopk&menu=false&lang=en&mncommand=openById&mnparam=agip_le_attivita_dell_eni&mnselected=agip_le_attivita_dell_enihttp://www.agip.eni.it/agip/internal.do?icommand=show&RID=@25qGH%7C0?xoidcmWopk&menu=false&lang=en&mncommand=openById&mnparam=agip_le_attivita_dell_eni&mnselected=agip_le_attivita_dell_enihttp://www.eubusiness.com/news-eu/1237461423.06/http://www.nytimes.com/2002/09/28/business/world-business-briefing-middle-east-iraq-european-companies-buy-oil.html?pagewanted=1http://www.nytimes.com/2002/09/28/business/world-business-briefing-middle-east-iraq-european-companies-buy-oil.html?pagewanted=1

Eni 21

[10] | Eni Consortium Finalizes Deal to Develop Iraq Oil Field (http:/ / online. wsj. com/ article/SB10001424052748704375604575023452117996146. html) The Wall Street Journal, January 25 2010

[11] | Eni Gains Momentum in Iraq (http:/ / www. zacks. com/ stock/ news/ 34739/ Eni+ Gains+ Momentum+ in+ Iraq+ ) Zacks InvestmentResearch, May 26 2010

[12] | Eni Consortium to Redevelop Zubair Field in Iraq (http:/ / www. rigzone. com/ news/ article. asp?a_id=86237) Rigzone News, January 22,2010

[13] | Eni Consortium Finalizes Deal to Develop Iraq Oil Field (http:/ / online. wsj. com/ article/SB10001424052748704375604575023452117996146. html) The Wall Street Journal, January 25 2010

[14] | Why Oil Majors Are Coming Back to Iraq (http:/ / www. businessweek. com/ magazine/ content/ 09_46/ b4155000179541. htm) BusinessWeek, November 4, 2009

Exxon Mobil

Oilfields in Iraq West Qurna

Other Middle East Kuwait, Qatar

Type Public Company

Founded 1999 (merger) 1911 (Standard Oil of New Jersey) 1911 (Standard Oil of New York) 1870 (Standard Oil)

Headquarters Irving, Texas, USA

Key People Rex W. Tillerson, CEO

Products Fuels, Lubricants, Petrochemicals

Revenue $310.58 billion USD (2009)[1]

Operating Income $34.77 billion USD (2009)[1]

Net Income $19.28 billion USD (2009)[1]

Employees 79,900 - March 2009

Total Assets $233.32 billion USD (2009)[1]

Total Equity $110.56 billion (2009)[1]

Website Exxonmobil.com [2]

Global Snapshot

Current Global ProfileExxonMobil is an American based company which is currently the world's largest publicly traded[3] international oiland gas company[4] . It began life as the Standard Oil Company in 1882[5] and became ExxonMobil in 1999 as analliance of two of the direct descendants of John D. Rockfeller's Standard Oil Company- Exxon and Mobil[6] . Theyoperate under several divisions and hundreds of affiliates with names that include ExxonMobil, Exxon, Esso orMobil[7]

At the end of 2009, the companys acreage holdings totaled 10.2 million net acres, of which 2.3 million net acreswere offshore with approximately 7.5 billion oil-equivalent barrels of the companys reserves classified as provedundeveloped[7] .In 2006, Exxon Mobil announced the highest quarterly profits to date reported by a publicly-traded US company, of$10.7 billion[8]

http://online.wsj.com/article/SB10001424052748704375604575023452117996146.htmlhttp://online.wsj.com/article/SB10001424052748704375604575023452117996146.htmlhttp://www.zacks.com/stock/news/34739/Eni+Gains+Momentum+in+Iraq+http://www.rigzone.com/news/article.asp?a_id=86237http://online.wsj.com/article/SB10001424052748704375604575023452117996146.htmlhttp://online.wsj.com/article/SB10001424052748704375604575023452117996146.htmlhttp://www.businessweek.com/magazine/content/09_46/b4155000179541.htmhttp://eiti-reporting.net/wiki/index.php?title=Rex_W._Tillersonhttp://www.exxonmobil.com

Exxon Mobil 22

In 2009, ExxonMobil invested $600 million in a five-year deal with gene scientist Craig Venter to produce biofuelfrom algae[8] . Venter has recently been in the news for announcing in May 2010 that he has produced first-eversynthetic life-form[9]

Company Report HighlightsExxon Mobil has reported its earnings from 2009 as $17.1 billion, a sharp decrease as compared with earnings of$35.4 billion from 2008. However, 2009 also saw the investment of a record $27 billion in business and the start upof eight major projects in the United States, the United Kingdom, Norway, Italy, and Qatar.In 2009, they produced 2,387 thousand barrels of oil per day, an increase on 2008's figure of 2,405. The companyreported record performance in workforce safety and is widely regarded as the industry leader among thesupermajors with regards to their low incident rates for work-related injuries and illnesses, with employment figuresof 80,000 people as of 2009.A multimillion dollar research initiative with Synthetic Genomics Inc was launched in 2010 to explore thedevelopment and commercialization of algae-based biofuels.[10]

Operations in Iraq

HistoryHistorically, ExxonMobil held a 23.75% share (held in two equal parts by the then-separate companies of Exxon andMobil) in the Iraq Petroleum Company along with Total, Shell and British Petroleum[11] which, after being formedin 1928[12] gained full control over Iraq's oil after contracts in the 1930s[13] and thus kept Iraq's oil reserves underforeign control for more than 40 years[12] .

2009 Service ContractsIn 2009 [14] the company was in a consortium with Shell which won the contract to develop the West Qurna oil field,a field which holds holds 8.7 billion barrels in proven oil reserves,[15] thus ensuring their position as one of thelargest players in postwar Iraq.[16] This agreement was formalised in January 2010 when ExxonMobil Iraq Limited,an affiliate of ExxonMobil, signed an agreement with the Iraq Ministry of Oil stating the consortium members asExxonMobil as the lead contractor with 60% interest, Oil Exploration Company (owned by the Iraq government)with 25% interest, and Royal Dutch Shell with 15% interest.[17]

They have guaranteed to increase oil production levels from the current 270,000 barrels a day to 2.25 million barrelsa day within seven years, for which a licence fee of $1.90 a barrel will be paid by the Iraqi government[16] and thegroup led by Exxon will reportedly receive $1.6 billion per year[18] .

Water Injection ProjectAbdul Mahdy Al Ameedi, director of the Oil Ministrys Petroleum Contracts and Licensing Directorate, announcedin April 2010 that ExxonMobil has been picked to lead a multibillion-dollar water-injection project on behalf ofinternational oil companies that won contracts in southern Iraqi oilfields. He added that the cost will be distributedamong those majors that won development contracts for southern oilfields in the two auctions Iraq held last year. [19]

.Ameedi said the project would process some 10 to 12 million barrels of water a day from the Persian Gulf forinjection into the southern fields. The plan is scheduled to take two to three years, ramping up as the southern oilfields increase their production."We are now having a problem to secure water from the Tigris and Euphrates rivers because water flow in both aredeclining," Ameedi said.[20]

http://eiti-reporting.net/wiki/index.php?title=British_Petroleumhttp://www.google.comhttp://eiti-reporting.net/wiki/index.php?title=West_Qurna%28field%29

Exxon Mobil 23

Other companies which are expected to join forces with Exxon, are Shell, operator of Majnoon oil field, Eni,operator of Zubair, Lukoil, operator of West Qurna Phase 2, China National Petroleum Corporation, operator ofHalfaya, and Malaysia's Petronas, operator of Garraf.

CSR ActivitiesExxonMobil's 2009 Corporate Citizenship Report [21] includes the following highlights[22] : Greenhouse gas emissions reduced by three million metric tons, the equivalent of taking 600,000 cars off U.S.

roads Invested $1.3 billion in the past five years to increase energy efficiency and reduce greenhouse gas emissions. Improved energy efficiency across its refining and chemical operations, keeping it on track to meet its target of

improving energy efficiency by at least 10 percent between 2002 and 2012. Achieved zero spills from ExxonMobil owned and operated marine vessels and one leak of trace amounts from a

long-term chartered marine vessel in 2009. Increased its purchases of materials and services from minority- and women-owned businesses based in the

United States by 43 percent from 2008 to $863 million. Provided $235 million in combined corporate giving in the form of cash, goods and services worldwide, including

donations of $39 million from ExxonMobil employees and retirees. Employed a variety of economic support and incentive programs for capacity building -- collectively referred to

as national content development. In Nigeria for example, ExxonMobil awarded contracts totaling more than $1.8billion to Nigerian-registered companies, and 43 percent of total in-country spending was retained in Nigeria.

Interestingly, it was the Exxon Valdez oil spill of 24 March 1989 which has been largely attributed to triggering themodern corporate social responsibility movement[23]

TransparencyDespite CSR efforts in the public domain by ExxonMobil, projects such as ExxonSecrets [24] exist with the statedaim of highlighting activities by Exxon-funded groups - and scientists they work with - to rebutt scientific consensusof the urgency of addressing global warming, and to promote a delay in action to fix the problem[25]

In 2007, a group called the Union of Concerned Scientists produced a report[26] alleging that the company hadadopted disinformation tactics from the tobacco industry with regards to climate change, apparently spending nearly$16 million between 1998 and 2005 to a network of 43 advocacy organizations that seek to challenge publicconsensus on global warming science[10]

The company announced in its 2008 corporate citizenship report it would cut funds to groups whose position onclimate change could divert attention from the need to find new sources of clean energy. This came after Greenpeacehad publicised what it called a "climate denial industry" over the last decade, with $23m given to groups that playdown the risks of burning fossil fuels[10] , in 2009 their records showed that they were continuing to fund lobbygroups that questioned the reality of global warming and handed over hundreds of thousands of pounds to such lobbygroups in 2008[27] .In May 2010, ExxonMobil faced a proposal put forth by As You Sow [28], a shareholder advocacy organizationbased in San Francisco, asking ExxonMobil to disclose what it is doing to reduce risks from toxic chemicals innatural gas drilling, and consider alternatives[29] . The proposal was defeated after winning support from 26.3% ofshareholders of the company producing a report outlining risks tied to oilsands projects[30]

http://eiti-reporting.net/wiki/index.php?title=China_National_Petroleum_Corporationhttp://www.exxonmobil.com/Corporate/Imports/ccr2009/pdf/community_ccr_2009.pdfhttp://www.exxonsecrets.orghttp://www.asyousow.org

Exxon Mobil 24

EITI Supporter StatusExxon Mobil is a supporter company of EITI, and has actively involved in helping to establish transparencyagreements to disclose government revenues in the countries in which they have significant activity, includingKazakhstan, Equatorial Guinea and Nigeria.[31]

UN Global CompactExxon Mobil is not a member of the UN Global Compact.

Operations in other countriessee Exxon Mobil in Qatar

Notes[1] | Income Statement (http:/ / finance. yahoo. com/ q/ is?s=XOM& annual), Yahoo Finance[2] http:/ / www. exxonmobil. com[3] Current quote for Exxon Mobil on Bloomberg (http:/ / www. bloomberg. com/ apps/ quote?ticker=XOM:US)[4] | ExxonMobil- About Us (http:/ / www. exxonmobil. com/ Corporate/ about. aspx)[5] | ExxonMobil History (http:/ / www. exxonmobil. com/ corporate/ history/ about_who_history. aspx), ExxonMobil[6] | ExxonMobil Company Profile (http:/ / uk. finance. yahoo. com/ q/ pr?s=XOM), Yahoo Finance[7] | ExxonMobil Corporation Profile (http:/ / www. reuters. com/ finance/ stocks/ companyProfile?symbol=XOM. N), Reuters[8] | Exxon profits surge to new record (http:/ / news. bbc. co. uk/ 2/ hi/ business/ 4662474. stm), BBC News, Monday, 30 January 2006[9] | Time for a debate over synthetic life (http:/ / blogs. telegraph. co. uk/ news/ geoffreylean/ 100040657/ time-for-a-debate-over-synthetic-life/

), The Telegraph, 23rd May, 2010[10] | Exxon Mobil 2009 Summary Annual Report (http:/ / thomson. mobular. net/ thomson/ 7/ 3095/ 4222/ document_0/ XOM_SAR09. pdf)[11] | Oil Companies Hold Down Production in Iraq (http:/ / www. globalpolicy. org/ component/ content/ article/ 169/ 36380. html)[12] | Oil Giants Return to Iraq (http:/ / www. independent. co. uk/ news/ world/ middle-east/ oil-giants-return-to-iraq-851036. html), The

Independent, Friday, 20 June 2008[13] | BP Stealing Iraqs Future (http:/ / www. iraqoccupationfocus. org. uk/ resources/ BP_Stealing_Iraqs_Future. pdf), Shareholder Briefing

by PLATFORM April 2008.[14] http:/ / www. google. com[15] | Exxon Consortium OKs Iraq Contract Changes (http:/ / www. rigzone. com/ news/ article. asp?a_id=85961), Rigzone, January 19, 2010[16] | ExxonMobil wins $50bn contract (http:/ / www. guardian. co. uk/ world/ 2009/ nov/ 05/ exxonmobil-iraq-oil-contract-qurna), The

Guardian, 5 November 2009[17] | ExxonMobil Signs Agreement with Iraq (http:/ / www. businesswire. com/ portal/ site/ home/ permalink/ ?ndmViewId=news_view&

newsId=20100125005815& newsLang=en), Business Wire, 25 January 2010[18] | Iraq Opens Up to Foreign Oil Majors (http:/ / www. businessweek. com/ globalbiz/ content/ mar2010/ gb2010034_232444. htm),

Bloomberg Business Week, March 4, 2010[19] | ExxonMobil to lead Iraq water injection project (http:/ / www. thepeninsulaqatar. com/ Display_news. asp?section=Business_News&

subsection=market+ news& month=April2010& file=Business_News2010042004019. xml), Bloomberg Business Week, March 4, 2010[20] Exxon Spearheads Iraqi Water-Injection Project (http:/ / www. rigzone. com/ news/ article. asp?hpf=1& a_id=91246), Rigzone quoting Dow

Jones, April 10, 2010[21] http:/ / www. exxonmobil. com/ Corporate/ Imports/ ccr2009/ pdf/ community_ccr_2009. pdf[22] | ExxonMobil Outlines Achievements in Environmental, Safety, Economic & Social Performance (http:/ / www. marketwatch. com/ story/

exxonmobil-outlines-achievements-in-environmental-safety-economic-social-performance-2010-05-25?reflink=MW_news_stmp) MarketWatch, May 25th 2010

[23] | 20 years on from Exxon Valdez (http:/ / www. ethicalcorp. com/ content. asp?ContentID=6401) Ethical Corporation, 24 March 2009[24] http:/ / www. exxonsecrets. org[25] | ExxonSecrets, Greenpeace USA (http:/ / www. greenpeace. org/ usa/ campaigns/ global-warming-and-energy/ exxon-secrets)[26] | Smoke, Mirrors & Hot Air (http:/ / www. ucsusa. org/ assets/ documents/ global_warming/ exxon_report. pdf), How ExxonMobil Uses Big

Tobaccos Tactics to Manufacture Uncertainty on Climate Science[27] | ExxonMobil continuing to fund climate sceptic groups (http:/ / www. guardian. co. uk/ environment/ 2009/ jul/ 01/

exxon-mobil-climate-change-sceptics-funding), The Guardian, Wednesday 1 July 2009[28] http:/ / www. asyousow. org[29] | ExxonMobil Shareholders Strongly Support Disclosure (http:/ / news. yahoo. com/ s/ usnw/ 20100526/ pl_usnw/ DC11376), Yahoo News,

Wed May 26 2010

http://eiti-reporting.net/wiki/index.php?title=Exxon_Mobil_in_Qatarhttp://finance.yahoo.com/q/is?s=XOM&annualhttp://www.exxonmobil.comhttp://www.bloomberg.com/apps/quote?ticker=XOM:UShttp://www.exxonmobil.com/Corporate/about.aspxhttp://www.exxonmobil.com/corporate/history/about_who_history.aspxhttp://uk.finance.yahoo.com/q/pr?s=XOMhttp://www.reuters.com/finance/stocks/companyProfile?symbol=XOM.Nhttp://news.bbc.co.uk/2/hi/business/4662474.stmhttp://blogs.telegraph.co.uk/news/geoffreylean/100040657/time-for-a-debate-over-synthetic-life/http://blogs.telegraph.co.uk/news/geoffreylean/100040657/time-for-a-debate-over-synthetic-life/http://thomson.mobular.net/thomson/7/3095/4222/document_0/XOM_SAR09.pdfhttp://www.globalpolicy.org/component/content/article/169/36380.htmlhttp://www.independent.co.uk/news/world/middle-east/oil-giants-return-to-iraq-851036.htmlhttp://www.iraqoccupationfocus.org.uk/resources/BP_Stealing_Iraqs_Future.pdfhttp://www.google.comhttp://www.rigzone.com/news/article.asp?a_id=85961http://www.guardian.co.uk/world/2009/nov/05/exxonmobil-iraq-oil-contract-qurnahttp://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100125005815&newsLang=enhttp://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100125005815&newsLang=enhttp://www.businessweek.com/globalbiz/content/mar2010/gb2010034_232444.htmhttp://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=market+news&month=April2010&file=Business_News2010042004019.xmlhttp://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=market+news&month=April2010&file=Business_News2010042004019.xmlhttp://www.rigzone.com/news/article.asp?hpf=1&a_id=91246http://www.exxonmobil.com/Corporate/Imports/ccr2009/pdf/community_ccr_2009.pdfhttp://www.marketwatch.com/story/exxonmobil-outlines-achievements-in-environmental-safety-economic-social-performance-2010-05-25?reflink=MW_news_stmphttp://www.marketwatch.com/story/exxonmobil-outlines-achievements-in-environmental-safety-economic-social-performance-2010-05-25?reflink=MW_news_stmphttp://www.ethicalcorp.com/content.asp?ContentID=6401http://www.exxonsecrets.orghttp://www.greenpeace.org/usa/campaigns/global-warming-and-energy/exxon-secretshttp://www.ucsusa.org/assets/documents/global_warming/exxon_report.pdfhttp://www.guardian.co.uk/environment/2009/jul/01/exxon-mobil-climate-change-sceptics-fundinghttp://www.guardian.co.uk/environment/2009/jul/01/exxon-mobil-climate-change-sceptics-fundinghttp://www.asyousow.orghttp://news.yahoo.com/s/usnw/20100526/pl_usnw/DC11376

Exxon Mobil 25

[30] | ExxonMobil defeats resolution calling for greater disclosure (http:/ / www. timescolonist. com/ business/ ExxonMobil+ defeats+resolution+ calling+ greater+ disclosure/ 3076862/ story. html#ixzz0p8h6QQ00), Times Colonist, May 27 2010

[31] | Time for a debate over synthetic life (http:/ / www. exxonmobil. com/ Corporate/ community_transparency. aspx), The Telegraph, 23rdMay, 2010

Gazprom

Oilfields in Iraq Badra

Other Middle East N/A

Type Public/Joint stock company

Founded 1989

Headquarters Moscow, Russia

Key People Viktor A. Zubkov Chairman, Alexei B. Miller Vice-Chairman) & CEO

Products Natural gas, Oil, Gas pipeline

Revenue US$ 98.6 Billion

Operating Income 1.260 trillion RUB[1]

Net Income 777.380 billion RUB[1]

Employees 445,000

Total Assets 7.168 trillion RUB[1]

Total Equity 4.913 trillion RUB[1]

Website http:/ / www. Gazprom. com

Global Snapshot

Current Global ProfileGazprom is Russias largest company and is also the worlds largest gas producer[1] currently operating an extensivepipeline network stretching thousands of kilometers across Central Asia and Europe.[2] It also owns over 66 majorcompanies and has more than a 50% stake in a further 43.[3] Gazprom ranks 22nd in the 2009 annual ranking of theworld largest corporations published by Fortune magazine and has 456,000 employees.[2] Gazprom produces 83% ofRussias natural gas[1] , and is responsible for 8% of Russias GDP whilst providing about 20% of earnings to thefederal budget[3] . The Russian government holds over a 50% stake in the company. [1]

Company Report HighlightsFrom 2008 Annual Report:2008 saw a decrease in oil production by 5.9% from 2007, from 34 million tons to 32 million (about 640,000 barrelsa day), and a decrease in net profit from 360,450 million RR to 173,022 million RR ($57 billion). However, projectssuch as the Yamal Megaproject, the largest energy project in Russias contemporary history, were started along withthe implementation of the Sakhalin-Khabarovsk-Vladivostok gas transportation project.In 2008, Gazprom set out a goal to increase the proved oil reserves by 2.2 billion tons (about 15 billion barrels) andramp production up to 90100 million tons per year (two million barrels a day) by 2020, and began to draft a plan inorder to involve Gazprom Neft in the development of oil reserves belonging to OAO Gazprom and its gas productionsubsidiaries.

http://www.timescolonist.com/business/ExxonMobil+defeats+resolution+calling+greater+disclosure/3076862/story.html#ixzz0p8h6QQ00http://www.timescolonist.com/business/ExxonMobil+defeats+resolution+calling+greater+disclosure/3076862/story.html#ixzz0p8h6QQ00http://www.exxonmobil.com/Corporate/community_transparency.aspxhttp://www.Gazprom.com

Gazprom 26

Operations in Iraq

HistoryGazprom's work in Iraq began in 2009 with the contract as detailed below.

2009 Service ContractsIn 2009, Gazprom was in a consortium that included Kogas, Petronas, and TPAO which won a contract to developthe Badra oilfield. The consortium, in which Gazprom holds a 40% stake among the foreign partners, KOGAS 30%,Petronas 20% and TPAO 10%[4] originally requested US$6 per barrel of oil extracted from the field but lateraccepted the Oil Ministry's offer of US$5.50[5] . The consortium will invest a total of $3.52 billion to pump 170,000barrels of oil per day, with Gazprom Neft's deputy chief executive for exploration and production Boris Zilbermintssaying in December 2009 that the company would invest $2 billion in developing Badra and expected to pump thefirst crude from the field within three years[4] . Zilbermints has also said that it plans to reach full production of170,000 barrels per day within six to seven years of signing the contract[4]

CSR ActivitiesGazprom's official status on their social responsibilities is as follows: Every year Gazprom actively participates in social support projects by creating new jobs, rendering assistance to

economically disadvantageous people, servicemen, veterans and invalids of the Great Patriotic War,implementing social support programs for the inhabi