Guidance note 26 - Reporting on first trades in oil
Relates to requirement 4.2
This guidance is also available in French (see attachments below)
This guidance note is the first effort by the EITI Working Group on Transparency in Commodity Trading to assemble guidance on ‘first trade’ reporting in oil. The guidance has three intended audiences: first, the EITI MSGs in implementing countries that will determine their respective country’s approach to reporting in this area; second the governments and SOEs that sell commodities, which can opt to directly disclose further information about these transactions; and third, buying companies who can use the guidance to inform their own reporting, or draw on it to achieve compliance with EITI MSG set reporting requirements in EITI implementing countries where they execute sales.
The guidance contains the following sections:
- Section 1: A model reporting template on ‘first trades’ of the state’s share in oil production. This section sets out core and additional data that could be reported to meet EITI standard requirements and allow for the efficient and effective interpretation and utilization of data by third parties.
- Section 2: Reporting contextual information about ‘first trades’. This section identifies the types of contextual information that a government, NOC or EITI Report may disclose, in order to ensure that stakeholders understand the commodity sale process and its role within the wider extractive sector and commodities supply chain.
- Section 3: Reporting on special cases of oil sales. This section identifies several types of special cases of oil sales and offers recommendations for how to report them.
- Annex - Separate excel sheet attached below containing Standard Template for Reporting on 'First Trades' (cargo by cargo disclosure example)
Overview of the guidance
Overview of an MSG-led reporting process
Section 1. Reporting on standard ‘first trades’
How should sale data be reported?
Standard ‘First trade’ data reporting template
Section 2: Reporting on contextual data
Section 3. Reporting on special cases of first trades
NOC sales to other domestic SOEs or domestic state-owned trading or downstream divisions
Pre-payment deals and oil-backed loans
Annex 1: Sample Standard Reporting Template