Highlights 2010

07.07.2011

In 2010, Oil for Development continued to develop its role as a key actor within the field of petroleum related development assistance. Five years after the programme started, we experience a steady demand for our product, which is to provide advice and competence building within petroleum sector management. Our cooperating partners are government agencies and to a lesser extent civil society organizations and parliamentary committees.

 

Main trends in 2010 include the following:

  • OfD continued to be a high priority programme in Norwegian development cooperation. the budget spending was NOK 222 million, 15 million higher than in 2009.
  • The programme provided tailormade assistance to more than 20 countries, taking a holistic approach towards petroleum sector management. This implies that resource management, revenue management and environmental management are addressed in a coordinated manner, and that principles of good governance, such as anti-corruption, transparency and accountability, are cross-cutting.
  • The funding for regional initiatives and South-South cooperation was doubled.


We are continuously improving our results based management systems in order to properly measure and communicate the results of our efforts. In this annual report, we present key achievements for each of the OfD partner countries. Some of these results can be directly linked to OfD’s programme activities, whereas OfD may have made only a relatively minor contribution towards Others. While the impact of some achievements is relatively easy to observe or measure, Others may only be observed as potential trends in a certain direction. Still, we believe that this report shows that the OfD programme is contributing to real and substantial impacts in some of our partner countries.

 

The majority of the funds were channelled towards OfD’s eight core countries

In 2010, we continued to concentrate our efforts on our core countries. The major part of OfD funding was thus provided to Angola, Bolivia, Ghana, Mozambique, Nigeria, Sudan, Timor-Leste and Uganda. Their share of the total budget increased from 46 percent in 2009 to 58 percent in 2010.

  • In Sudan, OfD played a central role in addressing postseparation issues. Preparation of scenarios for the petroleum sector made important contributions to the understanding of potential consequences of the 2011 South Sudan Referendum, both in the North and in the South. Competence building on Increased Oil Recovery (IOR) – a project that involved both the North and the South – demonstrated a likely win-win approach for the parties. 
  • OfD assistance was important for Ghana to improve the management of its petroleum resources and the environment. The technical assistance provided to the Ghana National Petroleum Cooperation and the Environmental Protection Agency improved the country’s ability to benefit from their Jubilee field petroleum resources and to follow up environmental assessments.
  • OfD assisted Timor-Leste in the EITI process. In July 2010, Timor-Leste was accepted as an EITI compliant country. The third country in the world.
  • The legislative framework in Mozambique was improved with contributions from OfD. A final draft of the environmental regulations to the petroleum sector was completed and approved by the Government of Mozambique.
  • In Uganda, the work on the Strategic Environmental Impact Assessment (SEA) of the Albertine Graben moved forward. With assistance from OfD, a Steering Committee for the SEA was established.
  • An evaluation of the OfD programme in Nigeria confirmed that OfD had provided valuable support to Nigeria, especially within data management, gas management and bidding processes, and in general improved the petroleum authorities’ ability to carry out their responsibilities. 
  • Competence building has helped Bolivia improve its petroleum resource management. Technical assistance within a range of resource related issues, such as data management and seismic interpretation, has been provided through the OfD programme.
  • In Angola, the organizational capacity of the Ministry of Petroleum was strengthened through an OfD programme. The capacity for organizational development, strategy planning, data management and inspection tasks was improved in close cooperation with OfD.

 

Cooperation agreements were established and some programmes were completed

In 2010, new cooperation and institutional agreements covering resourceand environmental management with Ghana, and agreements regarding resource-, revenue- and environmental management with Uganda were signed.

The cooperation within environmental management was strengthened with Iraq, Mozambique and Sudan. Areas of cooperation were defined, and workshops for Sudan were held in both Khartoum and Juba, as well as in Amman and Istanbul for Iraq.

A programme to assist Cuba with developing its upstream petroleum sector was initiated. The programme comprises capacity building within government agencies in the fields of resource management, environment and safety, and legal and technical issues related to offshore petroleum exploration and production with a focus on deep water drilling.

In Madagascar – no longer an OfD core country – the programme remained inactive. The cooperation with Cambodia, Kenya, South Africa and Zambia came to an end.

 

The OfD programme benefited from international cooperation

While Norwegian expertise and experience remain cornerstones in the OfD programme, we are also closely aligned with evolving international best practice standards for petroleum sector governance. In 2010, OfD continued to cooperate with a range of international institutions, including the Extractive Industries Transparency Initiative (EITI), the International Monetary Fund (IMF), the World Bank through the Petroleum Governance Initiative, the Global Gas Flaring Reduction Partnership (GGFR) and the African Centre for Economic Transformation (ACET). OfD also assisted in the development of the Natural Resource Charter, led by Professor Paul Collier. On the environmental side, the cooperation with the International Association for Impact Assessment (IAIA) continued, as did the working relationship with the Netherlands Commission for Environmental Assessment (NCEA).

In line with the priority given to women’s rights and gender equality in Norwegian foreign policy, OfD and the Clean Energy Initiative in Norad entered into an agreement with Energia, a leading international network on gender and sustainable energy. The objective is to strengthen the work on rights and gender equality within the two programmes.

The assistance provided to government agencies was supplemented by support to local civil society organizations, primarily through Norwegian and international non-governmental organizations. In 2010, seven Norwegian organizations, in addition to the Revenue Watch Institute (RWI), were granted funds for this purpose.

 

Enhanced focus on regional initiatives and South-South cooperation

OfD arranged eight regional workshops in 2010, covering among Other things anti-corruption, petroleum data management, legal framework for petroleum operations, and environmental management of petroleum activities in the Amazon. A workshop on oil, fish and environment gathered officials from nine African countries in Luanda, Angola. Good governance and corruption prevention was the focus of a workshop in Maputo, Mozambique, which gathered representatives from civil society, the private sector and authorities from Angola, Mozambique, São Tomé and Príncipe and Timor-Leste. These workshops provide important arenas for South- South cooperation and professional exchange between institutions and across borders.

OfD also contributed to the launching of the Extractive Resources Facility in ACET. The initiative will provide technical assistance to resource-rich African countries using experienced African experts. A specific aim of OfD’s support to ACET is to promote the return of Africans with relevant skills and education from the diaspora.