# Exxon, Chevron conceal payments to some governments -watchdog
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-23
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: US Oil Majors Exxon and Chevron Fail Transparency Standard
Meta Description: Biggest U.S. oil majors Exxon Mobil Corp and Chevron Corp found lacking in transparency standards set by anti-corruption body EITI.
URL: https://financedigest.com/exxon-chevron-conceal-payments-to-some-governments-watchdoghtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-09-22t170308z1lynxmpeh8l0wgrtroptp4usa-transparency-oil-1736837802632-compressed.jpg)

By Timothy Gardner

WASHINGTON (Reuters) -U.S. [oil majors Exxon Mobil Corp and Chevron](https://www.financedigest.com/shell-chevron-and-petrobras-weigh-guyana-oil-auction-bids-sources.html "Shell, Chevron and Petrobras weigh Guyana oil auction bids -sources") Corp have failed to meet a core transparency standard set by the Extractive Industries Transparency Initiative, a global anti-corruption body on which the companies have board seats, EITI said on Wednesday.

[Exxon and Chevron have declined to publicly disclose taxes](https://www.financedigest.com/exxon-sues-eu-in-move-to-block-new-windfall-tax-on-oil-companies.html "Exxon sues EU in move to block new windfall tax on oil companies") and other payments they have made to governments in the countries where they operate that are not EITI members, the group said in a spreadsheet detailing member company adherence to its standards.

Norway-based EITI, founded two decades ago, has about 55 country members. It implements voluntary global standards to promote open and accountable management of oil, gas and [mineral resources](https://www.financedigest.com/copper-miner-teck-resources-rejects-glencores-22-5-billion-offer.html "Copper miner Teck Resources rejects Glencore’s .5 billion offer") to prevent corruption in all resource-rich countries.

Countries that Exxon has operated in that are not EITI members include Qatar, Pakistan and India, [according to its company](https://www.financedigest.com/more-than-twice-as-many-consumers-trust-customer-reviews-over-companies-themselves-according-to-research-from-smart-money-people.html "More than twice as many consumers trust customer reviews over companies themselves according to research from Smart Money People") website. Non-EITI [countries that Chevron has operated in include China](https://www.financedigest.com/china-us-india-among-the-top-36-countries-for-marketplace-expansion-in-2018.html "China, US, India among the top 36 countries for marketplace expansion in 2018") and Angola.

ConocoPhillips, which is not on the EITI board, is another member that does not disclose [payments to countries](https://www.financedigest.com/bnp-paribas-offers-nexo-standards-across-14-countries-to-enable-fast-interoperable-and-borderless-card-payment-acceptance-for-european-merchants.html "BNP Paribas Offers nexo standards Across 14 Countries to Enable Fast, Interoperable and Borderless Card Payment Acceptance for European Merchants") not in EITI, the group said. It has had operations in countries including Libya, Malaysia and China.

Exxon spokesperson Casey Norton said Exxon complies with all laws that are in effect today.

Chevron “supports efforts to promote revenue transparency that do not competitively disadvantage [impacted companies](https://www.financedigest.com/the-severe-impact-of-downtime-on-companies-bottom-lines.html "The severe impact of downtime on companies’ bottom lines") and their shareholders,” spokesperson Sean Comey said.

Conoco spokesperson Dennis Nuss said the company had no comment.

EITI’s release, based on publicly available information, could add pressure to the companies, already under fire from shareholders, activists and lawmakers for greenhouse gas emissions driving [climate change](https://www.financedigest.com/deloitte-research-reveals-inaction-on-climate-change-could-cost-the-worlds-economy-us178-trillion-by-2070.html "Deloitte research reveals inaction on climate change could cost the world’s economy US8 trillion by 2070").

It also highlights a widening governance rift between U.S.-based [oil majors and those in Europe](https://www.financedigest.com/explainer-what-would-be-the-impact-of-russian-oil-sanctions-in-europe.html "Explainer-What would be the impact of Russian oil sanctions in Europe?"), which are widely seen to be doing better on climate and transparency.

European-based companies BP, Shell and Total all publicly disclose their taxes and payments to non-EITI countries, the group said.

EITI published the data for the first [time since](https://www.financedigest.com/sterling-slides-below-1-15-for-first-time-since-2020.html "Sterling slides below .15 for first time since 2020") the standards were introduced in 2018, after pressure from civil society groups including Publish What You Pay-US (PWYP-US) and Oxfam America.

It is not mandatory that the companies, which as EITI members make annual [payments to help fund the group’s](https://www.financedigest.com/crown-agents-bank-owner-explores-sale-of-british-payments-group-sources.html "Crown Agents Bank owner explores sale of British payments group –sources") management, follow the group’s standards.

But EITI Board Chair Helen Clark said in July, without elaborating, that the board’s oversight committee would consider consequences for companies not meeting the [group’s expectations](https://www.financedigest.com/food-group-danone-raises-2022-outlook-as-third-quarter-sales-beat-expectations.html "Food group Danone raises 2022 outlook as third-quarter sales beat expectations"), possibly in October.

Clark said on Wednesday that [publication of the companies not following expectations will help EITI members “engage in dialogue to improve corporate accountability and transparency.” She said work](https://www.financedigest.com/the-new-fangled-normal-of-working-from-home-to-push-the-public-cloud-service-market.html "The “New-Fangled” Normal of “Working from Home” to Push the Public Cloud Service Market") remains to clarify the expectations, “but our hope is that it will encourage a ‘race to the top’ to meet or exceed them.

The U.S. Securities and Exchange Commission is set to consider in April implementing a measure of the 2010 [Wall Street](https://www.financedigest.com/asian-stocks-edge-up-before-u-s-jobs-data-defying-wall-street-selloff.html "Asian stocks edge up before U.S. jobs data, defying Wall Street selloff") reform law known as Dodd Frank that would require disclosures from energy and mining companies on payments to all foreign governments.

PWYP-US said the U.S. companies supporting EITI were getting the reputational benefit of EITI participation without [meeting the basic expectations](https://www.financedigest.com/how-omnichannel-cx-can-help-insurers-meet-customer-expectations.html "How omnichannel CX can help insurers meet customer expectations") for membership.

EITI’s company members and particularly those on its [board must ensure that group’s credibility is not weakened by companies that are not being transparent](https://www.financedigest.com/2016-must-be-the-year-of-board-level-transparency-and-good-governance.html "2016 must be the year of board level transparency and good governance"), said Carly Oboth, PWYP-US interim director.

Otherwise, it will be [clear that this global transparency initiative has become a victim of corporate](https://www.financedigest.com/clearing-out-your-garage-benefiting-from-corporate-simplification-2.html "Clearing Out Your Garage – Benefiting from Corporate Simplification ") capture,” Oboth said.

(Reporting by Timothy GardnerEditing by Marguerita Choy, Steve Orlofsky, David Gregorio and Cynthia Osterman)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---