First Report of the Extractive Industries Transparency Initiative in Equatorial Guinea

Organization: Equatorial Guinea Extractive Industries Transparency Initiative
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The Extractive Industries Transparency Initiative in Equatorial Guinea has produced its first report, which is divided into two parts. The first describes the situation of the extractive industries in the country and gives background on the process of implementing EITI. The second part is the reconciliation report carried out by the independent auditing company Deloitte & Associés, which was selected by the National Commission on EITI-GE to perform this task. The data collected and systematized in this report is for the years 2007 and 2008.
The hydrocarbon sector has swiftly increased its importance in Equatorial Guinea’s economy since the discovery of significant offshore deposits in 1995. Indeed, in 2007, crude oil and its derivatives accounted for 84% of GDP, 93% of tax revenue and almost all of the country’s exports.  

Equatorial Guinea applied to join the EITI in 2004 and in February 2008 received the status of Candidate Country. This report was launched in March 2010 with the participation of nine companies from the hydrocarbon sector, including two state-owned companies, which agreed to disclose their payments to the state. However, this data is presented in aggregated form.

The report shows that hydrocarbon revenues received by the Government of Equatorial Guinea in 2007 amounted to over nine billion CFA francs and over four billion dollars. For payments in dollars, a USD 288,557 discrepancy between the payments declared by the companies and the income declared by the Government was reported under the category "other revenues."

In 2008, the government claimed to have received 9.500 million CFA and nearly six billion dollars in payments. However there was a discrepancy of 59 thousand dollars and 606 million CFA francs from the data of government revenue and payments reported by companies. The report states that this discrepancy corresponds to amounts declared and justified by the oil companies, but not identified by the treasury.