How to Select Buyers of Oil, Gas and Minerals
Guidance for State-Owned Enterprises
The sale of publicly-owned oil, gas and minerals can have a significant impact on
the development trajectory of resource-rich developing and emerging economies due
to the large volume of commodities sold and the amount of money involved. Therefore,
getting the buyer selection process right is a crucial step to prevent potential public
revenue losses that can arise through sub-optimal allocation and corruption.
This Guidance is intended to strengthen state-owned enterprises (SOEs)’ capacity to
market commodities and optimise the value of resources sold. It explains how SOEs
can set up transparent and competitive buyer selection procedures that reduce discretion,
close opportunities for favouritism and corruption, ultimately leading to increased
revenues for improved development outcomes. Based on the review of existing selection
and procurement processes, the Guidance provides recommendations for countering key
corruption challenges at each step of the buyer selection process, and identifies
examples of best practices. This Guidance complements the work of the Extractive Industries
Transparency Initiative (EITI) on recommended disclosures of buyer selection procedures
by SOEs.
Available from December 04, 2020
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