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Online Mapping Tool of State-owned Enterprises and their subsidiaries

 

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ONLINE MAPPING TOOL OF STATE-OWNED ENTERPRISES AND THEIR SUBSIDIARIES 

PILOT PROJECT (FEBRUARY – MAY 2021)

 

Why an online mapping tool of State-Owned Enterprises and their Subsidiaries?

This Online Mapping Tool of State-Owned Enterprises and their Subsidiaries is an output of the OECD Development Centre’s Thematic Dialogue on Commodity Trading Transparency, established in 2017 under the co-chairmanship of Nigeria and the United Kingdom. Since then, the Thematic Dialogue has worked towards the development of complementary and mutually supportive tools that home countries, trading companies, producing countries and their including state-owned enterprises (SOEs) can use to reduce drivers of corruption and associated illicit financial flows.

Click to learn more about the OECD work on commodity trading

What does this online tool cover and who can use it?

While originally conceived to support buyers in determining whether the seller they are dealing with is an SOE, the on-line mapping tool covers not just subsidiaries selling oil, gas and minerals, but all subsidiaries of selected SOEs in order to increase the utility of the tool for a wider number of potential end-users for improved accountability. These include civil society organisations and citizens seeking information about state ownership.

Scope of the pilot project

The pilot of this tool maps 10 state-owned enterprises (SOEs) and their subsidiaries from Colombia, People’s Republic of China, Kazakhstan, Indonesia, Brazil, South Africa, Thailand and Republic of the Congo.

The SOE Mapping Tool encompasses enterprises directly owned by the state and their subsidiaries from OECD and non-OECD countries. The SOE Mapping Tool relies on the definition of SOEs contained in the 2015 edition of the OECD Guidelines on Corporate Governance of State-Owned Enterprises to select the corporate entities for which the SOE Mapping will track its subsidiaries:

“… any corporate entity recognised by national law as an enterprise, and in which the state exercises ownership, should be considered as an SOE. This includes joint stock companies, limited liability companies and partnerships limited by shares. Moreover statutory corporations, with their legal personality established through specific legislation, should be considered as SOEs if their purpose and activities, or parts of their activities, are of a largely economic nature.”

The OECD Guidelines on Corporate Governance of State-Owned Enterprises consider as SOEs enterprises that are under the control of the state, either by the state being the ultimate beneficiary owner of the majority of voting shares or otherwise exercising an equivalent degree of control. However, the OECD Guidelines do not define in any detail what is meant by “control”. Under the terms of the instrument, any state ownership above 10% of the voting stock might potentially qualify. For the purpose of the present pilot, any company is considered as an SOE (whether a parent or subsidiary) if the state holds directly or indirectly over 25% of the equity capital of the company.

How was this pilot online mapping tool developed?

The OECD has selected ten SOEs for involvement in the pilot phase of the SOE Mapping Tool: CNOOC (China), Ecopetrol (Colombia), Kazmunaygaz (Kazakhstan), Pertamina (Indonesia), Petrobras (Brazil), PetroChina (China), PetroSA (South Africa), PTT (Thailand), Sinopec Group (China) and Société nationale des pétroles du Congo (SNPC) (Republic of the Congo).

These ten SOEs have been selected based on the availability of specific data sources (e.g. the Orbis database), the desire to reflect a geographic mix of SOEs, as well existing OECD relationships with the SOE.

The OECD has undertaken an initial mapping of the subsidiary entities of those SOEs. The mapping process involves accessing information available on commercial databases (principally the Orbis database) and publicly available information (SOE annual reports, stock exchange filings, etc.). With respect to each subsidiary entity, the OECD seeks to obtain the following information: the entity’s legal name, trading name, jurisdiction of registration/incorporation, relationship to parent entity, industry of operation, percentage ownership and corporate identity number.

For the pilot phase, the OECD mainly used the Orbis database to collect the subsidiary information for the ten selected SOEs. Orbis is a commercial database that covers 400 million companies around the world. Besides the financial information, it provides comprehensive information on ownership linkages between a company and its shareholders, as well as the ultimate owner of each company. The Orbis database is the most comprehensive database for unlisted companies and its coverage extends to listed companies as well. It collects information from more than 170 providers, as well as hundreds of proprietary sources including: information providers, beneficial owners registers (e.g. the Italian Company Registry and the UK People with significant control Registry), company records, financial strength providers, ratings agencies, news, industry and company records among others. The collected information is treated, appended and standardised to be comparable and to increase its quality.

Using the Orbis database, the OECD is able to identify both direct and indirect subsidiaries of SOEs.  For each SOE, the subsidiaries are identified by first selecting all companies for which the SOE appears as their ultimate owner with over 25% of the equity capital. Moreover, the largest direct shareholder of each subsidiary is identified to generate the subsidiary‑shareholder links. Using all this information, the corporate ownership structure has been constructed identifying each entity in the group and their position in each layer of the structure.

How was information collected verified?

The OECD has sought to engage with the selected SOEs and/or their state-owners to verify data collected in the initial mapping of the subsidiaries and ensure that the information collected in respect of each subsidiary entity is correct and that no other relevant subsidiaries are missing. This process has involved consultations with relevant members of the OECD Working Party on State Ownership and Privatisation Practices (including the Working Party’s regional partners in Asia and Latin America), relevant Members of the Governing Board of the OECD Development Centre, relevant EITI countries, and countries participating in the Policy Dialogue on Natural Resource-based Development.

What’s next?

Subject to available funding, the SOE Mapping Tool can be expanded beyond the ten selected SOEs into a global mapping tool of SOEs and their subsidiaries. Through the development of a global SOE Mapping Tool, the OECD would act as a repository of information to identify entities that are state-owned. The SOE Mapping Tool  would be an online living tool, combining data extrapolated from databases to which the OECD has access, and information from delegates to the OECD Working Party on State Ownership and Privatisation Practices (and from the Working Party’s regional partners in Asia and Latin America) and relevant Members of the OECD Development Centre, as well as the EITI countries and participants in the Policy Dialogue on Natural Resource-based Development.


SOE Mapping

Ecopetrol

Home country: Colombia
Industry: oil & gas exploration and production
Total number of subsidiaries: 37
Total number of layers of subsidiaries: 3
Total number of countries where subsidiaries are registered: 11

Click here to download the SOE Mapping data in Microsoft Excel format

CNOOC

Home country: People’s Republic of China
Industry: oil & gas exploration and production
Total number of subsidiaries: 342
Total number of layers of subsidiaries: 8
Total number of countries where subsidiaries are registered: 30

Click here to download the SOE Mapping data in Microsoft Excel format

Kazmunaygaz

Home country: Kazakhstan
Industry: oil & gas exploration and production
Total number of subsidiaries: 153
Total number of layers of subsidiaries: 6
Total number of countries where subsidiaries are registered: 22

Click here to download the SOE Mapping data in Microsoft Excel format

Pertamina

Home country: Indonesia
Industry: oil & gas exploration and production
Total number of subsidiaries: 100
Total number of layers of subsidiaries: 6
Total number of countries where subsidiaries are registered: 26

Click here to download the SOE Mapping data in Microsoft Excel format

Petrobras

Home country: Brazil
Industry: oil & gas exploration and production
Total number of subsidiaries: 1007
Total number of layers of subsidiaries: 4
Total number of countries where subsidiaries are registered: 15

Click here to download the SOE Mapping data in Microsoft Excel format

PetroChina

Home country: People’s Republic of China
Industry: oil & gas exploration and production
Total number of subsidiaries: 982
Total number of layers of subsidiaries: 7
Total number of countries where subsidiaries are registered: 29

Click here to download the SOE Mapping data in Microsoft Excel format

PetroSA

Home country: South Africa
Industry: oil & gas exploration and production
Total number of subsidiaries: 19
Total number of layers of subsidiaries: 2
Total number of countries where subsidiaries are registered: 8

Click here to download the SOE Mapping data in Microsoft Excel format

PTT

Home country: Thailand
Industry: oil & gas exploration and production
Total number of subsidiaries: 253
Total number of layers of subsidiaries: 7
Total number of countries where subsidiaries are registered: 26

Click here to download the SOE Mapping data in Microsoft Excel format

Sinopec Group

Home country: People’s Republic of China
Industry: oil & gas exploration and production
Total number of subsidiaries: 524
Total number of layers of subsidiaries: 10
Total number of countries where subsidiaries are registered: 30

Click here to download the SOE Mapping data in Microsoft Excel format

Société nationale des pétroles du Congo (SNPC)

Home country: Republic of the Congo
Industry: oil & gas exploration and production
Total number of subsidiaries: 3
Total number of layers of subsidiaries: 1
Total number of countries where subsidiaries are registered: 2

Click here to download the SOE Mapping data in Microsoft Excel format


Disclaimer

The OECD has sought to cross-check the information collected with overseeing competent authorities and companies concerned. The results of the pilot phase reflect comments received during the validation process between 10 May and 31 May 2021. It is understood that the corporate structure of SOEs may change over time and that any updates required after 1 June 2021 fall beyond the scope of this pilot.


 

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