Republic of Lebanon
#Date#
The EITI is a global standard to promote good governance in the extractive sector implemented by more than
fifty
countries around the world, which requires the disclosure of information along the extractive industry value
chain and
is governed by an international board comprising governments, companies and civil society.
As the EITI is a government-led initiative, the Lebanese government recognises the standard as a tool to
formalise the
representation and inclusive participation of different stakeholders in the petroleum sector and to further
complement
the existing legislative framework put in place, which already imbeds transparency through different
channels alongside
disclosure requirements.
A country intending to implement the EITI is required to undertake a number of steps before applying to
become an EITI
country. These steps relate to government commitment (1.1), company engagement (1.2), civil society
engagement (1.3),
the establishment of a multi-stakeholder group (1.4) and agreement on an EITI work plan (1.5).
Requirement 1.1:The government is required to issue an unequivocal public statement of its
intention
to implement the EITI, appoint a senior individual to lead the implementation of the EITI, be fully,
actively and effectively engaged in the EITI process and ensure that senior government officials are
represented in the multi-stakeholder group.
Requirement 1.2: Companies must be fully, actively and effectively engaged in the EITI process,
there
must be an enabling environment for company participation and the government must ensure that there are no
obstacles to company participation in the EITI process.
Requirement 1.3: Civil society must be fully, actively and effectively engaged in the EITI
process,
there must be an enabling environment for civil society participation and stakeholders must be able to be
substantially engaged with the EITI process.
Requirement 1.4: The government is required to work with civil society and companies and
establish a
multi-stakeholder group to oversee the implementation of the EITI.
Requirement1.5: The MSG, in consultation with key EITI stakeholders, should agree on and
publish a
fully costed work plan containing measurable targets and timetable for implementation.
On the 25th of January 2017 the Council of Ministers, convened under the Chairmanship of the President of the
Republic General Michel Aoun, made a strong commitment to uphold transparency. The Cabinet issued an unequivocal
public statement declaring its intention to join the EITI. The Minister of Energy and Water has been assigned as
the EITI Champion while the Lebanese Petroleum Administration (LPA) has been identified as the National
Secretariat leading on the implementation of the EITI.
Most recently, During the EITI’s Global Conference in Paris in June 2019, the LPA – on behalf of the
Government of Lebanon – reiterated the national commitment to join the EITI while collaboratively working
with stakeholders to facilitate the CSOs election process.
The LPA abides by a participative approach with CSOs since the very beginning. For example the LPA in
partnership with international organisations such as the Natural Resource Governance Institute (NRGI) and
Publish What You Pay (PWYP) organized several workshops for stakeholders to support capacity building while
promoting an informed based dialogue.In March 2019, the Minister of Energy and Water publicly called upon civil
society organisations to independently undertake their election process. The open and transparent invitation was
disseminated on the LPA’s website and by international organisations facilitating the EITI’s
implementation.
Today, the candidature of Lebanon to the EITI is pending and conditional upon civil society undertaking an
independent election process to select their representative(s) within the EITI’s MSG.
The systematic disclosure of information through government systems is at the core of the EITI. Through its
laws, application decrees and exploration and production agreements, Lebanon’s legislative framework
already puts the systematic disclosure of information at the core of its management of the petroleum sector. As
a result, the EITI’s requirements on disclosure, revenue collection, auditing, reporting, conflicts of
interest, and beneficial ownership are already legally binding across the value chain of petroleum
activities.
Some of the laws ratified in addition to the existing offshore oil and gas legal framework include:
Another example setting precedents and showing Lebanon’s commitment to transparency is the Minister of
Energy and Water’s decision issued in March 2018, shortly after the signature of the two exploration and
production agreements, to publish the signed contracts. The contracts are publicly available on the LPA’s
website. The EITI Standard was modified in June 2019 to include the publication of contracts as a requirement
for all EITI countries.
Beneficial ownership – who are the flesh-and-blood people who control the companies that own or operate
licenses in the extractive sector – is another frontier area for the EITI where Lebanon is already making
significant progress. By 2020, all EITI countries have to ensure that companies that apply for or hold a
participating interest in an oil, gas or mining license or contract in their country disclose their beneficial
owners. Lebanon already has in place a draft decree addressing this issue. Beneficial ownership in
Lebanon’s oil and gas sector is governed by the Decree on Registration, Mortgaging and Transfer of
Petroleum Rights that remains to be ratified. In that respect, the decree defines beneficial ownership, contains
provisions about the petroleum register which will be made publicly available on the LPA’s website,
details the petroleum register information and highlights actions in case of violations or breaches of such a
decree to name a few.
