White House to prod countries on oil revenue ‘transparency’

Business groups including the American Petroleum Institute and the U.S. Chamber of Commerce opposed the provision, arguing that it will hamstring U.S. companies competing against state-run or state-controlled Russian and Chinese firms.

The new requirements in the Wall Street bill are the work of Sens. Richard Lugar (R-Ind.) and Ben Cardin (D-Md.). They and other advocates of the disclosure say increased transparency of payments will help reverse the “resource curse” in which some energy- and mineral-rich nations in Africa and elsewhere are plagued by high levels of corruption, conflict and poverty.

The White House statement strongly praises the provision, which also requires companies to disclose their payments to the U.S. government.

“This provision is an essential new tool in promoting transparency in the oil and mineral sectors. This legislation will immediately shed light on billions in payments between multinational corporations and governments, giving citizens the information they need to monitor companies and to hold governments accountable,” the White House said.

“It will shine a sustained light on the relationship between corporations and governments in the oil and mineral sectors, and make impossible the kind of back-room dealings that cost taxpayers in lost royalties,” the statement adds.