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Corruption and Other Leakages

Inge Amundsen, senior researcher, Chr. Michelsen Institute Friday, June 13th, 2014

2014 Natural Resource Charter Conference, Oxford

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The petroleum sector ideal

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Petroleum sector corruption

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Corruption in oil: companies

Paying up for access to resources

– Licences, contracts

Paying up for maximising profits

– Taxes, royalties, fees, …

– Exaggerated development costs

– Re-negotiation of and amendments to contracts

Paying up to pollute and abandon

– Regulatory exemptions

– Early abandon and sub-standard rehabilitation

(5)

Corruption in oil: government

Extraction for status, wealth

– Embezzlement, bribes, “commissions”, “contributions”

– “Nationalisation”, “privatisation”, monopolies – “Dead meat” oil companies

Paying up for power preservation

– Buying friends: favouritism, nepotism – Buying votes: elections, parliaments – Buying off rivals: co-optations

– Buying off institutions

– Buying instruments of coercion

Incentives to hold on to power Means to hold on to power

(6)

Capital flight: an indicator

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