State-owned petroleum company Qatar Petroleum will join the EITI as a supporting company, announced EITI’s Corporate Engagement Manager Andy Irvine today, in a discussion of EITI’s outreach plans at the organisation’s Addis Ababa Board meeting. “It is encouraging to see a large and influential state-owned company like Qatar Petroleum join the EITI’s group of supporting companies” said Mark Robinson, EITI’s Executive Director. “The revised 2019 EITI Standard sets out new disclosure requirements for state-owned enterprises, which will bring far greater transparency to this group of companies.” State-owned enterprises (SOEs) are estimated to account for approximately 80% of the world’s oil reserves and 24% of mineral production. Currently 55 SOEs participate in the implementation of the EITI in 35 countries and at least 25 are represented in EITI multi-stakeholder groups. In terms of the 2019 Standard, SOEs are required to describe the rules and practices governing transfers of funds between SOEs and the state and to disclose details of loans provided by governments and SOEs to mining, oil and gas companies. Aligned with the focus on the systematic disclosure of EITI information, a key priority is to strengthen existing reporting frameworks so that SOE disclosures can be incorporated into published and audited financial statements. Welcoming the decision to join EITI Minister of State for Energy Affairs and President & CEO of Qatar Petroleum, Saad Sherida Al-Kaabi affirmed his personal commitment to open and transparent reporting throughout the region, commenting: “We will continue to pro-actively promote transparency throughout the petroleum industry. I likewise pledge to take a leadership role in advocating the EITI Principles internationally and throughout the MENA region.
Qatar Petroleum supports the State of Qatar’s National Vision 2030 of balancing the accomplishments that achieve economic growth with the human and resource needs of the people of Qatar. Our vision is to become one of the best national oil companies in the world, with roots in Qatar and a strong international presence.
The values adopted by QP reflect what we stand for and our Code of Conduct guides the decisions made and the actions taken in every aspect of our business affairs. QP aligns its system of corporate governance with its values and the principles outlined in its Code of Conduct, as well as the relevant laws and regulations.
QP’s Corporate Governance Framework guides the Board and management’s oversight of the company. The Decree Law and By-Laws establish fundamental principles and our framework adopts systems of rules, practices and processes that reflect best-in-class international standards for good governance, while at the same time complying with QP’s applicable regulatory obligations. Our governance principles ensure that adequate control, oversight and risk management mechanisms are in place across the organization, including in our subsidiaries and JV partnerships.
QP is committed to continuously strengthening its governance structure to encourage effective collaboration and alignment between its key organizational stakeholders. We review our systems to ensure we achieve international best practices in transparency, governance and accountability.
A Decree Law established Qatar Petroleum in 1974. The QP Board is responsible for the direction and oversight of QP and is accountable to the Supreme Council for Economic Affairs and Investment.
Mr. Saad Sherida Al Kaabi was appointed as the President & CEO of Qatar Petroleum in 2014. The President & CEO is responsible for QP’s overall business managing its operational and business development activities. In 2018, Mr. Saad Sherida Al Kaabi was appointed Minister of State for Energy Affairs and Vice Chairman of QP Board, in addition to his role as the President and CEO.
The QP Executive Leadership Team operates under the direction of the President & CEO, supporting the implementation of QP’s strategy and supervising management levels in QP.
The Board of Directors and management of QP have long recognized the importance of corporate governance practices that help ensure an environment of effective oversight and accountability. Our governance structure clarifies the set of relationships that constitute QP’s governance environment. This comprises the relationships between the Board of QP, its management, subsidiaries, JV partners and wider stakeholders.
Our Board of Directors appointed by H.H. the Emir of the State of Qatar, oversee the overall success of the organization’s business, including its financial strength. It serves as the ultimate decision-making body of the organization, except for those matters reserved with the State (via the Supreme Council for Economic Affairs and Investment). The Board fulfills its duties, including risk oversight, with the assistance of various appointed Board and Management Committees.
The Executive Leadership Team assists the President & CEO in the implementation of the organization’s strategy and oversight of operational management. The Executive Leadership Team is chaired by the CEO and comprises other senior leaders. They meet regularly to address matters concerning the entire organization.
The core of the ethics and compliance program at Qatar Petroleum is our Code of Conduct. All of our employees are required to read, understand and follow the principles outlined in the Code. We require them to acknowledge their understanding and compliance with the Code on an annual basis and believe in the continuous reinforcement of our standards through various training and awareness initiatives. Together these activities continually reinforce our standards for ethical and principled business conduct, in everything we do.
Qatar Petroleum is committed to ethical business conduct and has a zero tolerance policy on any form of bribery or corruption. We work proactively to ensure that corruption does not occur anywhere within our operations and comply with all applicable anti-bribery and corruption laws and international conventions. We likewise take additional care when doing business in countries known to have high levels of corruption and take steps to ensure that we know and trust our business partners, agents and intermediaries. We actively promote our standards with all our stakeholders.
Qatar Petroleum is equally committed to open and transparent reporting including the disclosure of our production, operating and financial results. We are taking steps to further enhance our disclosures to align with international standards for corporate reporting and have been working with several organizations to ensure we achieve these goals.
In 2019, Qatar Petroleum became a supporting member of the Extractive Industry Transparency Initiative (EITI). We took this step to demonstrate our commitment to fighting corruption and promoting transparency within the extractive industry. We are committed to the EITI Principles and feel that our on-going efforts to enhance our own disclosure practices demonstrate this commitment. We believe in the promotion of transparency throughout the extractive industries but most especially within the MENA region. We hope to take a leadership role in facilitating public debate on the topic and strive to provide opportunities for sustainable development in not only the petroleum resources of the State of Qatar but also for the other countries in which we operate.