Efficiency of the African oil and gas industry
The Netherlands Court of Audit is working with AFROSAI-E (the African Organisation of English- speaking Supreme Audit Institutions) and three African supreme audit institutions (those of Tanzania, Kenya and Mozambique) to improve the quality of their audits of the efficiency of the oil and gas industry. The partners are also sharing knowledge to improve this type of audit both in Africa and worldwide.
The programme runs from 2018 until 2020 and is being funded by the Dutch Ministry of Foreign Affairs.
The Netherlands Court of Audit is helping the supreme audit institutions of Tanzania, Kenya and Mozambique carry out six efficiency audits of the oil and gas industry.
We are providing substantive support to the audit teams and organising three regional workshops to promote knowledge sharing. One of the audits we are assisting is looking at the effectiveness of monitoring the costs incurred by the oil and gas industry to meet contractual obligations. The costs are usually deducted in whole or in part from the profits of oil and gas production in the country concerned. The contracts also stipulate that part of the net profit must then be remitted to the host country.
In collaboration with AFROSAI-E we are developing an online learning platform to share the knowledge and experience gained from the efficiency audits of the oil and gas industry with a wider audience.
The project is designed to achieve the following results:
- institutional strengthening of the three participating supreme audit institutions to carry out efficiency audits;
- regional knowledge sharing among supreme audit institutions to audit the oil and gas industry;
- greater consideration for the formulation of audit questions with a big impact;
- worldwide knowledge sharing by developing an online learning platform;
- more consideration for receiving a fair share of the income from the oil and gas industry.