WORKSHOP Building Knowledge on Petroleum Resources Management Nairobi, Kenya ● December 1-3 & 15-17, 2015 REPORT 1. INTRODUCTION Representatives from the Federal Government of Somalia The third phase of the process, starting in January 2016, will (FGS), Puntland, Galmudug, Jubaland and South West State consist of consultative meetings between authorities from the convened in Nairobi, Kenya for two knowledge-building Somali Peninsula with the aim of reaching a common workshops on petroleum resources management. The understanding and vision for the development of the workshops, organized by the Ministry of Petroleum and petroleum sector in Somalia. Mineral Resources (MoPMR) of Somalia, provided technical information designed to bring all participants to the same level In the fourth phase, Somali authorities will subsequently be of knowledge on all aspects required to create a shared vision responsible for updating the constitutional and legal for the Somali petroleum sector. framework with respect to the definition of ownership, management and revenue sharing of petroleum resources that These workshops are part of a program led by the FGS and meets the legitimate expectations of all Somali stakeholders. facilitated by the World Bank, to convene high-level meetings As part of this effort, inclusive participation of relevant between the FGS and Federal Member States (FMS) to stakeholders from the Somali Peninsula will be ensured. achieve a shared vision on petroleum ownership, control and revenue sharing of petroleum resources. In addition, the World In parallel, the World Bank will provide technical assistance to Bank provides limited but high priority technical assistance to the review of the petroleum policy, legal, fiscal and revenue the FGS in line with the Ministry of Petroleum and Mineral sharing frameworks for the Federal Republic of Somalia and Resources Annual Strategic Plan to the training of FGS staff to negotiate and manage petroleum contracts. The consultative process has four phases. The first phase of political accommodation served to understand the realities The international community contributes to this program and expectations from relevant decision makers across through the Multi-Partner Fund for Somalia (MPF). Somalia and agree on the importance to have an open space for knowledge and dialogue. The second phase of the process consisted of the technical knowledge-building workshops held in Nairobi, Kenya in December 2015. 2. INSIGHTS developed from the workshops • While expectations of oil resources in Somalia may be Participants have defined the following vision statement as modest, revenues can still be significant for the country. a starting point for achieving an agreement on ownership, control and revenue sharing of petroleum resources: • Somalia faces a range of challenges in the development of its petroleum sector, which require cooperation between “Somalia will exploit its petroleum resources FGS and FMS. e ff ectively to achieve peace, stability, shared prosperity and sustainable development for all • This is a historic moment for Somalia: a shared vision on Somalis through shared ownership and ownership, control and revenue sharing of petroleum responsibility. The principles of inclusiveness, equal resources can make the difference between revenue opportunity, transparency, accountability and streams contributing to inclusive economic development minimizing environmental and social impact will and resource-fueled conflict and economic regression. guide the development of the Somali petroleum sector”. • A clear willingness to come to an agreement was observed in both workshops across traditional fault lines • Both FMS and FGS recognize that they need each other and institutions. to achieve that vision. A willingness to compromise was demonstrated during the workshops. • Participants have benefited from an intensive knowledge- building program on a wide range of topics related to the • Participants recognize that transparency and sharing of petroleum value chain in a federal context, which is critical information is essential to continue to build the trust to create a similar basis of knowledge. required to achieve an agreement. Participants agreed not to repeat past mistakes. • The workshops were instrumental to establish communication between member states and the federal • Participants demonstrated a strong similarity of views government both at technical and decision-making levels. during the workshops across a wide range of topics. For Over the course of the workshops confidence and trust example, they held some of the key principles related to has increased, according to participants. sharing of petroleum wealth in common. • A momentum has been established amongst participants to achieve a shared Somali vision for the petroleum sector. • Member States need to have the comfort that their interest on an agreement on ownership, control and revenue are protected for the long term. sharing of petroleum resources. • A process has been outlined to create an agreement on • Many political and other tensions occurring in Somalia can the petroleum sector. In the first stage the Somali Leaders impact the progress of the process to reach an agreement. will agree on the mandate for the Technical Committee and Having said that, an agreement on petroleum resources the process. In the second stage the Technical Committee could act as a catalyst for other agreements in the country. will develop an agreement and propose options (through discussion of key issues, development of options, consultations etc.). In the final stage, the National Consultative Forum will amend or endorse the agreement and communicate to the Somali population. This process will commence in January 2016. • There is a growing awareness that a good and sustainable agreement based on joint dialogue and consensus is more important than a fast agreement. However the process to reach an agreement on ownership, control and revenue sharing of petroleum resources will need to align with the constitutional process and an interim agreement at an appropriate time may therefore be envisaged. “We hope to be able to take back this • Inclusiveness is essential for the legitimacy of the resulting information and be able agreement. FGS and FMS need to consider how to include to come up with appropriate policies, Somaliland, emerging member states and broader laws and legislation, and stakeholders as part of the consultations. come up with a proper agreement and • Both FGS and FMS requested continued access to framework”. Mariam technical expertise provided by the World Bank to inform Mohamed, FGS and facilitate the discussions in the Technical Committee delegation Agenda Workshop 1 “Building Knowledge on Petroleum Resources Management” Consultative process for a shared vision on the development of the petroleum sector in the Somali Peninsula Sponsored by the Minister of Petroleum and Mineral Resources, Federal Government of Somalia December 1-3, 2015 Panafric Hotel, Nairobi, Kenya Time December 1 Speaker Time December 2 Speaker Time December 3 Speaker 9.00 Opening and welcome Mohamed 9.00 Understanding the needs and Armand 9.00 Transparency: the key to Michael Jarvis remarks Mukhtar interests of stakeholders in Holle credible cooperation Introduction to a Shared Hugh Riddell the value chain between authorities Vision Lex Huurdeman 10.30 Tea break 10.30 Tea break 10.30 Tea break 11.00 Understanding the oil and Armand Holle 11.00 Institutional roles required to Armand 11.00 Petroleum Master Planning: Leonard Crook gas value chain manage the petroleum value Holle what decisions need to be chain made and when? 12.30 Lunch 12.30 Lunch 12.30 Lunch 13.30 Dealing with ownership, George 13.30 International experience with David 13.30 Oil and gas field Armand Holle management and revenue Anderson managing civil conflict around Nyheim management practices sharing of petroleum petroleum developments across political boundaries resources in federations. through unitization 15.00 Tea break 15.00 Tea break 15.00 Tea break 15.30 Comparative International George 15.30 International experience with David 15.30 Summary of key points of Lex Huurdeman experiences of managing Anderson managing civil conflict around Nyheim the workshop petroleum resources in petroleum developments federal systems 17.00 Close 17.00 Close 17.00 Close Facilitated by 3. WORKSHOP 1: KEY MESSAGES Session 1: Understanding the Oil and Gas Value approach depends on the character of the country Chain but also on the real or potential importance of petroleum for governments and the economy. • Large investments are necessary for complex/ long term projects to be managed with stable policies, regulations and institutions. Session 3: Management and Revenue Sharing • Oil and gas projects have common elements, but • Some of the older federations assign the lead also have a number of essential differences responsibility for managing the petroleum sector • The time between a discovery and first to the states. In these cases, the federal production (and revenues) varies from 4-6 years governments also have a variety of fiscal and for oil and 8-10 years for gas. regulatory levers than can affect the development and activities of the petroleum sector. • Petroleum is a finite resource. The sector activities should be extended for the sustainable • In most federations, especially in developing benefit of the national economy, to include supply countries, the federal government leads on chain and local content as well as forward linked petroleum management. This can even be true industries, where the states have constitutional ownership of the resources, as in India, Pakistan and Malaysia. • True joint management of petroleum between Session 2: Federalism federal and state governments is a rare There is a need to consider ownership, management exception. However, some federations with and revenue sharing for petroleum in a federal federal leadership of petroleum management do context individually, because they can operate quite have limited provisions for a role by the states in independently of one another. Ownership does not regulation and policy decisions. necessarily predict which government manages the • The petroleum industry is very complex and its resource or gets the primary resource revenues. proper management requires significant Federations vary tremendously in how they are professional capacity, which is expensive. structured and function and this is true for oil and gas. There is no one best way. The choice of • So as Somalis consider how to manage • It may be helpful to focus on the management petroleum, it’s important to consider whether the and revenue sharing issues first and to leave the federal or the member state level should have the ownership question to the end of negotiations. lead responsibility or whether they want some This is because the ownership issue is largely elements of joint management. Di ff erent symbolic. management models will give rise to different capacity needs and costs, as well as impact the effectiveness of making predictable and timely Session 4: Stakeholders Interests decisions. • Petroleum activities generate both benefits and • Revenue sharing is potentially easier to resolve risks for stakeholders. than management. A key question is how much a member state should get a special share of • Host Governments and IOC’s have both aligned petroleum revenues from activities in its area. and partially competing interests. Federal experiences vary a good deal from no • A balance should be struck to keep the Host extra revenues to very large extra revenues. One Country attractive for investors, whilst maximizing principle is giving revenues to the state where direct and indirect benefits to the country. they are derived; the other is giving them to states on the basis of need. In practice, there is • The risks for the Host Country are identifiable and often a balance between the two approaches. can be prevented or mitigated by anticipation and Related to this is the larger question—beyond the through good governance. Doing so, creates petroleum sector—of whether Somalis want a tangible value for the Host Country. federation that has a large measure of equality • Considering the interests of all stakeholders, not across states or whether they are prepared to see just now but also over time, contributes to significant differences. If these larger questions avoidance of petroleum related conflict. can be answered, this will give a framework to work out more detailed arrangements on revenue sharing. Session 5: Institutional Framework & Governance • One caution is to avoid putting a rigid percentage • The institutional framework is the most important value for revenue sharing into the constitution. The determinant within the control of the Host Government constitution should be appropriate for a wide • Different institutional models and examples can be variety of scenarios in terms of the value and considered to meet prevailing circumstance in Somalia. regional concentration of production. Rigid Critical success factors are: percentages in constitutions have been • Clear responsibilities; no overlap of problematic. However, it would be possible to responsibilities; proper coordination. develop a formula that could apply in very different conditions. • Allow for adequate authority and resources. Session 7:Transparency • Ensure adequate technical capacity and market • Transparency is a necessary and important tool for knowledge in the institutions. This is essential to successful management of natural resources. have symmetrical know-how with IOC’s at negotiations and key decision points. • Proactive sharing of information is critical to credible cooperation across levels of government. • Segregate policy roles from administrative and c o m p l i a n c e ro l e s f ro m c o m m e rc i a l a n d • Transparency matters across the extractives value investment roles to allow for the build-up of chain, and can support both revenue optimization and adequate know-how and to avoid conflicts of conflict mitigation. interest. • Information needs to be truly accessible, timely and accurate - coupled with capacity for appropriate understanding and use of the information across Session 6: Managing Civil Conflict stakeholders. • Accept that there will be conflicts and disputes • Transparency alone will not guarantee good results, and associated to petroleum development. Show leadership in contexts of fragility needs to be carefully managed. by using these conflicts and disputes to improve overall petroleum sector management and ensure they do not degenerate into violent confrontations. Session 8: Petroleum Master Planning • Take the necessary time to resolve issues that may A Master Plan is a strategic roadmap for government impede the establishment of a petroleum sector policy-makers that detail the policy and investment management framework that is good for the country – decisions they must make in order to achieve their vision now and in the future. for how the oil and gas industry will operate in Somalia in • Recognize that risks to petroleum related violent conflict the future. are driven by: (a) the infrastructure of violence; (b) state • The vision sets the founding principles for the fragility; (c) weak legislation and regulation; (d) industry’s role in Somalia. operational issues and (e) corporate behavior. • Consensus is developed by engaging • The reduction of risks of petroleum related violent stakeholders – national and regional governments conflict is possible. It involves the formulation of and ministries, civil society, major economic strategy, and within that strategy, a set of political entities -- through a transparent process. decisions, technical measures, and actions directed at corporate actors. • Based on sound analysis of the present situation, and identifies gaps in knowledge that require additional analysis over time to better inform decision makers. • The Master Plan is a “Living Document” that will guide Government action at present, but it must evolve time as new information is available. • The Master Plan represents the government’s commitment to follow the path laid out in the plan. Session 9: Management Across Boundaries • If the border is agreed, cross border unitization applies. • If the border is disputed, a joint development zone would apply for which different models are possible. • Whatever solution is applicable: • Technical understanding of the reservoir is “I think going forward crucial, but not a reason to hold up development it will influence the • Early involvement of all parties in a spirit of co- multi-stakeholders operation avoids deferred development and involved, specially financial loss decisions-makers, to make informed • Alignment between government and private decisions around the license holders is essential management, • Agree the determination procedure as early as ownership and possible and appoint external experts sharing of the benefits of the petroleum sector in Somalia. And ultimately will help contribute to the stability and prosperity of Somalia.” Mohamed Mohamed, Puntland delegation. “Building Knowledge on Petroleum Resources Management” Agenda Workshop 2 Consultative process for a shared vision on the development of the petroleum sector in the Somali Peninsula Sponsored by the Minister of Petroleum and Mineral Resources, Federal Government of Somalia December 15-17, 2015 Panafric Hotel, Nairobi, Kenya Time December 15 Speaker Time December 16 Speaker Time December 17 Speaker 9.00 Welcome and recap Lex Huurdeman 9.00 The specificities of taxing Charles 9.00 Funds – instruments for Kevin Carey resource extraction McPherson consolidation, stability, investment and saving 10.30 Tea break 10.30 Tea break 10.30 Tea break 11.00 Petroleum Agreements: John 11.00 Revenue collection and Charles 11.00 Creating sustainable Masuma Farooki get the best deal, while Beardsworth mobilization: institutions and McPherson impacts: how to build still attracting legal framework Local Content investments 12.30 Lunch 12.30 Lunch 12.30 Lunch 13.30 The petroleum legislative John 13.30 Petroleum revenue sharing George 13.30 Summary from the Lex Huurdeman framework in a Beardsworth in the context of fiscal Anderson workshops: what are federation; issues for the federalism and resource feasible policy choices for Constitution, the ownership models in federal the development of the Petroleum Law and the systems Somali petroleum sector? petroleum regulations 15.00 Tea break 15.00 Tea break 15.00 Tea break 15.30 Environmental and Social Fernando 15.30 Macroeconomic policy Kevin Carey 15.30 Introduction to mediation Paul Simkin dimensions of petroleum Rodriquez framework for resource rich approach and next steps: development countries participatory mediation design 17.00 Close 17.00 Close 17.00 Close Facilitated by 4. WORKSHOP 2: KEY MESSAGES Session 1: Petroleum Agreements Session 2: Federal Petroleum Legislative Framework • The most important consideration in ensuring an equitable and stable petroleum sector— • Well-structured petroleum legal and regulatory particularly in federations with potentially frameworks feature a number of key components. conflicting local and national interests—is a clear • Constitutions address fundamental concerns, and robust regime for allocating petroleum such as revenue allocation and ownership of revenues. petroleum resources, which are of critical • Establishing an appropriate fiscal regime for importance in federal systems. petroleum revenues is essential in striking the • Petroleum laws and petroleum regulations work proper balance between attracting investment together to (i) broadly sketch the rules of and getting the best deal for the host country. participation in the sector, and (ii) provide a • Production sharing contracts are the most flexible means for filling in the details, many of common form of petroleum agreement in which will need to evolve over time as the sector countries with developing petroleum sectors, as matures. they allow for progressive revenue sharing and • Model petroleum agreements set out relatively simple administration. standardized terms applicable to all contractors, • Within production sharing contracts, there are a which eases the administrative burdens on the number of sharing mechanism options, with entity(ies) responsible for contract compliance, profitability-based (ROR and R-Factor) ones which in turn helps to ensure that the country and offering the highest degree of progressivity. its citizens receive the contractual benefits from the petroleum resources to which they are • In addition to establishing an appropriate entitled. petroleum management and revenue allocation structure, it is essential to adopt transparency measures that help to ensure good governance in the petroleum sector. S e s s i o n 3 : E n v i ro n m e n t a l a n d S o c i a l pertaining to concession allocations, baseline Dimensions information, standards, government budgets a n d e v e n t u a l l y re v e n u e m a n a g e m e n t • Conduct a strategic environmental and social apportionments. assessment (SESA) to establish key parameters for sustained oil and gas sector • Use revenue from sector development to build development and inform the needed sector social capital though investments in services and institution reforms (i.e. education, health), productive sectors that translate into employment prospects, and • Establish legally binding environmental and opportunities to improve livelihoods, enable social standards (internationally accepted inclusive and equitable growth and gender good practice) that carry over into contracts, considerations. licenses, and concessions. • Establish a robust natural and social resource management policy framework, including an Session 4: Petroleum Fiscal Regimes explicit requirement to conduct project- • The fiscal regime is a key component of the specific ESIAs prior to the commencement of overall framework for investment in the activities. petroleum sector • Ensure alignment and equivalency of • Peculiar features of the sector need to be e n v i ro n m e n t a l a n d s o c i a l l e g i s l a t i v e recognized in the design of its fiscal regime .g. requirements across all Member States. the long lead times and significant scale of • Establish a robust and capable regulator investments, the volatility of prices, the charged with safeguarding natural and social variability of costs c a p i t a l , p ro m u l g a t i n g s t a n d a rd s a n d • Prerequisite to the design of the regime is regulatory enforcement. Ensure it is properly consensus among stakeholders on fiscal staffed and resourced to fulfill its mission. objectives. These might include: progressive • Leverage inclusive consultative processes to capture of rents (excess profits), timing of evaluate and revise social and environmental fiscal revenue, and international assessment processes and petroleum- competitiveness. specific laws and regulations. • Multiple fiscal objectives require multiple • Gradually incorporate local content provisions instruments, each with their own plusses and into contracts to ensure that companies and minuses: operators contribute to training and building • Profit taxes; efficient, non-distorting, workforce and supply chain capacity. but revenues are ‘back-loaded’ and • Establish a government Open Data Portal and demanding in terms of administration. actively focus on sharing information • Critical non-routine functions (e.g. fiscal price, cost and volume determinations, audits and • Royalties; regressive, distorting, but the handling of appeals) require special provides revenues early and easier to expertise. administer. • Centralized administration is recommended • Production Sharing; combines features on the grounds of improved accountability, of profit taxes (sharing of profit oil) and avoidance of duplication, coordination of royalties (he result of fixed maximum compliance strategies and avoidance of cost oil provisions) dissipation of capacity building efforts. • Design of fiscal mechanisms to progressively • Transparency should apply across the board capture rent require special attention. Best to administrative functions. o u t c o m e s a re e x p e c t e d w h e re fi s c a l instruments are linked to actual measures of project profitability (R-factor or ROR) Exercise: Participants’ views on sharing principles • State Participation can take a variety of forms Should producing states receive a special share of all of which have fiscal equivalents (rent tax, net petroleum revenues? dividend tac etc.), except for full equity All participants agreed that this should be the case. participation. Where there is a fiscal equivalence, other fiscal terms may have to be How much fiscal disparity between member states adjusted to maintain the same level of investor as a result of sharing of revenues would be interest. The full equity option requires careful acceptable? A majority of participants were in favor of minimal discussion before being adopted (cost disparity to reflect egalitarian principles. A minority felt implications, potential for delays, government that wider disparity would be acceptable in case that assuming risk, alternative demands on funds) this was the result of fair sharing criteria based on state programs addressing needs. Session 5: Petroleum Fiscal Administration Does Somalia need to create funds for stabilization or saving? • Fiscal administration is too often the weak link All participants agreed that this should be the case in converting oil wealth into national wealth. Does a net petroleum revenue sharing regime have • Failures in performance of routine functions to be flexible over time? j e o p a rd i z e re v e n u e c o l l e c t i o n , g o o d Most participants agreed that this should be the case, governance and country reputation. but for a variety of reasons (e.g. changing needs over time, price fluctuations, changing number of • Recommended responses include reductions producing states). The advantage of a more stable in the number of taxes and agencies involved regime to overcome distrust was mentioned by a and harmonization of payment procedures participant. Session 6: Petroleum Resource Revenue Sharing • The remaining net petroleum revenues and all other revenues collected by the federal • Sharing of net petroleum revenues with government could then be available for producing states is a common practice in many distribution to the federal and state governments. federations. It responds to the sense of the This would be done largely on the basis of need, population in a state that they have a special but principles and criteria could be stated in the stake in the resource, even when the resource is Constitution. The actual formula for allocation deemed to be owned in the Constitution by the would need to be adjusted periodically and people of the whole country or by the federal procedures for decisions in this regard would be government. required. • There have been negative experiences with • Over and above the revenue sharing model, the allocating revenues to producing states when federal government could provide additional these have been defined as fixed percentage resources from its own budget through fiscal share, because these are not sensitive to different transfers. These could be conditional or circumstances and have resulted in major fiscal unconditional in nature. This would be distinct disparities between states. from arrangement for sharing of net petroleum • It is important to have a clear definition of what revenues. petroleum revenues will be shared with producing states. One aspect of this would be whether some or all revenues from offshore production Session 7: Macro-Fiscal Policy Framework for was considered to be from within a state. RRC • A good practice in a Constitution is to provide for • Standard macro-fiscal policy frameworks need a National Revenue Account (NRA), held by the some adaptation to be suitable for economies Central Bank, to receive all revenues determined with current or prospective resource revenues, and collected by the federal government. This but the key principle is that revenue from an account would be outside of the federal budget. exhaustible resource should be seen as a form of There would be a formula for allocations from this financing -- an asset is being reduced. account, to be revised periodically to address • This financing allows the non-resource budget changing circumstances and needs. deficit to be larger than it otherwise would be, but • The allocations from the NRA could include a there are still limits to how much total debt is share of net petroleum revenues going to states compatible with fiscal sustainability. where they were generated. A further share could • How much should public spending is warranted be allocated to a Stabilization Fund and the from resource revenues? The standard answer is principles and rules governing deposits into this the level of spending that is equivalent to the fund and withdrawals would need to be interest earnings on total oil wealth ("permanent developed. income”). • This recommendation may not be consistent with the • Supplier development programs are considered best deep investment needs of low income countries, so practice, and should be designed from an early stage modifications to the recommendation allowing for in project development, rather than when a field goes front-loading of investment have been introduced . into production. Gathering base line data around domestic firm capacities is recommended for these • This adjustment in recommendations is reflected in the programs to be effective. evolution of thinking about resource funds away from conventional overseas financial assets held by • Joint ventures between less capable Sovereign Wealth Funds to domestic investments domestic firms and more capable managed by a Sovereign Development Fund. international supplier firms can facilitate skills development, • But Somalia should not wait for the onset of resource technology transfer and business wealth to put these policies and institutions in place. development in the country. Sound budgetary institutions are needed immediately for Somalia to achieve its goals through more effective • Local content policy can either take mobilization and spending of available resources and the form of regulations (included in financing options. legal code or concession agreements) or be used for coordinating efforts by “At this juncture of various oil firms (based on a the history, after Session 8: Funds consultative/dialogue process). being in a conflict • • Supplier development programs are for the past 25 Traditional roles of sovereign funds was to insulate the considered best practice, and should years, it’s very budget from revenue volatility and governance be designed from an early stage in important that we problems which would otherwise lead to excessive project development, rather than when reach an spending. a field goes into production. Gathering agreement on • In fact this insulation role is very difficult and not resource sharing base line data around domestic firm sufficient on its own to counter pressures to spend and how we do it, capacities is recommended for these resource revenue in the near-term. and at least this programs to be effective. • workshop has But coupled with transparency and oversight • Joint ventures between less capable given us important mechanisms and a credible domestic investment domestic firms and more capable information that is program, a fund can be a good way to balance the international supplier firms can needed at the advantages of foreign and domestic investment of facilitate skills development, moment, to make revenues. technology transfer and business such an important • In practice, a stabilization and liquidity motive remains development in the country. decisions from our very important for resource rich counties, at all income side”. Mohamed • Local content policy can either take levels. Abdilahi, South the form of regulations (included in West delegation legal code or concession agreements) or be used for coordinating efforts by Session 9: Linkages and Industrial Development various oil firms (based on a consultative/dialogue process). 5. SPEAKERS’ BIOS Alexander Huurdeman is a Senior Oil and Gas Expert at the World Bank. Lex brings senior leadership with over 30 years of global experience in the oil and gas sector. He is responsible for the World Bank oil and gas programs in East Africa, leading preparation and negotiation of financial instruments for oil and gas infrastructure and responsible for major policy initiatives and advice to Governments. Prior to that, he held technical, commercial and senior management roles in Shell International E&P in the Middle East, Europe, North Africa and Asia. Lex is a Dutch national, is married and has two children. He was educated as a Mining and Petroleum Engineer at Delft University. George R.M. Anderson is a fellow at the Institute on Democracy and Diversity at Queen’s University in Canada and a frequent consultant with the United Nations on constitutional transitions. He was a career civil servant in the Canadian government, with senior appointments in the Energy, Finance, Foreign Affairs and Finance departments before becoming Deputy Minister of Intergovernmental Affairs (1996-2002) and of Natural Resources Canada (2002-2005) . He was President of the Forum of Federations, an international NGO supported by nine countries, 2005-2011. Educated at Queen’s and Oxford and the École Nationale d’Administration in Paris. Fellow at Harvard's Center for International Affairs (1992-93) and senior fellow at the Center on Constitutional Transitions, Faculty of Law, New York University (2013-14). Author of Federalism: An Introduction (2008) and Fiscal Federalism: An Introduction (2010), which have been translated into 22 and 12 languages respectively. Editor of Oil and Gas in Federal Systems and Internal Markets and Multilevel Governance (both 2012) and co-editor of Federal Rivers (forthcoming 2013). A mentor, Trudeau Foundation, 2011. Trustee emeritus, Queen’s University. Member of advisory board, Mowat Centre, University of Toronto. Fernando Rodriguez is a leading consultant in environmental, social, health & safety and sustainable development management, with 30 years of experience working with industries, investors and governments worldwide. He has extensive stakeholder engagement experience, including regional tripartite dialogs, and he has contributed to the development of case studies and oil and gas industry best practices including IPIECA, IOGP, and ARPEL. He is a columnist in oil issues and sustainable development, a speaker and panelist in conferences and symposiums held by industry, business forums, and NGOs around the world, and his work has earned him multiple international recognitions. Fernando is the founder and Managing Director of HSE International and concurrently a Consultant to the World Bank Group. Prior to consulting, He held various executive level leadership, senior management and technical positions, including in the oil and gas industry with ConocoPhillips - the largest independent oil & gas exploration and production company in the world, in the renewable wind energy sector with Vestas, and in infrastructure development with Halff. Fernando received engineering degrees from the University of Colorado, and completed executive education at the University of Cambridge, Thunderbird University, and at Harvard – MIT. He is a member of the Society of Petroleum Engineers (SPE) and the International Association of Impact Assessment (IAIA). Fernando is based in the USA. Kevin Carey is a Lead Economist in the East Africa and Great Lakes macroeconomics and fiscal management group at the World Bank. Kevin, an Irish national, joined the World Bank staff as a senior economist in the Middle East and North Africa economic and social development department in 2007. He initially worked on the Gulf Cooperation Council countries technical cooperation program and later became lead economist specializing in oil and gas macroeconomic issues throughout the region. More recently, he had been working on Iraq and Jordan, as well as supporting the WB's thematic groups on natural resource rents and conflict. Prior to joining the Bank staff, Kevin worked on a term appointment for the IMF Africa Department during 2004-2006, with the division that produces the IMF Africa Regional Economic Outlook. During 2002-2004, he was with the World Bank Institute  team providing capacity building for poverty reduction strategies in eastern and southern Africa. Kevin has also held academic positions at the University of Miami in Coral Gables, Florida, and at American University in Washington DC. He has a Ph.D. from Princeton University and a B.A. in Economics from Trinity College, Dublin. Charles McPherson is an independent international consultant on petroleum and mineral policy, fiscal, legal, licensing, contractual and institutional issues. He served as a resource tax policy adviser at the International Monetary Fund focusing on fiscal and financial policies in petroleum and mineral rich countries. Prior to joining the IMF, he was senior adviser oil, gas and mining and manager of oil and gas at the World Bank. His work at the Bank comprised support to petroleum sector reform and revenue management in addition to sector lending activities in a wide range of developing countries and economies in transition. Specific country experience includes inter alia Angola, Argentina, Mexico, Nigeria and the Russian Federation. Before joining the Bank, Mr. McPherson spent 15 years at two international oil companies, holding a variety of senior positions in international negotiations and government agreements. In addition to his consulting work, Mr. McPherson teaches courses on resource management and governance at the Centre for Energy, Petroleum and Mineral Law and Policy, University of Dundee in Scotland. Mr. McPherson is a Canadian and British citizen and holds a PhD in economics from the University of Chicago. John J. Beardsworth, Jr. is the global head of Hunton & Williams' business practice group, which comprises its corporate team, capital finance and real estate team, energy and project finance team and its tax and ERISA team.  He is a member of the firm's Executive Committee and Partnership Admission Committee.  With 35 years of experience, he focuses his practice on energy, infrastructure transactions and extractive industries.  John has extensive experience in restructuring and privatization, utility and infrastructure project development, domestic and international contract and finance matters, and the purchase and sale of energy, infrastructure and extractive industry assets.  He has significant experience advising clients on oil and gas matters. Armand Holle graduated almost forty years ago from Utrecht University in the Netherlands, with a master’s degree in Netherlands’ and International Law. Shortly thereafter he joined Shell and during the following 27 years he worked for the company and held 8 different legal, commercial and management jobs around the world in the oil - and gas and the mining sector. He speaks five languages, which has served him well in his career. Since 1986 Armand was involved in designing the strategy for and negotiating major oil- and gas transactions for Shell. In 2004 he was Shell’s Legal Director EP/Africa when he decided to change his career in a more entrepreneurial way. He established a company and together with several former colleagues engaged in the area of consulting with particular focus on Sub-Sahara Africa. David Nyheim is the Chief Executive of Europe Conflict and Security (ECAS) Consulting Ltd. (United Kingdom). He has 20 years of experience in dialogue process design and facilitation, stabilisation strategy development, early warning and risk assessment, and work on armed violence reduction. Prior to joining ECAS, he served for six years as the Director of the Forum for Early Warning and Early Response (FEWER) and held several policy and research positions in the European Commission and universities (Belgium and United Kingdom). As a consultant, David has worked for governments, United Nations agencies, and corporations in the North Caucasus, West and East Africa, South and Southeast Asia, and the Pacific. His work on petroleum-related violent conflicts has involved conflict resolution, stabilisation operations, human rights support, and early warning system development for corporate and government clients in Nigeria, Iraq, Guinea, Russia, and Honduras. David is trained in political science (McGill), public health (Louvain and LSHTM), and economics (London School of Economics). Based in Malta, David is fluent in English, French, Norwegian, and Italian. Dr. Masuma  Farooki  is a Senior Resources Policy Consultant at SNL Metals & Mining (UK). She is a development economist, working on commodity related issues for developing and advanced countries. Her current focus is on the socio-economic impact of the mining industry, with a particular interest in the capture and distribution of resource rents, the development of linkages and the preparation of investment promotion strategies for the state. Her work involves analysis of global value chains, industrial, trade policies and mineral policies. She works with public and private sector clients, as well as international development partners.She has conducted research on a wide variety of issues within the extractive sector; such as analyzing the impact of permit delays on mining investments in the US; Upgrading supplier firms in the Southern African mining sector through linkages with European SMEs, Local Content Policy for the extractive sector in Liberia, Standardizing EITI Data requirements and access, the Impact of Foreign Investment on the extractive sector in Guyana to name a few. She has a PhD in Development Policy from the Open University (UK), an MPhil in Development Studies from the Institute of Development Studies in Sussex (UK) and an MPhil in Economics from the GC University Lahore (Pakistan). Paul Simkin has worked in the Horn of Africa for the past 15 years, with the European Commission, United Nations and Conflict Dynamics International. Paul specializes in conflict mediation and peace building and has played an active role in Kenya’s post-election violence, conflict in the great lakes region and the protracted Somali crisis. Paul has maintained a personal commitment to environmental protection and is the founding members of Nkwichi lodge. Michael Jarvis is the Global Lead, Extractives Governance within the World Bank Group’s Governance Global Practice. He guides the Extractives Governance thematic group with a focus on knowledge, learning and innovative approaches to strengthening good governance in the critical oil, gas and mining sectors. This builds on his development of Governance for Extractive Industries programming within the World Bank Institute. Michael has worked over ten years with the World Bank in a variety of roles relating to anti corruption, private sector roles in development, and multi-stakeholder governance. This included a focus on contracting issues through which he helped shepherd development of a new global initiative on Open Contracting to promote better outcomes from the estimated $9.5 trillion in public-private contracts globally. Michael previously worked on industry codes of conduct and as a consultant on corporate responsibility issues. Michael has advanced degrees from the University of Cambridge and Johns Hopkins University. He is a frequent author and blogger. Leonard Crook is Vice President at ICF International and has more than 30 years of experience in North American and international natural gas markets. His practice at ICF has focused on the economics of gas supply, pipelines, liquefied natural gas (LNG), and gas markets. He has advised distribution companies, independent power producers (IPP), and electric utilities on gas supply strategies, and he has served as lenders' gas expert on more than $4 billion “This is the beginning of in project-financed power and natural gas facilities. Prior to joining ICF, Mr. Crook served at the Federal Energy a constructive capacity Regulatory Commission (FERC) for 10 years, where he held positions in hydro licensing, Office of Economics, and building process for all Pipeline and Producer Regulation. Mr. Crook has an M.A. in History and a B.A. in Economics and History from the stakeholders in University of Memphis. Somalia.” Omar Mohamed, Advisor to the President of Jubbaland Disclaimer: The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. They are entirely those of the author(s) and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its board of executive directors for the countries they represent. WORKSHOP Building Knowledge on Petroleum Resources Management Nairobi, Kenya ● December 1-3 & 15-17, 2015 REPORT