World Bank supports the Seychelles extractive industries transparency initiative |13 October 2015

With oil resources yet to be discovered in Seychelles, oil exploration is still at a prospection stage. However, with the potential of oil reserves being found in the Seychelles’ waters, the sector can in the near future become an important part of the Blue economy concept which the country is currently developing.

In its quest for oil, it is also important for prospection and exploration to reply to international standards and requirements. This is why Seychelles has sought the support of the Extractive Industries Transparency Initiative (EITI), an international organisation which assesses the levels of transparency and accountability regarding countries’ oil, gas and mineral resources and maintains an exploitation standard. This standard is developed and overseen by a multi-stakeholder board, consisting of representatives from governments, extractive companies, civil society organisations, institutional investors and international organisations. Based in the Norwegian capital of Oslo and currently implemented in 48 countries, EITI consists of a set of requirements that governments and companies have to adhere to in order to become recognised as 'EITI compliant'.

Not only has Seychelles since 2014 adhered to the set standards, but it has only been innovative in its adherence. As a champion of sustainable development, the country wishes to conciliate oil exploration with environment protection. It is to date the only country to have included the two concepts as part of the norms it has set under EITI.

This is one reason why the country has received the support of the World Bank in its affiliation to EITI. Senior energy economist from the organisation Dr Ilhem Salamon has described Seychelles as “a pioneer, as the only country which has included environment protection as part of EITI”.

Dr Salamon is currently in Seychelles as head of a World Bank mission helping in an assessment of EITI implementation and drafting of the first report which the country is due to present next year.

 She has ensured that the World Bank will work together with Seychelles to establish what EITI should include, in view of continuing to meet its requirements and presenting a credible report.

“It is important for Seychelles to be transparent in how the structure is organised. It is also important for the people to know what EITI is all about and to be able not only to monitor the yield from petroleum, but also in terms of environment protection. You can count on our assistance,” she said.

Gaël Grégoire, World Bank policy officer specialising in environmental safeguards, has on his side stressed on the importance of Seychelles having recognised the risks oil exploration carry.

“The risks exist but can be managed,” he said, adding that “oil exploration should not harm other sectors of the economy such as tourism and fisheries”.

During the mission, the World Bank team is holding a series of meetings with representatives of ministries and agencies concerned with extractive industries. One of those meetings was held yesterday afternoon at Liberty House with the Seychelles petroleum multi-stakeholder group. The group is headed by the principal secretary for finance Patrick Payet and includes various partners in the potential oil industry, from the public sector as well as the civil society.

During its mission, the delegation from the World Bank will also be meeting senior officials from the Ministry of Finance, Trade and the Blue Economy; Ministry of Environment, Energy and Climate Change; Petro Seychelles – the company currently mandated to manage oil prospection in Seychelles; Seychelles National Youth Council (SNYC), University of Seychelles (UniSey), relevant non-governmental organisations (NGOs) as well as the media.

Members of the delegation will also be conducting training for local technicians on environmental risk associated with off-shore drilling and petroleum and gas exploitation.

There are three foreign companies currently involved in oil prospection in Seychelles. Petro Seychelles’ chief executive Eddy Belle has said the country remains optimistic of oil discovery in its territorial waters.