Royalties are often the main source of revenue for energy-producing countries. Managed well, these funds can bring broad economic and social development. Managed poorly, the money can stimulate corruption, social inequality and conflict.

While the responsibility for turning these funds into social benefits lies with host governments, we can and do help.

One way is by setting a good example by following our policy of zero tolerance of bribes.The other way is by strongly supporting the Extractive Industries Transparency Initiative (EITI). It requires mining and oil companies to publish their payments to host governments and encourages those governments to be open and accountable for how the funds are spent. We see the need for the EITI only growing, as new competitors aggressively pursue business in Africa and Central Asia. In 2006, we again reported payments to the Nigerian Government and stepped up our involvement in the EITI, becoming board members and continuing to support the programmes in Azerbaijan, Cameroon, Gabon and Kazakhstan.

We paid governments over $17 billion in corporate taxes in 2006, and $1.6 billion in royalties. We collected $71 billion in excise duties and sales taxes on their behalf.