Payments Data

UK EITI annual payment data reconciliation 

A core part of EITI requires oil, gas and mining companies to disclose voluntarily their payments to government agencies and for the reconciliation of these payments with government receipts from these companies. This ‘reconciliation process’ takes place on an annual basis and is conducted by an independent administrator (in the UK’s case, BDO LLP), overseen by the UK EITI Multi-Stakeholder Group (MSG).

The UK has now conducted this reconciliation exercise seven times, meaning that we have now placed on public record seven years’ worth of verified data on the financial flows between industry and government, covering 2014–2020. Our aim in publishing this data is to explain the contribution that the extractive sectors are making to the economic and social development of the country and to increase public understanding of the social and economic impacts of the sector and enrich public debate on the governance and stewardship of the UK's oil, gas and mineral resources.

The results of the reconciliation process on 2020 payments data, which took place in 2021, can be found below. The results from previous years can be found in our Publications & Reports page, using the ‘UK EITI Reports’ filter.

Other sources of extractives payments data

Separate to the UK EITI payment reconciliation exercise and complementing the information in this report, a number of companies have reported their 2020 payments to governments around the world, including to UK government entities, under the Reports on Payments to Governments Regulations 2014 and the Disclosure Requirements and Transparency Rules and Prospectus Rules (before 21 July 2019) and the Prospectus Regulation Rules, which implement the EU Accounting and Transparency Directives.

Since 2014, large and publicly listed extractives companies in the UK have been required to disclose payments they make to governments on a country-by-country and project-by-project basis. This information is filed with the Companies House extractive service (UK-incorporated companies) and the Financial Conduct Authority’s National Storage Mechanism (London Stock Exchange Main Market-listed companies)..

There can be differences in the amounts reported under UK EITI and under the UK Regulations. These differences can relate to interpretation of the scope of payment categories, reporting currency and timing.

The Natural Resource Governance Institute maintains a database of Payments to Governments reports submitted by companies under UK, EU/EEA and equivalent Canadian legislation. Resource Projects provides a platform to collect, display, download and search extractive project information using open data. It aims to harvest data on project-by-project payments to governments—based on mandatory disclosure legislation—and link it to associated information about the project from a variety of sources.

The databases are as follows:

In 2020, the extractives sector continued to make sizeable tax payments to the UK Government. However, principally in the context of oil and gas decommissioning activity, parts of the sector also received repayments from Government of tax paid previously where loss carry back for decommissioning costs reduced earlier years’ taxable profits.

In order to improve public understanding of these payments, this report analyses these payments against each relevant tax and licence. The data is based on a reconciliation exercise where we asked companies to disclose their payments/repayments to HM Revenue & Customs (HMRC), The Crown Estate (TCE) or Crown Estate Scotland (CES) at group level above a threshold level (£86,000). Additionally, the reconciliation included companies that paid more than £1 million to the Oil & Gas Authority (OGA), even if the company did not make any other payment/repayment above a threshold. Government agencies were also asked to disclose what they receive from oil, gas, mining and quarrying companies. These figures were then reconciled by an independent administrator. The UK EITI website contains information on the oil and gas and mining and quarrying tax regimes.

See full UK EITI Payments Report 2020 here

This is the seventh year the UK has published reconciliation data. The tables below provide detailed information on and a reconciliation of payment streams between companies operating in the UK extractive sector and the relevant government agencies in 2020.

The reconciliation process consisted of the following steps:

  • Analysis of the reconciliation scope prepared by the Multi-Stakeholder Group (MSG);
  • Collection of payment data from government agencies and extractive companies which provide the basis for the reconciliation;
  • Comparison of amounts reported by government agencies and extractive companies to determine if there were discrepancies between the two sources of information; and
  • Contact with government agencies and extractive companies to resolve the discrepancies.

A total of 39 oil and gas companies and 16 mining and quarrying companies participated in compiling the report, with continuing high industry participation. This represents almost 96% of potential in-scope payments. We consider this to be a comprehensive picture as the vast majority of companies we approached provided their data. The MSG is grateful to all those companies that participated in the process this year. This report incorporates information collected up to 21 July 2021. Any information collected after this date has not been included in the report.

Scope

This year we have included the following payment streams:

  • Oil and gas sector: combined total for Ring-Fence Corporation Tax (RFCT) and Supplementary Charge (SC); Petroleum Revenue Tax (PRT) and Advance Petroleum Revenue Tax; Petroleum Licence Fees; the OGA Levy; and payments to The Crown Estate and Crown Estate Scotland in respect of pipelines operated by companies that are engaged in UK extractive activities. The MSG agreed that companies which paid more than £1 million to the Oil and Gas Authority (OGA) should also be included in the reconciliation.
  • Mining and Quarrying sector: Corporation Tax; extractive-related payments to The Crown Estate (TCE) and Crown Estate Scotland (CES); and monetary payments to local planning authorities as part of planning obligations.

Continuing to shadow the Reports on Payments to Government Regulations 2014, the materiality threshold remained at £86,000, applied to each revenue stream at group level. The government agencies required to report for 2020 UK EITI were HMRC, the OGA, TCE and CES. 

Extractive Industries Payments to/Repayments from UK Government

The two tables below summarise the reconciled extractive industries payments to and repayments from UK government agencies in 2020. All material differences have been reconciled.

Table 1: Detailed Extractive Industries Payments to/Repayments from UK Government in 2020 [1]

This table provides an overview of the payments and repayments reported by extractive companies and government agencies in 2020, which provides a net total £266.31 million, made up of tax flows of over £711.49m offset by repayments of £445.18m. Most of these transactions cover Ring Fence Corporation Tax and Supplementary Charge payments to HMRC and licence fee payments to the OGA. A total of £11.27 million was reported by out-of-scope and non-participating companies and this is subtracted from the overall total, leaving a total of £255.04 million reported by government and almost the same total reported by UK in-scope companies. The final reconciliation shows an unreconciled difference of £4,982, which works out at 0.002% of the total, highlighting the transparency of the UK sector.

Payment stream:Petroleum Licence FeesOGA LevyPRTRFCT & SCMainstream CTPayments to TCEPayments to TCEPayments to CESPayments to CESTotal payments (£million)
Type of payee:Oil & GasOil & GasOil & GasOil & GasOther Mining & QuarryingOil & GasOther Mining & QuarryingOil & GasOther Mining & QuarryingAll
Recipient:OGAOGAHMRCHMRCHMRCTCETCECESCESAll
Total reported by government agencies55.7129.31-445.18578.2121.663.2221.711.560.10266.31
Total reported by government agencies for out-of-scope and non-participating extractive Companies (a)5.772.70-0.000.501.980.090.000.120.1011.27
Total reported by government agencies for in-scope extractive companies49.9426.61-445.17577.7119.683.1321.711.440.00255.04
Total reported by in-scope extractive companies49.9426.61-445.17577.7119.683.1321.711.440.00255.04
Net unreconciled difference (b)0.000.000.000.000.000.000.000.000.000.00

(a) Includes 1) extractive companies out of scope of the reconciliation because their payment / repayments were below the agreed materiality thresholds, 2) those with material payments that declined to participate in the reconciliation process and 3) non-material payment / repayments for companies that were in scope.

(b) All net unreconciled differences are below the materiality deviation agreed by the MSG.

 

Table 2: Extractive Industries Payments to/Repayments from UK Government in 2020

This table shows a breakdown of payments and repayments of the data in Table 1 (above) by sector (oil and gas and mining and quarrying) and government agency (OGA, HMRC, TCE and CES) for all the companies that participated in UK EITI for 2020.

Type of payee:Oil & GasOther Mining & QuarryingAllAllAllAllAll (£million)
Recipient:AllAllOGAHMRCTCECESAll (£million)
Total reported by government agencies222.8443.4785.02154.7024.931.66266.31
Total reported by government agencies for out-of-scope and nonparticipating extractive companies (a)9.182.098.472.480.090.2211.27
Total reported by government agencies for in-scope extractive companies213.6641.3876.55152.2124.841.44255.04
Total reported by in-scope extractive companies213.6641.3876.55152.2124.841.44255.04
Net unreconciled difference (b)0.000.000.000.000.000.000.00

(a) Includes 1) extractive companies out of scope of the reconciliation because their payment / repayments were below the agreed materiality thresholds, 2) those with material payments that declined to participate in the reconciliation process and 3) non-material payment / repayments for companies that were in scope.

(b) All net unreconciled differences are below the materiality deviation agreed by the MSG.

Adjustments to the EITI reconciliation scope

Each year the number of companies assessed as in-scope changes as new companies slip above or below the threshold of £86,000 or companies merge. In 2020 the reconciliation was adjusted slightly during the reconciliation exercise as more information on the extractive nature and materiality of payments emerged, and we believe that we have captured all material financial flows. The changes are detailed as follows:

Table 3: Adjustments to the EITI reconciliation scope

Sector2018 Scope+-2019 Scope
Oil & Gas377-539
Mining & Quarrying172-316
Total549-855

 

Oil & Gas sector

Seven companies were added to the reconciliation scope when it was realised that their payments/repayments made to HMRC exceeded £86,000 for the calendar year 2020.

One company that was initially sent reporting templates was subsequently excluded from the reconciliation process because as part of the reconciliation exercise it emerged that they made/received no material payments/repayments during the calendar year 2020.

Four companies declined to participate in the reconciliation process.

Mining & Quarrying sector

Two companies were added to the reconciliation scope when it was realised that their payments/repayments made to HMRC exceeding £86,000 for the calendar year 2020.

One company that was initially sent reporting templates was subsequently excluded from the reconciliation process because as part of the reconciliation exercise it emerged that they made/received no material payments/repayments during the calendar year 2020.

Two companies belonging to the same group submitted a combined reporting template. Accordingly, this reduced the number of in-scope companies.

One company declined to participate in the reconciliation process.

Data collection

The final number of companies (both oil and gas and mining and quarrying) included in the EITI reconciliation scope was therefore 55. As the total amount reported by government and extractive companies subject to the reconciliation constitutes more than 95% of the total reported by government agencies, the overall reconciliation outcome is substantial and satisfactory.

Breakdown of Reconciled Data by Company and Sector

The two tables below set out the detailed results of the reconciliation exercise with post-reconciliation differences noted between amounts reported as paid by in-scope extractive companies and amounts reported as received by government agencies.

Table 4: Oil & gas companies

This table lists, in alphabetical order, the oil and gas companies that participated in the 2020 reconciliation process and provides a breakdown of their total payments and receipts that were above the agreed materiality thresholds against each individual tax and licence regime.

£000As reported by Government AgenciesTotal
reported
by
company
RFCT
& SC
PRTPetroleum
Licence
Fees
OGA
Levy
Payments
to TCE
Payments
to CES
Total
Alpha Petroleum Resources Limited  1,151.19316.74  1,467.931,467.93
Anasuria Hibiscus UK Ltd967.08     967.08967.08
Apache
Corporation
80,650.00 1,405.18741.93  82,797.1182,797.11
BHP 110.00     110.00110.00
BP PLC -45,192.923,961.251,602.88 214.72-39,414.07-39,414.07
Centrica PLC -36,865.573,912.961,870.50372.42 -30,709.69-30,709.69
CHRYSAOR170,010.90-13,661.033,263.652,772.85338.95176.33162,901.64162,901.64
CNOOC Petroleum Europe Ltd139,000.00 2,665.37744.43  142,409.79142,409.79
CNR International UK Investments Ltd18,773.45-61,993.89165.12807.08  -42,248.25-42,248.25
Dana Petroleum Ltd1,157.10-551.98620.37633.48  1,858.971,863.61
ENI UK Ltd12,885.55 2,446.33369.21910.48 16,611.5716,611.57
EnQuest PLC210.00 1,038.911,139.27 94.082,482.262,482.26
Equinor UK Ltd  3,202.341,058.01  4,260.354,260.35
ExxonMobil
International Ltd
-24,674.35-92,388.82    -117,063.17-117,063.17
Hurricane
Energy Plc
  1,510.27130.78  1,641.061,641.06
IGas Energy
PLC
  376.73   376.73376.73
INEOS
Industries
 -410.49208.01321.08168.66215.31502.56500.44
Iranian Oil Company (U.K.) Ltd16,118.80     16,118.8016,118.80
Ithaca Energy UK49,893.32-457.191,287.83696.67 111.1651,531.8051,531.80
JX Nippon Exploration and Production (U.K.) Ltd-2,106.26-329.76    -2,436.02-2,435.82
Neptune Energy Ltd-12,669.47 2,163.76518.01  -9,987.69-9,987.49
Chevron (including legacy-Noble Energy Group)34,369.78     34,369.7834,369.78
NSMP
Operations Ltd
     213.77213.77213.77
ONE-Dyas UK Ltd 5,784.02 1,464.09   7,248.117,248.11
Perenco UK Ltd13,156.66 3,188.632,278.54742.14 19,365.9719,365.82
Premier Oil PLC-22,431.80 2,370.901,139.27  -18,921.63-18,921.63
Repsol Sinopec
Resources UK
Ltd
-6,817.33-54,808.361,482.882,497.34  -57,645.46-57,645.46
RockRose Energy Ltd  104.60218.80  323.40323.40
Royal Dutch Shell PLC-16,364.98-99,813.092,432.723,210.76598.32 -109,936.26-109,936.26
SAGE North Sea Ltd     200.91200.91200.91
Siccar Point Energy  1,976.40114.03  2,090.432,090.43
SUMMIT Exploration and Production5,840.00     5,840.005,840.00
Suncor Energy UK Ltd105,692.97     105,692.97105,692.97
TAQA Bratani Ltd4,699.37-35,110.14914.92807.08  -28,688.78-28,686.57
TotalEnergies Holdings UK Ltd36,935.28 6,623.302,623.13 214.1346,395.8446,395.84
Tullow Oil Plc-24,221.96     -24,221.96-24,221.96
HESS Ltd-1,683.65-150.23    -1,833.88-1,833.88
DNO North Sea (ROGB) Ltd-7,575.98     -7,575.98-7,575.98
Waldorf Production UK Ltd -3,437.85    -3,437.85-3,437.85
Total577,709-445,17149,93826,6123,1311,440213,658213,663

Table 5: Other mining & quarrying companies

This table reports, in alphabetical order, the mining and quarrying companies that participated in the 2019 process and provides a breakdown of their total corporation tax payments and receipts and their total payments made to TCE: there were no payments by these companies to CES.

£000As reported by Government AgenciesTotal reported by company
Mainstream Corporation TaxPayments to TCETotal
Aggregate Industries UK Ltd(a)1,657.70494.032,151.732,151.72
Albion Stone 233.82233.82233.82
Boskalis Westminster Holdings Ltd1,046.00857.281,903.281,903.28
Breedon Group PLC16,557.16253.0616,810.2216,810.22
Britannia Aggregates Ltd 548.08548.08548.08
Cemex UK Materials Ltd 5,989.855,989.855,989.85
Cleveland Potash Ltd 679.82679.82679.82
DEME Building Materials Ltd124.731,857.411,982.141,982.14
Hanson UK Group 3,233.883,233.883,233.88
Irish Salt Mining & Exploration Co. Ltd274.82 274.82274.82
Saint-Gobain Ltd(b)4,257.52 4,257.524,257.52
Severn Sands Group Ltd177.93215.02392.95392.95
Tarmac Holdings Limited-4,989.445,099.74110.30110.30
The Banks Group568.51 568.51568.51
Van Oord UK Ltd-150.00413.39263.39263.39
Volker Dredging Ltd151.661,833.001,984.651,984.65
Total19,67721,70841,38541,385

There were additional, relatively minor, payments reported by the relevant government agencies for companies that were in scope but whose payments were below the agreed materiality thresholds and for in-scope companies that did not participate in the reconciliation process. The totals of such payments are reported in the summary tables above and, for petroleum licence fees and the OGA Levy, are included in the online disclosure of project level payments and repayments, which also includes reconciled field level data on Petroleum Revenue Tax and project-level payments to TCE and CES.

Separate to the UK EITI payment reconciliation exercise and complementing the information in this report, a number of companies have reported their 2020 payments to governments around the world, including to UK government entities, under the Reports on Payments to Governments Regulations 2014 as amended 2015 and the Accounts and Reports (Amendment) (EU Exit) Regulations 2019. There can be differences in the amounts reported under UK EITI and under the EU Accounting and Transparency Directives. These differences can relate to interpretation of the scope of payment categories, reporting currency and timing. The Natural Resource Governance Institute maintains a database of Payments to Governments reports submitted by companies under UK, EU/EEA and equivalent Canadian legislation.  
[2]

Section 106 (Town and Country Planning Act 1990) Payments

Payments to local planning authorities in England and Wales are required under section 106 of the Town and Country Planning Act 1990 and equivalent legislation in Scotland and Northern Ireland. These are used to mitigate the impact of extractive activities on the local community and benefit local communities. These payments can provide external benefits, including the improvement of local road networks or community facilities.

Only one company reported material payments under section 106 or equivalent legislation. It was Aggregate Industries UK Ltd, who reported total payments for £118,138 detailed as follows:

Local Authority (Beneficiary)

Payment (£)

Type of payment

Description

Devon County Council

16,532

Cash

Contribution to highway resurfacing

Highland Council

50,000

Cash

Glensanda Community Benefit Fund

Shropshire Council

11,663

Cash

Contribution to biodiversity and highway maintenance

Somerset County Council

39,943

Cash

Torr Environmental Enhancement Fund

Total

118,138

 

 

 

Revenue Allocations

The UK government publishes full details of its income and expenditure (outturn figures, estimates and forecasts). Budget forecasting is overseen by the independent Office for Budget Responsibility (OBR). Government accounts are audited by the National Audit Office (NAO) and scrutinised by the Public Accounts Committee. Read more information on the Revenue Allocations in 2020.

Notes and References
  1. Payments for petroleum licence fees, field-level petroleum revenue tax payments and payments to TCE and CES are included in the online disclosure of project level payments and repayments at (https://www.ukeiti.org/publications-reports
  2. www.resourceprojects.org. UK-incorporated companies, where a parent company is not reporting in a non-UK jurisdiction, file payments reports online with the Companies House Extractives Service: https://extractives.companieshouse.gov.uk 
    London Stock Exchange Main Market-listed companies (including those that are both UK and non-UK incorporated) file payments reports online with the Financial Conduct Authority’s National Storage Mechanism: https://data.fca.org.uk/#/nsm/nationalstoragemechanism