We already mentioned that a large part of oil reserves is located in some developing countries
We already mentioned that a large part of oil reserves is located in some developing countries. In some of these countries revenues from the exploitation of extractive resources have been used to increase the economy growth of the country and to improve the quality of life of the population. A typical example is coming from the oil producers of Persian Gulf and from Malaysia. On the contrary there are countries with a long history of civil wars, dictatorship, and corruption: a typical example comes from the West Africa countries. In these countries the IOCs have tried to avoid their involvement in political disputes but in most of the cases they were obliged to come to terms with the strongmen that have the power. This tendency is currently changing and several IOCs recognise that they can play a positive role in strengthening governance (Frynas, 2009). In particular they realise that improving governance and transparency is fundamental in order to encourage an optimum use of resources and prevent corruption. It increase the awareness of local communities and foster governments to publish more complete information on payments, investments and revenues generated by the Oil sector (Eni Report, 2016). In 2003 it was launched the Extractive Industries Transparency Initiatives (EITI) that promotes responsible and transparent use of the financial resources generated in the extractive sector. All the majors are part of this initiative and currently there are 51 EITI implementing countries around the world. The positive side of this initiative is that all the members are declaring all the revenues coming from the extraction industry but the limitation is that there is no indication on how these revenues are spent (Frynas, 2009). The main conclusion of this debate is that even if the extractive oil is a source of significant revenues for low-to middle-income countries, many communities affected by these projects, such as Nigeria or Angola, continued to live in poverty, and had in fact become worse off than previously due to the presence of oil and gas projects (Tomlinson, 2017).