Oil rich economies continue to be ranked poorly on Transparency International’s Corruption Perception Index (CPI). Attempt is made in this study to establish that oil production increases the probability of being ranked poorly on CPI. Using binary choice logistic regression model, this study tested the hypothesis that the higher the volume of oil produce in barrel per day, the higher the probability of scoring high in corruption perception index. It was found that oil production volume was not a major cause of high corruption perception in oil rich economies. The results suggest that high corruption perception is explained by institutions as measured by index of economic freedom including gross domestic product per capita and oil rents share in gross domestic product.