Myanmar's natural resources include oil and gas, minerals and gems. The extractive sector accounted for 6% of GDP, 20% of State revenue and 47.6% of exports in 2015-2016. It has proven oil reserves of 138 million barrels and proven gas reserves of nine trillion cubic feet. The extractive sector is the second largest source of foreign direct investment and represent close to 40% of exports, with gas and gems being the two main revenue generating commodities.
The Myanmar government's 12-point Economic Policy accentuates the strategic role of EITI in the reform process, specifically in natural resource governance. The EITI creates a platform for vibrant discussions on issues around revenue sharing, state-owned enterprises, and lack of unified mineral cadastre system. The EITI is also stimulating public debate and shedding light on lost revenues from the gems and jade sector. According to the third Myanmar EITI Report, the value of gems and jade that were sold through the emporium in 2015-2016 was estimated at US$848m, while total government revenue collected amounted to US$ 578m. However, a World Bank study commissioned by Myanmar EITI in 2016 estimated that 60-80% of gemstones produced in the country are not declared and therefore bypass the formal system.
Myanmar has a Petroleum Law, a Mines Law and a Gemstone Law, but Production Sharing Contracts (PSC) typically govern all extractive projects. Contracts are confidential, but model oil and gas PSCs are disclosed by the Ministry of Energy. PSC holders and their legal owners are disclosed in their EITI Report. The main revenue streams in both the hydrocarbon and mining sector are production spilt, state-owned company entitlement, royalties and commercial tax/corporate income tax. State-owned companies collect 85% of the revenues from the extractive sector on behalf of the government. Tax revenues are collected by the Ministry of Planning and Finance (MOPF). No revenues are collected by subnational governments.
On 30 June 2018, the Government of Myanmar created a Beneficial Ownership (BO) Task Force composed of representatives from relevant government agencies, which aims to provide leadership and direction to the country’s efforts on beneficial ownership disclosure. Following the publication of MEITI beneficial ownership roadmap, the MSG developed a work plan detailing specific activities related to the disclosure of information on company ownership.
The MSG also commisioned a BO pilot study where 17 out of the 21 volunteering companies provided information on their legal and beneficial owners. The study lists 31 natural persons who hold not less than 5% of the shares or voting rights and have control over the respective participating companies via other means. Data from the pilot study are presented in an interactive infographic.
Global Witness also documented the beneficial owners of many of the oil and gas companies operating in the country in 2014.
Although extractive industries contributed substantially to the rapid growth of the economy in recent years, we have been facing many challenges in relation to social and environmental issues. In this regard, strong institutions, clear environmental regulations and governance, law enforcement and social safeguards are undoubtedly required, along with social, economic and environment factors to achieve sustainable development. Therefore, Myanmar has been trying to be an Extractive Industries Transparency Initiative-compliant country to ensure transparency and accountability in natural resources exploitation and financial management.
Myanmar has rich deposits of natural gas, petroleum, coal, copper, gemstones, precious and semi-precious stones, tin, tungsten, and zinc. Around 90% of the world’s supply of rubies are sourced from Myanmar and the country is also the world’s largest single source of Jade. Oil and gas is found both offshore and onshore. Mining occurs throughout the country with most of the jade deposits located in Kachin and Sagaing state.
|Oil||138 million barrels||1.5 million barrels|
|Gas||9 trillion cubic feet||677,668 MMscf||second highest production in Southeast Asia|
On 29 December 2016, the Union Government formally established the Myanmar EITI Leading Committee, which is is the highest EITI governing body in the country. The Leading Committee is composed of the Minister of Planning and Finance as Chair, the Minister of Natural Resources and Environmental Conservation and the Minister of Energy and Electricity as members, and the Deputy Minister of MOPF as Secretary. The Renaissance Institute was appointed as the National Coordination Secretariat (NCS). The current MSG consists of nine members from civil society and seven members each from government and industry. Civil society is represented by the Myanmar Alliance for Transparency and Accountability (MATA), while industry is represented by members of the Myanmar Federation of Mining Associations (MFMA), Myanmar Gems and Jewellery Entrepreneurs Association (MGJEA) and oil and gas companies. The forestry sector is also represented through the Myanmar Forest Products Merchants Federation (MFPMF).
On 7 March 2017, the EITI International Board approved MEITI's request for extension of deadlines, setting 31 March 2018 as the deadline for the publication of the second and third Myanmar EITI Reports, and 1 July 2018 as the commncement date for their Validation.
This EITI Report covers Myanmar's extractive sector in 2015 and 2016. It was published in March 2018.
This EITI Report covers Myanmar's extractive sector in 2014 and 2015. It was published in March 2018.
An outline of the steps leading to beneficial ownership disclosure by 1 January 2020.
This EITI Report covers Myanmar's extractive sector in 2013 and 2014. It was published in December 2015.
This is the Myanmar EITI 2014-2015 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
Executive summaryMyanmar EITI has carried out a scoping study in order to set out the EITI reconciliation scope which will be used for the first Myanmar EITI report. This assignment is the first step and pre-condition to the reconciliation process.
Objective of the missionThe objective of the report is to clearly define the scope of the EITI reconciliation exercise, the Reporting Templates, the data collection process and the working schedule, in accordance with the EITI Requirements (Version 2013) and objectives agreed by the EITI Committee.
Abigail supports the EITI's work in Southeast Asia and the Pacific.
Prior to joining the International Secretariat, Abigail worked at the Philippine EITI National Secretariat for five years.