Energy giants call for transparency

Last December, Myanmar formed a team of 37 senior officials called the “Leading Authority for Extractive Industries Transparency Initiatives” to apply to join the EITI. They are tasked with bringing transparency and a sound investment environment to the industry.

“EITI standards require the governments to be transparent with the contracts they make with companies. The governments have to declare how much they gain from the business and how they use the income. The accounts should be available for appraisal by international accountants any time. Arrangements must be done to allow every citizen to know about the business,” Kyaw Kyaw Hlaing said.

EITI was introduced by former British prime minister Tony Blair as an effort to make rich countries share the benefits of natural resources with poor local people.

Oil and gas production in Myanmar is still below the levels of neighbouring countries. The country extracts 7,000 barrels onshore and 9,700 barrels offshore every day. However, daily consumption of petroleum oil ranges between 60,000 and 70,000 barrels.

Myanmar produces 180 million cubic feet of natural gas daily, of which 60 million cubic feet is from onshore sites. About 100 million cubic feet will need to be used up to fully meet the daily energy requirements.

Meanwhile, Myanmar is exporting 640 million cubic feet of natural gas from the Yadana project to Thailand under 30-year sales contract which came into effect in 1998. 

The Yadana project has also provided 180 million cubic feet of gas for daily local consumption.

Myanmar has also been selling gas from the Yetagun project to Thailand since 2000. The project produces 430 million cubic feet of natural gas every day.

The country located another gas field near Kyaukphyu in Rakhine State in 2003. 10 years have now passed, but the Shwe Gas Project is still preparing to export gas to China.