The report is Myanmar's first commodity trading report covering the sales of the government share of oil and gas. The report was published in December 2020 and covers sales data from 2017 - 2018. According to the data received from MOGE, the revenue from the commodity trading after reconciliation amounted to MMK 1,179,195 million (Appx USD 900 million or 60% of total revenue from the extractive sector) in 2017-2018. Details of the report can also be accessed on MEITI website here
Myanmar has been temporarily suspended since 18 February 2021. Following a coup d’état on 1 February, the EITI Board concluded that it was not possible to envisage the EITI operating under the current circumstances.
Myanmar's natural resources include oil and gas, minerals and gems. According to the latest EITI report (covering FY 2017-2018) the extractive sector accounted for 4.8% of Gross Domestic Production (GDP), 5.2% of State revenue and 35% of total exports in 2017-2018.
Myanmar published its first commodity trading report which covers sales revenues from the oil and gas sectors performed during the fiscar year 2017-2018. According to the data received from MOGE, the revenue from the commodity trading after reconciliation amounted to MMK 1,179,195 million (aprox. USD 900 million or 60% of total revenue from the extractive sector) in 2017-2018.
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 has been a platform for vibrant discussions on issues around revenue sharing, state-owned enterprises, and the need for a 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 fifth Myanmar EITI Report, the value of gems and jade sold through the emporium in 2017-2018 was estimated at EUR 825 167 206. However, a 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 various laws and regulations that govern the extractives sector, including a Mining Law, a Gemstone Law and a Petroleum Act, but contracts typically govern all extractive projects. Contracts are confidential, with only the PSC signed between Total Myanmar E&P and MOGE for the Yedana project (dated 9 July 1992) being publicly available. In December 2020, Myanmar issued a government regulation requiring the disclosure of oil, gas and mining contracts in the country that are entered into or amended by 1 January 2021.
The main revenue streams in both the hydrocarbon and mining sector are royalties, production split and commercial tax/corporate income tax. Tax revenues are collected by the Ministry of Planning, Finance and Industry (MOPFI). Subnational governments do not collect revenues.
In 2018, the Government of Myanmar created a Beneficial Ownership (BO) Task Force composed of representatives from relevant government agencies, in order to provide leadership and direction to the country’s efforts on beneficial ownership disclosure.
Two years later, in February 2020, the Government of Myanmar and Myanmar EITI co-launched a new beneficial ownership register on the Directorate of Investment and Company Administration’s website.
The registry enables users to search mining, oil and gas companies for the identities of individuals owning shares of 5% or more in these companies. Out of the 163 extractive companies that were requested to disclose their beneficial owners through the online form, 121 companies, including four state-owned enterprises, submitted a form with information about their ownership structure.
Additional companies in scope of the 5th EITI report (FY 2017-18) will be included in the registry when a new data collection round commences later this year.
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.
Production and export of oil and gas (in volume) in FY 2017/18 is summarized in the table below (from the 5th EITI report):
Gems and jade production are summarized in the tables below (from the 5th EITI report):
|Commodity||Initial recoverable||Production||Future recoverable|
|Oil||715.57 million barrels of oil||621.88 million barrels of oil||93.69 million barrels of oil|
|Gas||2.04 TCF||1.66 TCF||0.38 TCF|
The latest EITI disclosures (FY 2017-2018) show that total revenue collected from the extractive companies amounted to around USD1,4 billion. 72.2% of these revenues came from oil and gas, while 27.8% came from the mining sector. Extractive revenues were mainly collected through the government’s share of oil and gas production, royalties, signature bonuses and corporate income tax.
Extractive revenues in Myanmar have to a large extent been retained by State-Owned Enterprises (SOEs) in so-called “Other Accounts”as the company’s own funds and for the purpose of its exclusive operations and capital investment. The latest EITI Report reveals that Myanmar’s largest operating SOE, Myanmar Oil and Gas Enterprise (MOGE), transferred about USD 504 million into its Other Accounts in fiscal year 2017-2018. That same fiscal year, the closing balance of this same account was USD 4.6 billion, more than six times the total revenue of just over USD 727 million collected from oil and gas companies for the same fiscal period.
However, responding to recommendations in EITI Reports and calls for more transparency around Other Accounts, the government of Myanmar has undertaken various reform measures to improve SOE transparency. In 2019, the government issued a directive to abolish the contentious Other Accounts, ordering that all revenues from SOEs are to be transferred to the State Budget from fiscal year 2019-2020 and onwards. Following this government order, Other Accounts will be closed and all revenues from SOEs will need to be recorded in the national budget, which will allow for greater public oversight.
Addressing legal barriers to contract transparency has been on Myanmar EITI’s agenda since it began implementing the EITI in 201. Myanmar issued a government regulation on 15 December requiring the disclosure of oil, gas and mining contracts in the country that are entered into or amended by 1 January 2021. The requirement applies to all contracts carried out by the Union, states, regions, government departments, state-owned enterprises and private companies. The Ministry of Natural Resources and Ministry of Energy are tasked with implementing the regulation.
EITI reports have found that potential revenue from minerals are lost due to weak governance of the extractive industries. Recommendations from the latest EITI reports included the strengthening of the institutional capacities of the IRD by establishing an Extractive Industry Revenue Unit, improving data availability and accessibility, and developing better systems for the certification, traceability and valuation of the gemstones, and reforming the governance of SOEs.
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
Myanmar published its first commodity trading report which covers sales revenues from the oil and gas sectors performed during the fiscar year 2017-2018. A second commodity trading report is being discussed.
EITI subnational units have been established in Mandalay, Magway, Rakhine and Shan.
Myanmar has been temporarily suspended since 18 February 2021.
Following a coup d’état on 1 February, the EITI Board concluded that it was not possible to envisage the EITI operating under the current circumstances. The EITI Board has consequently decided to suspend Myanmar temporarily due to political instability, in accordance with Article 8 (b) of the EITI Standard, and lack of essential freedoms. The temporary suspension will be lifted when Myanmar is able to demonstrate that the reasons for suspension have been addressed. The EITI is continually monitoring and reviewing the situation on a regular basis and considering if further action is necessary including the possibility of delisting.
Myanmar joined the EITI in 2014 with the aim of supporting good governance and transparency reforms.
Myanmar's Validation against the Standard commenced on 1 July 2018. On 16 October 2019, the EITI Board found Myanmar to have made meaningful progress in implementing the EITI Standard. The country was admitted as EITI candidate in 2014.
Myanmar's next Validation, which was scheduled to commence on 1 October 2022, is currently on hold due to suspension.
This 6th Myanmar EITI Summary Data Template covers Myanmar's extractive sector from 1st April to 30th September 2018 Fiscal Year. The report was published in December 2020. The report can be accessed on the MEITI website here
Note: The Board concluded on 14 April 2020, that Myanmar is eligible for an extension of the reporting deadline of the 6th EITI Report covering the interim fiscal period 1 April 2018 - 30 September 2018, which will be published alongside the 7th EITI Report covering the fiscal period 1 October 2018 - 30 September 2019.
This annual progress report covers the activities and tasks performed, constraints faced during MEITI implementation from July 2019 to June 2020.
The 5th EITI Report covers Myanmar's extractive sector in 2017 and 2018.
The 4th EITI Forestry Report covers Myanmar's forestry sector in 2017 and 2018.
On 16 October 2019, the Board agreed that Myanmar has made meaningful progress overall in implementing the 2016 EITI Standard (2019-58/BM-45
Timeline of Validation and related materials
1 July 2018: Validation commenced8-17 August 2018: Country visit
Initial data collection and stakeholder consultations
24 November 2018 - Report on Initial data collection and stakeholder consultation [English
The 4th EITI Report covers Myanmar's extractive sector in 2016 and 2017. It was first published in March 2019. An updated report was subsequently published in July 2019 (EITI Supplementary Report).
More information can be found on MEITI's website
This EITI Report covers Myanmar's extractive sector in 2015 and 2016. It was published in March 2018.