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Energy giants seek transparent governance in Myanmar
Publication Date : 17-05-2013
International oil and gas companies have called for transparent in the governance of Myanmar’s energy sector as they desire to make investments in the resource-rich country, a local businessman who has insight of the industry said.
“Globally, there are superpower energy companies. Those like British Petroleum from UK and Total from France want to invest in offshore coast of Myanmar. However, they called for transparency in the sector before making investments. They want Myanmar to be a member of EITI (Extractive Industries Transparency Initiatives),” Kyaw Kyaw Hlaing, Managing Director of Smart Group of Company, said.
Last December, Myanmar formed a team of 37 senior officials which was named “Leading Authority for Extractive Industries Transparency Initiatives” to apply candidature of EITI. They are tasked to bring transparency and sound investment environment in the industry.
“EITI standards require the governments to be transparent with the contracts they make with companies. The governments have to declare the accounts on how much they gain from the business and where they use the income. The accounts should be available for the appraisal of international accountants any time. Arrangements must be done to allow every citizen know about the business,” Kyaw Kyaw Hlaing said.
EITI was firstly introduced by former British Prime Minister Tony Blair as an effort to make rich countries to share benefits from natural resources with poor local people.
Oil and gas production in Myanmar is still below the production level 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, among 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 Yadana project to Thailand under the 30 year sales contract which came into effect since 1998. Yadana project has also provided 180 million cubic feet of gas for daily local consumption.
Myanmar has also been selling gas from Yetagun project to Thailand since 2000. The project produces 430 million cubic feet of natural gas every day.
The country sighted another gas field near Kyaukphyu in Rakhine State in 2003. Ten years have now passed, but Shwe Gas Project is still preparing to export gas to China.