The Oil for Development programme in Myanmar

A five-year programme document was finalised in 2017.

Myanmar is one of the world’s oldest oil producers with production going back to the 19th century.

Natural gas comprises 90 per cent of total production. The OfD Steering Committee agreed that the planning of an OfD programme could start in 2016, and a five-year programme document was finalised in 2017.

The OfD Steering Committee agreed that the plannin of an OfD programme could commence in 2016, and a five-year programme document was finalised in 2017.
 
An Oil for Development Memorandum of Understanding (MoU) between Norway and Myanmar (2017–2022), was signed by the Norwegian embassy in Yangon and MOPF in May 2017, after which institutional cooperation agreements have been signed between the relevant institutions in Norway and Myanmar.
 

Key achievements of programme activities

Enhanced legal and regulatory framework
 
  • The Department of Marine Administration (DMA) has finalised a national contingency plan against acute pollution with assistance from the Norwegian Coastal Administration (NCA).

  • The Ministry of Electricity and Energy (MOEE) has received comments and input to the new upstream petroleum law from the Norwegian Ministry of Petroleum and Energy.

  • The Ministry of Planning and Finance (MOPF) has received comments to the new tax administration law from the petroleum revenue consultants engaged by Norad.

  • With assistance from Norwegian Petroleum Directorate (NPD), MOEE has initiated a project to map the needs and procuring ICT infrastructure network.

  • MOEE has started work on pipeline guidelines in cooperation with the Petroleum Safety Authority Norway (PSAN).

  • The Ministry of Natural Resources and Environmental Conservation has, together with the Norwegian Environment Agency (NEA), assessed the environmental legal framework, identifying inconsistencies and gaps.

  • The Environmental Conservation Department (ECD) has established a technical platform for environmental data and geo-information with assistance from NEA.
Increased institutional capacity
 
  • MOEE and MOPF have Increased their understanding of the fiscal regime.

  • MOEE has increased its capacity to conduct resource assessments and manage field development plans.

  • The Large Taxpayers Office has conducted tax audits showing additional claims (and potential additional tax revenues for the government) in the order of USD 80 million.

  • DMA has an enhanced capacity to handle oil spills through a table-top exercise.

  • MOEE has increased understanding of how to conduct audits and inspections of pipelines through training, fieldtrips in Myanmar and a visit to Norway.

  • ECD has assessed Environmental Impact Assessment’s (EIAs) and issued environmental compliance certificates (the EIA backlog has been cleared).

  • ECD has increased capacity to conduct audits through a trial audit.
Increased transparency and accountability
 
  • The Government’s budget documents to parliament now contain more detailed information than before about the oil and gas sector, including disaggregated figures on type of revenues, revenues from various fields and revenues from upstream and transportation respectively. These changes are a direct result of Norad’s consultants sharing international best practice with MOPF.

  • Civil society (Myanmar Alliance for Transparency and Accountability (MATA) and China Pipeline Watch) have an increased understanding of the petroleum sector (including roles and responsibilities, content of contracts, the fiscal regime, revenue flows, pipeline safety, environmental concerns) through a series of training programmes provided by advisors from key Norwegian institutions and revenue consultants engaged by Norad.

  • Parliamentarians have a better understanding of environmental challenges related to petroleum activities through a seminar for members of relevant committees, organised by MONREC/ECD and NEA.

  • Global Witness supported Myanmar civil society in Extractive Industries Transparency Initiative (EITI) engagement through the leading Civil Society Organisation (CSO) coalition MATA, including technical training on beneficial ownership disclosure.
Published 02.07.2014
Last updated 28.06.2019