New study guides oil and gas exploration in Myanmar

A new sector wide impact assessment - or simply SWIA -highlights the impacts of rapidly expanding oil and gas investment on Myanmar society and in particular on human rights in the country.

The SWIA makes recommendations for the government of Myanmar, businesses and other stakeholders on how to increase positive and reduce negative impacts of the sector.

And the SWIA is needed already, as the Myanmar government has awarded 16 onshore and 20 offshore blocks for oil and gas exploration and production within a period of 12 months.

- Companies awarded blocks will have to conduct Environmental and Social Impact Assessments according to international standards and to manage those risks throughout the project cycle. These are new concepts and requirements for Myanmar, but the findings of the SWIA should assist both government and companies, Vicky Bowman, director of the Myanmar Centre for Responsible Business, said at the release of the assessment.

The assessment is released today by theMyanmar Centre for Responsible Business and has been developed in collaboration with the centre's two founding organisations,the Institute for Human Rights and Business (IHRB) and the Danish Institute for Human Rights.

- This report is not only aimed at companies. Itis also intended to support the Myanmar government and civil society organisations in their respective roles as regulator and monitors of company performance, director Allan Lerberg Jørgensen from the Human Rights and Business department at the Danish Institute for Human Rights explains.

Four key issues identified

Although many of the issues identified by the SWIA would ring familiar in many countries, the report uncovers four key challenges particularly pertinent to Myanmar.

Firstly, engagement by business with stakeholders has historically been almost completely absent, leading to mistrust and long-standing disputes in Myanmar. Hence, companies mustengage with workers, local communities and the media in order to establish effective mechanisms to resolve grievances.

Secondly,ethnic minorities see very little benefit from oil and gas extraction in their areas. The companies need to push for transparency and more localised distribution of revenue flows.

Thirdly, companies need to be aware of how they acquire land. Land is often the most significant asset forrural families, but they are are at risk of exploitation and have limited protection under the existing and even new land laws.

Fourthly,the existing gaps in Myanmar’s legislation on the protection of the environment and human rights need to be filled. The Government should impose the same requirements on all operators and companies should publicly commit to operating to the same international standards.

For each topic covered, the SWIA provides relevant background on the legal framework, the current situation, and draws out the human rights implications for the sector to provide both practical and relevant guidance on issues for consideration by companies, the Government, workers, communities and their representatives.