We began working in the country after winning the international competitive bidding opened by the Burmese government and signing two production sharing contracts (PSCs) for exploring the onshore blocks RSF-5 and PSC-K. The joint venture is made up of us, in the guise of our operators Eni Myanmar B.V., with 90%, and Myanmar Production and Exploration Company Ltd (with 10%). The first block has an extension of 1,292 square kilometres and is located in the prolific Salin Basin, about 500 kilometres north of Yangon, where an exploratory well was drilled in the first half of 2020, the results of which are currently being studied. The exploration period is split into three phases, the first of which will end in 2021. The second block has an area of 6,558 square kilometres and is located in the unexplored Pegu Yoma-Sittaung basin, in the central area of the country. The exploration period expired in January 2021 and the block was released.
Another two PSCs were added in 2015 (also after international competitive bidding), in the offshore blocks MD-02 and MD-04. The joint venture, following the exit of Petrovietnam in 2018 and the subsequent entry of Total, was made up of Eni, operator with 50% through Eni Myanmar B.V., and Total E&P Myanmar (with 50%). Block MD-02 was released in 2020 on expiry of the study period. Total submitted notice of withdrawal from the MD-4 Block on November 2020; MOGE approval for the transfer of Total’s participation interest to Eni is pending.
In 2015, Eni Myanmar commissioned the Danish Institute for Human Rights (DIHR), an independent body funded by the Danish state, to conduct a Human Rights Assessment (HRA) in relation to the exploration activity in the RSF 5 Block. The results of the analysis, which included a field study phase with interviews and a focus group with members of the local community and other relevant stakeholders, were collected in the final evaluation report. This includes recommendations for mitigating critical issues and managing operational activities in accordance with the human rights of the populations involved.
In June 2020 we published an update of Eni for Human Rights, the company’s report that provides information on its commitment to the respect for human rights, showing a strengthening of its internal procedures on this fundamental matter. The report builds on the work undertaken by Eni over the past 6 years in the countries in which we operate.
Claudio Descalzi, CEO of ENI, highlights the role of senior business leaders in promoting respect for human rights in concrete ways and by leading by example.
Eni has followed with growing concern the developments in Myanmar since the declaration of a state of emergency on 1st February. Eni joined other relevant business players in signing the Statement by Concerned Businesses Operating in Myanmar, issued by the Myanmar Centre for Responsible Business (MCRB).
In the declaration, Eni reiterated its commitment to operate in Myanmar transparently and complying with the UN Guiding Principles on Business and Human Rights and ILO conventions. This includes due diligence and complying with applicable sanctions and anti-bribery regulations.
Eni considers UN’s Guiding Principles on Business and Human Rights, as well as other international conventions, as a crucial point of reference for its activities, regulatory system and governance, which are designed to protect the dignity of every human being and the wellbeing of the people.
Eni has been working in Myanmar since 2014, after the Country reopened its market to foreign investors. We currently hold 2 Production Sharing Contracts [PSC] regarding one onshore block (RSF-5) and one offshore block (MD-04). Both blocks are at the exploration stage, thus not providing any revenue to Myanmar’s authorities. Since its entrance in the country, Eni owns a 90% stake in the onshore RSF-5 block, while Myanmar Production and Exploration Company Ltd holds the remaining 10%. Eni also holds 50% of the exploration block MD-04, with the remaining 50% held by Total Exploration and Production Myanmar[1].
As mentioned, we do not currently have any ongoing operation, nor we generate any revenue in the Country, since we do not own any producing asset in Myanmar. The only financial transfer by Eni to Myanmar’s authorities - below 20 thousand US dollars per month in 2021 - are of a fiscal nature and directed to the tax authorities (local employees’ payroll income tax and social security expenses, commercial and withholding tax). Such payments are fundamental to preserve jobs in a situation that has been extremely difficult also for our local workforce.
Moreover, Eni is also committed to ensure the closure process of its wells in Block RSF-5 that was drilled in the first half of 2020, this being not only a contractual obligation but also as a key environmental and sustainability duty.
Eni does not have direct commercial deals with any Tatmadaw-connected companies. We believe our business presence, practices, and our commitment to international human rights standards contribute in a significant way to foster openness and economic development in Myanmar.
Eni hopes to see a quick settlement of the current situation based on dialogue and reconciliation in the interests of the Myanmar population.
[1] Total submitted notice of withdrawal from the MD-4 Contract Area on November 2020, pending MOGE approval for the transfer and assignment of Total’s participation interest to Eni.
We incorporate social and environmental sustainability into our business activity to create shared long-term value. In Myanmar, for example, we have set up several projects aimed at improving the health of communities, helping to guarantee them access to water and protecting the natural environment.
Food that heals
In 2017, the Eni Foundation launched a nutrition project involving the cities of Myothit, Magway and Minhla, in the Magway region. The initiative aims to supporting the Magway regional authorities following the national plan to fight malnutrition, for integrated improvement on: agriculture extension services and irrigation water safe water supply and sanitation services primary health care services.
By 2030, end hunger and ensure access by all people
Ensure healthy lives and promote well-being for all at all ages
Ensure access to water and sanitation for all
Protecting biodiversity
We are committed to protecting the environment by following the most highly respected international guidelines in the field and have adopted a policy whereby we manage our interaction with the land as best we can. We implement various measures to avoid or at least minimise the impact of our operations in conjunction with various NGOs and institutions. We have dedicated chapter 6 of our longform entitled "Examples of application at operational sites" to the application of how we operate also in Nigeria and Congo.
Together with the Myanmar authorities and the state-owned Myanmar Oil & Gas Enterprise (MOGE) we have initiated specialist training programmes with the aim of sharing our technological expertise. We have sponsored three Masters in "Integrated Petroleum Geosciences" at the University of Perugia, four Masters in "Energy and Environmental Management and Economics (MEDEA)" and two Masters in Health, Safety and Environment & Quality System (HSE-Q) at the Eni Corporate University (ECU) in Milan.
FOCUS
Exploring South-East Asia
ASEAN was founded in 1967 to promote cooperation and mutual support between its member states.
The heads of state of the Indonesia, Singapore, Thailand, Brunei, Vietnam, Burma, Laos and Cambodia are members.
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