Myanmar will release another 15 oil exploration blocks by the end of next year to international
investors, on top of the 40 blocks that have been awarded to the likes of Total, Shell and Chevron.
The number is only half of what is available in the resource-rich nation.
Than Min, Director of Planning Department, Myanmar Oil and Gas Enterprise, said: “Our expectations are high to discover more oil and gas. So it will contribute a lot to Myanmar people. We need to manage rev- enues from these projects. Then our devel- opment program will be oriented to people development.”
But there are concerns about regulation in the sector. Myanmar’s Energy Ministry plans to team up with a private company to offer oilfield services. But there are fears this could squeeze the smaller players.
Kyaw Kyaw Hlaing, Chairman of Myanmar Oil & Gas Services Society, said: “We wel- come it but everybody must be on a level playing field. They should compete togeth- er with the other service companies. They shouldn’t, as a regulator, take advantage and tell the oil companies that you must give it to this joint venture company. This is the concern from the local service compa- nies and service companies overseas, also.” London-based advocacy group, Global Wit- ness, added there needs to be more trans- parency. At present, some 20 firms have refused to disclose their ownership details. But for now, that is not bothering the locals. “For me, my concern is more about how you earn the money. If your money earning is right, I don’t really care who is behind this company,” said Kyaw Kyaw Hlaing, Chair- man of Myanmar Oil & Gas Services Society. The problem is that foreign investors may care. At an oil and gas conference in Yan- gon, many of the exhibitors from over 20 countries and regions such as Singapore, Australia and the UK said they do not have operations or business transactions in Myanmar.
But they are keen to enter the oil and gas market as it continues to liberalise. And that is no surprise, given how this sector has attracted the second largest foreign in- vestments in Myanmar, amounting to over US$15 billion as of August this year.
That contributes to about 30 percent of Myanmar’s total foreign investments. The plan now is to pump the money back into the economy. Myanmar says it will first fo- cus its policy on servicing the domestic mar- ket, rather than exports.
