“The tender for 30 oil and gas blocks and 19 deepwater and 11 shallow water exploration blocks is aimed at enabling local companies to get the investment opportunities via a joint venture system,” said Pe Zin Tun, director-general of the Ministry of Energy.
International winners of the tenders will be working with at least one local partner, according to tender regulations. Making a joint-venture with local companies is not mandatory as the foreign companies have to take risks when investing in offshore shallow water blocks, he added.
Sixty-one companies passed the qualification requirements. These include 14 from Australia, seven from India, six from England and the USA, four from Singapore, three each from Canada and South Korea, two each from Japan, Malaysia and Thailand, one from Brunei, British Virgin Islands, China, France, Israel, Indonesia, Italy, Netherlands, Norway, Spain, UAE and Vietnam.
Contracts will be awarded to those companies only after a profit sharing contract between each company and the Ministry of Energy has been approved by the Union Attorney-General Office, the Auditor General’s Office, the Ministry of Finance, the Ministry of National Planning and Development and the Central Bank of Myanmar.
The bid winners will have to conduct environmental and social impact assessments, include corporate social responsibility programmes within a six month period from the date of the signing of the agreement.
The winner companies can start their operations only after receiving the approval of Myanmar Investment Commission.
The contracts could earn state-owned Myanmar Oil and Gas Enterprise a total of US$ 226 million in signing bonuses alone, US$ 91 million for shallow water exploration blocks and US$ 135 million for deep water exploration blocks.
source: Eleven Myanmar