The number of joint ventures between local and international energy companies now exceeds 140 say officials from the Ministry of Energy.
According to Myanmar’s most recent foreign investment law, foreign companies are generally required to make joint ventures with local companies in order to invest in the oil and gas sector.
On June 12, a total of 145 joint ventures have been registered with the Ministry of Energy. These include leading local companies such as Shwe Taung Company, Eden Group, International Group of Entrepreneurs Company, Kanbawza and A 1 Company.
The oil and gas sector is one of the major sources of foreign income for Myanmar. Last January, eighteen onshore blocks were put out to tender and offshore blocks will follow soon, the Minister for Energy said at the World Economic Forum a few weeks ago.
Early last year, 37 foreign firms from 18 countries bid tenders for 18 onshore blocks of oil and gas in Myanmar. Among them, 10 were picked to join hands with local companies.
Two major offshore oil and gas projects, operating with foreign investment in Myanmar, are Yadana and Yetagun Projects. Zawtika and Shwe Gas Projects will also become fully operational soon. Oil and gas from these major projects are exported mainly to Thailand and China.
Ministry of Energy reported they will focus on exploration of more onshore and offshore oil and gas fields to boost the industry.