Myanmar’s domestic private companies are seeking joint operation with foreign counterparts in oil and gas exploration and production on mutually beneficial basis, local media reported Friday.
A total of 154 Myanmar companies have bid with the Ministry of Energy for the move in onshore and offshore areas of the country but restricted to offshore blocks in deep waters.
Among them are giant companies like Eden Group Co.,Ltd, Shwe Taung Development Co.,Ltd and Parami Energy Development Co.,Ltd.
Tender winners will be allowed to freely choose and operate with foreign oil and gas companies.
According to official figures, there are 53 onshore and 48 offshore blocks being operated with foreign investment.
Meanwhile, more and more foreign investors including those from the United States, Britain, India and Australia are tendering for engagement in oil and gas exploration and production in Myanmar’s offshore areas.
It is expected that tender winners will be announced in November after feasibility studies complete.
According to the state-run Myanmar Oil and Gas Enterprise, about 300 new test wells have been set for drilling in the next five years for oil and gas exploration.
Meanwhile, natural gas from Myanmar’s Shwe Field started delivery to China as of July 28 this year after gas pipeline was laid.
At present, there are mainly three offshore natural gas projects in Myanmar — Yadana, Yetagun and Shwe, of which Yadana is the largest yielding gas of 834 million cubic feet (23.6 million cubic meters) per day.
Myanmar has abundance of natural gas resources especially in the offshore areas. With three main large offshore oil and gas fields and 19 onshore ones, Myanmar has proven recoverable reserve of 18.012 trillion cubic feet (TCF) out of 89.722 TCF’s estimated reserve of offshore and onshore gas, experts said.
The country is also estimated to have 3.2 billion barrels of recoverable crude oil reserve, official statistics indicate.
Foreign oil companies, engaged in oil and gas exploration and production in Myanmar, comprise Australia, Britain, Canada, China, Indonesia, India, South Korea, Malaysia, Russia, Singapore, Thailand and Vietnam.
Foreign investment in Myanmar’s oil and gas sector had reached 14.372 billion U.S. dollars in 115 projects as of the end of July 2013, accounting for 33.46 percent and ranking the second in the country’s foreign investment sectorally after electric power.