SINGAPORE: Myanmar is seeking joint-venture partners to import, store, distribute and sell oil products in the Southeast Asian country, according to a tender document seen by Reuters.
The Myanma Petroleum Products Enterprise (MPPE) operates storage facilities and is in charge of retail and wholesale distribution of petroleum products under Myanmar’s Ministry of Energy.
It now wants foreign companies to submit a bid to form a joint venture in order to serve customers better and to improve the management of business in an environmentally friendly manner, according to the document.
The new joint-venture company will be required to expand the business and rehabilitate existing facilities. MPPE will hold 51 per cent of equity while the foreign company will hold the rest.
MPPE’s contribution will include land use rights and existing facilities which include buildings, equipment, machinery and infrastructure, according to the document.
The joint venture will be for a maximum of 30 years after which it could be extendable by two 10-year periods.
Applicants need to have a minimum of 10 years experience and are required to have a traded a volume of at least 2.7 million cubic metres of oil products per year in the last three years.
The tender closes on Oct. 20.
Last month, Myanmar sought investors to help build a new liquefied petroleum gas (LPG) terminal and supply chain business for the distribution and marketing of the cooking and heating fuel.
In 2010, MPPE transferred 216 filling stations to private companies across the country, most of them run by businessmen close to the former military government.
MPPE still runs 12 filling stations which supply state-owned vehicles.
Fuel demand has risen quickly with the size of the fleet in Myanmar. Car ownership has nearly tripled since Myanmar’s semi-civilian government embarked on wide-ranging economic reforms after taking office in 2011.
Oil shipments to Myanmar have been on the rise in recent years with companies such as Hin Leong, Trafigura and PetroChina supplying oil products, traders said.
The value of fuel imports totalled $2.3 billion in the 2013-2014 fiscal year, up from $1.92 billion in 2010-2011, according to government data.
Source: The Economic Times