MOGE to invite offshore supply base bids

Myanma Oil and Gas Enterprise (MOGE) will invite local and foreign companies to submit proposals for the development of a new offshore supply base, according to an official.

“There will be no tender for the supply base project as we have already discussed it with private companies. We will ask them to submit proposals in August,” said the MOGE official.

The state-owned oil and gas enterprise invited a number of local and international firms to Nay Pyi Taw to discuss the offshore supply base project, he said.

The joint venture project has generated a high level of interest – a total of 52 local and international companies travelled to the capital between May 25 and June 12 to discuss the opportunity with MOGE.

Interested companies came from a wide range of countries including Australia, Brunei, China, Indonesia, Japan, Malaysia, the Netherlands, Saudi Arabia, Singapore, Thailand, the UK, the US and Vietnam.

Interested companies may either apply to develop the new offshore supply base as individuals or in a consortium, according to a Ministry of Energy announcement last June.

“Regarding our meetings with the companies, not every company is qualified; some do not have enough experience, financial capability or technology,” said another MOGE official.

Myanmar has only one state-owned offshore supply base facility in Yangon at present. The new offshore supply facility is urgently needed, as the country opens up its oil and gas sector after the quasi-civilian government took office in 2011.

Myanmar’s energy ministry conducted its first offshore bidding round in 2013 and a number of international and local companies were awarded 20 shallow and deepwater blocks. The production sharing contracts for these blocks have already signed.

Several licenced international oil firms will begin exploration activities toward the end of this year and into early 2016, and a new supply base for offshore activities will be crucial to help develop the sector.

Potential locations include Yangon, Dawei in Tanintharyi Region, Pathein in Ayeyarwady Region, Malawmyine in Mon State and Sittwe or Kyaukphyu in Rakhine State, according to officials.

“We have not decided how many supply bases we will commission or where they will be,” said the official.

Companies will be required to show they can provide their own land for the new supply base. This means that international firms will largely have to team up with local partners.

“We won’t provide land for the new supply base. This must be resolved by the company itself. We are also not planning to invest any capital in the early stages, but we will help with human resources and management of the project,” the official said.

Source: Myanmar Times

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