Myanma Oil and Gas Enterprise has invited Myanmar companies to register for the upcoming onshore and offshore bidding round.
The department is planning to issue tenders for exploration, drilling and production of the vacant onshore and offshore blocks. A few different types of contracts are to be awarded, including production sharing contracts, production development contracts, and joint ventures contracts, the Ministry of Electricity and Energy said in an update.
Government officials have claimed the tenders could be launched as soon as this year, though may be delayed.
Local firms chosen as partners are to benefit from oil and gas production, drilling and production technlology, international experience, and investment profit by working in joint ventures with foreign firms.
Myanmar registered companies which are interested in joint ventures with foreign firms can be registered at the Ministry of Electricity and Energy.
Related documents need to be submitted by person at the following address:
Director General, Oil and Gas Planning Department
Office (6), Ministry of Electricity and Energy, Naypyitaw
Contact: +067 411046, 411325
In the previous bidding rounds, international companies were required to choose from a list of approved local partners when submitting bids for onshore and shallow water blocks. The only exception was for deep water, for which local partners were not required.
Generally, the local partners held a token stake of 5% of less in offshore blocks, though often the stakes were considerably larger in onshore blocks, in some cases serving as operators.
Myanmar has 24 onshore and 24 offshore blocks which are not currently operated. The ministry has been considering a bidding round later this year for some of these blocks. Last month, officials said they were reviewing which blocks would be acceptable.
The industry has recently sought to push for changes to PSC terms.
Current and former acerage holders have complained about the unfavourable fiscal terms in PSC contracts, which they claim have tipped the balance and made them uncompetitive.
The previous 2013 bidding rounds were widely considered successful in attracting reputable companies to take up onshore and offshore blocks, though also occurred during a period of high energy prices. Many companies later relinquished their blocks or delayed investment decisions, particularly in late 2017.
