Myanmar Sees Increased Offshore Exploration Work in Late 2015/Early 2016
According to Myanmar's Directorate of Investment and Company Administration (DICA), the country collected nearly $20 billion in total foreign investment in the oil and gas sector by the end of first half 2015.
Under the Ministry of Energy’s bidding rules, international oil and gas companies have to form joint ventures with Myanmar firms in the development of onshore and offshore blocks and the inclusion of domestic firms amounts to an estimated 5 percent.
“Only a handful of Myanmar companies are involved in this sector. Our general services are about 5 percent. It amounts to 5 percent of the total value (of $20 billion in foreign oil and gas investment). We need to make efforts to have a greater stake in this sector. We have many experts who worked on drilling with the Myanma Oil and Gas Enterprise(MOGE). Our content is less than 10 percent. Roughly, it is about 3-4 percent. Domestic contractors know this and need to seek ways of extending their work and services," DARE's Aung said, according to Eleven.
"We need more legislation. A 25 percent ratio would be fairer. Official supervision is weak. Work that domestic companies could do is shifted to overseas companies. We face difficulties despite making efforts. The government should pass laws and directives,” he added.
According to the Ministry of Energy, Myanmar has 104 oil and gas blocks, comprising 53 onshore and 51 offshore blocks.
At present, only 16 onshore and 19 offshore blocks have been developed. The country produced about 8,000 barrels of oil per day and 55 million cubic feet per day (MMcf/d) of natural gas from onshore fields, while the offshore fields supply around 7,000 barrels of condensate daily and about 2 billion cubic feet of gas per day of natural gas, The Myanmar Times citing information from a geologist at the Ministry of Energy, reported in early May.
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