The Ministry of Electricity and Energy is looking at methods to draw in investors to its planned upcoming bidding round.

 

Minister U Win Khaing was quoted in a 23 May article in The Myanmar Times English Edition as stating “we should be more flexible when negotiating contracts with international firms”.

 

“The new contracts cannot be based on current terms and conditions, which are at least 20 years old,” he said. 

 

“We are prepared to be more flexible with our terms, ensuring they align with current oil prices and global conditions. These new measures will bring investors back to the Myanmar oil and gas sector,” he said in the article.

 

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.

 

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.

 

Oil prices in particular have recently been climbing, touching $80 a barrel this week, which may strengthen the ministry’s hands both in negotiations and a potential bidding round.

 

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.

 

In the article, U Win Khaing again highlighted the 2023 target for bringing more production online. Two of Myanmar's four offshore areas are currently in decline. While LNG imports will help bridge the gap, the ministry has also called for production from the promising A-6 block by 2023 to help meet a potential gas shortfall.