Feb 27, 2012

New onshore block tender coming

Myanmar will launch a second global tender for six onshore oil and gas blocks as the reforming Southeast Asian country seeks to tap more foreign investment, two sources with direct knowledge of the deals told Reuters.

The latest tender will be issued in late February or early March, according to the Myanmar-based sources. It comes hot on the heels of Myanmar’s largest oil and gas offering in August 2011 that saw 10 out of 18 onshore blocks snapped up, mostly by Asian firms.

Myanmar has been speeding up democratic reforms ahead of April 1 by-elections that are seen as key to the European Union and other Western nations unwinding more sanctions against the nation.

Under the new tender, Myanmar will offer two fields under production-sharing contracts while the rest will be awarded under marginal field development and improved petroleum recovery contracts, one of the sources said.

“The new tender will come soon after the winners of the earlier tender sign their deals in February,” said the second source, who declined to be identified because of the sensitivity of the issue.

“Myanmar is expecting interest from Asian countries. And there may be more interest from Western countries this time,” the source added.

An Energy Ministry spokesman confirmed the country would be issuing an international tender for the onshore blocks “very soon” but declined to give further details.

Source: Reuters