11 April 2013 – The Ministry of Energy of Myanmar published an Invitation for Bids for petroleum operations to be conducted in 30 offshore blocks, consisting of 11 shallow and 19 deep water blocks, on a production sharing basis.
Interested parties have approximately 2 months from 11 April 2013 (i.e., until 14 June) to submit a sealed bid by means of a Letter of Expression of Interest, in accordance with the requirements of the Invitation for Bids.
The pre-qualified and selected potential bidders will then be allowed to submit up to 3 proposals for any 3 offshore blocks (shallow water and/or deep water and/or both). The submissions will be on a block by block basis with the best offered terms and conditions for each block selected.
Petroleum operations for each block will have to be conducted through a Production Sharing Contract (PSC) with the Myanmar Oil and Gas Enterprise (MOGE).
Only potential bidders for Shallow Water Blocks will need to cooperate with a minimum of 1 Myanmar national owned company registered at Energy Planning Department, Ministry of Energy, of their own choosing. The potential bidders for the Deep Water Blocks will be able to conduct Foreign Direct Investment (FDI) without the participation of any Myanmar national owned company.
Considering that foreign investors may take full control of the deep water exploration, the tender is expected to draw considerable competition among large international oil and gas companies.
For further details of this development and the bidding requirements, please feel free to get in touch with our advisers:
James Finch
Partner, Managing Director DFDL Myanmar
james.finch@dfdl.com
William Greenlee
Partner, Deputy Managing Director DFDL Myanmar
Head of China Desk
william.greenlee@dfdl.com
DFDL Myanmar
myanmar@dfdl.com
