Onshore production sharing deals set to be inked this month

Production sharing contracts for onshore blocks will be signed this month after a half-year delay, according to Ministry of Energy officials.

Winners for 16 onshore blocks were announced in October last year, but negotiations on the production sharing contracts necessary for exploration and production to begin have been slow-going, according to an official from the Energy Planning Department.

Agreements have already received cabinet approval, with Myanmar Investment Commission approval expected next week, said the official, who requested anonymity.

“We are likely to sign contracts for the first 10 onshore blocks in June,” he said.

The process had been delayed due to the intensely detailed discussions about the contracts between Myanma Oil and Gas Enterprise (MOGE) and international firms, he said.

“There have been no major changes in terms of the conditions of the contracts,” he said.

A total of 78 international companies submitted letters of interest for the second onshore tender of 18 blocks in 2013, with 10 foreign firms eventually successful – some with multiple blocks – and 2 blocks dropped for lack of interest. Some 15 production sharing contracts and 3 improved petroleum recovery contracts were initially up for tender in the round.

The tender followed an earlier onshore block tender conducted in 2011.

Ministry of Energy official U Pe Zin Tun had said the initial target was to sign the production sharing contracts last November or December, following the announcement of the successful bids in October.

Source: Myanmar Times

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