Government reveals energy production figures

In a rare statement on the energy sector, the government has revealed figures on the production of petroleum and natural gas.

Myanmar produced 24.7 million barrels of petroleum and 2085.57 million cubic feet of natural gas between 2011 and 2015 from both onshore and offshore projects, according to a statement in state media earlier this week.

According to the statement, production has increased over the past five years as energy consumption rises – from 15.292 million tonnes of oil equivalent in fiscal year 2013 to 17.445 million tonnes of oil equivalent in 2014.

“The average energy consumption per person reached 0.3388 tons in [fiscal year] 2014 based on a population of 51.49 million,” said a Ministry of Energy official.

As production has increased, so have natural gas exports, said the notice, which was published in Kyaymon and Myanmar Ahlin newspapers on October 26. However, despite the claim that production is increasing, the ministry official declined to provide information on volumes before 2011 for comparison.

Myanmar exported 78 percent of its natural gas production in 2011 and 81pc in 2015, according to the statement, which did not include detailed information on total production and exports.

“We only wanted to mention percentages, as it’s difficult to arrive at the precise figures,” said the ministry official.

Around 20pc of total gas production was used domestically, mostly in the electricity sector, said the statement. Around 68pc of domestic electricity was produced from natural gas in 2013, rising to 78pc in 2014, it said.

The statement also highlighted three international bidding rounds – the first to be carried out under a quasi-civilian government.

The Ministry of Energy conducted an onshore bidding round in 2011 in which six international oil companies and six local firms were granted the right to exploration and production activities in eight onshore blocks.

In a second bidding round in 2013, 10 international and 10 local oil companies were awarded 16 blocks. Of these, production sharing contracts (PSCs) for 14 blocks have been signed, said the statement.

In the country’s first offshore bidding round in 2013, a total of 20 blocks were awarded. State owned Myanmar Oil and Gas Enterprise (MOGE) signed PSCs for 10 shallow-water blocks and another 10 deep-water blocks with 13 international and eight local companies.

The government received US$3.55 million as a “signature bonus” from the signing of PSCs in financial year 2012, $19.47 million in 2013 and $7.29 million in 2013-2014, according to the statement. The ministry estimates that it will earn another $60.61 million in 2016. Figures for 2015 were not provided. The signature bonus is paid when oil companies begin the exploration period in their awarded blocks.

Source: Myanmar Times

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