Yetagun project in the Gulf of Mottama is
a multinational investment generating hundreds of millions
of dollars. Pic: Smart Technical Services
While FDI has traditionally flowed in from neighbouring countries
like China, India and Thailand, in recent years investment funds
have also poured in from places like Malaysia, Australia and Russia.
According to a Myanmar Investment Commission (MIC) report, FDI
in the oil and gas sector reached nearly US$2.635 billion in 2006;
19.7 percent of the $13.816 billion of FDI invested during that
U Kyaw Kyaw Hlaing, managing director of Smart Technical Services
Co Ltd, said more FDI would enter Myanmar’s energy sector
because of the country’s potential oil and gas reserves
and skyrocketing demand for both commodities worldwide.
He said the development of two newly discovered offshore gas
reserves off the Rakhine coast and the Gulf of Mottama would boost
FDI in the country.
“Daewoo and PTTEP both have to build platforms and pipelines
to transport the gas from the A-1, A-3 and M-9 blocks. This kind
of infrastructure investment will certainly boost FDI for the
next two or three years at least,” he said.
“I’m sure more oil and gas reserves can be found
if we do more aggressive explorations, including drilling many
exploratory wells in both onshore and offshore blocks,”
In recent years Myanmar has awarded many onshore blocks to oil
companies from China, India, Malaysia, Russia and Australia.
Myanma Oil and Gas Enterprise figures show four deepwater, three
shallow offshore blocks and one onshore block were awarded to
international oil companies since January 2007.
The figure is significant when compared with the January to
March period in 2006, when MOGE did not grant any oil blocks to
Foreign countries investing in Myanmar’s oil and gas sector
include China, India, Malaysia, South Korea, Thailand, Singapore,
Switzerland, Russia, Australia and the United States.
With the declaration of the Union of Myanmar Foreign Investment
Law in 1988, Myanmar demarcated 47 onshore and 25 offshore blocks
in the Rakhine, Mottama and Tanintharyi areas and invited foreign
oil companies to invest in Myanmar’s petroleum sector.
Of the 25 offshore blocks, 18 are located in the Mottama and
Tanintharyi offshore areas, while the final seven are in the Rakhine
region. In 2006 the government opened up an additional18 deepwater
blocks, 10 of which are in the Rakhine area, with the other eight
in the Mottama Gulf.