PROSPECTS for companies servicing the oil and gas industry appear bright in coming years because of the increased amount of foreign direct investment (FDI) flowing into the sector, according to industry sources.
FDI in the Myanmar’s oil and gas sector rose last year by more than 250 percent last year to about US$474.3 million – almost 90pc of all foreign investment in the country in 2007 – according to documents released recently by the Ministry of National Planning and Economic Development. U Kyaw Kyaw Hlaing, the managing director of Smart Technical Services Co Ltd, said service works performed by his company have increased by about 60pc in the past year.
“The main reason for our company performing more work is the increased amount of FDI in the oil and gas sector,” he said.
Smart has been providing services which include consultancy, agency, logistics, human resource development, management, catering and engineering.
U Kyi Moe Chit, deputy general manager of Myint & Associates Co Ltd, also said that his company’s services had been more in demand in the past 12 months, particularly transportation, catering, and human resources supply.
“As the oil and gas exploration sector continues to develop, skilled technicians – such as engineers and logisticians – are in high demand,” he said, adding that the company conducts training programs and sends its employees to local and overseas courses in order to promote their skills.
U Zaw Min, the general manager of Oil & Gas Services Co Ltd, also said that services of the company have increased 60pc when compared with last year, especially in the human resources sector.
He said that while there was a need for skilled workers, unskilled labourers are also in high demand to conduct the pipeline maintenance work of the oil and gas operators.
The future of service companies looks good in coming years as exploration companies look to expand their works and recently-signed agreements come into effect.
But industry sources say there is still a low probability of service companies gaining market share in some sectors – such as drilling and surveying – due to lack of technology and investment.
They said that more companies involved in agency services, human resources, transportation, logistics and catering would be needed to service the industry and added it was important domestic companies worked closely with foreign companies to improved their technology and experience.
“If domestic companies can provide services such as drilling and surveying the country will get more revenue and it could help to create more job opportunities,” one industry source said.
Mr Paul Van Empel, offshore director at Uniteam Marine company, which began offering training, human resources development and management solution services to the oil and gas sector earlier this year, shared the same view. He said that domestic service companies should try to work with larger more-experienced companies so that they can receive experience and technology.
He added that his company decided to begin offering offshore services because they believe that Myanmar’s oil and gas sector has huge opportunities.
He said oil and gas production here still had a great deal of potential growth and there were many projects now being developed that are at different stages of completion.
“Though Myanmar’s oil and gas sector’s still young at the moment, it’s a very promising market,” he said, adding that the domestic service companies should try to meet international standards in giving their services. He said that he expected human resources supply services to boom in coming years as it is one of the key factors in oil and gas industry.
