Myanmar's maiden offshore licensing round receives bids from 30 companies

Singapore (Platts)--28Nov2013/1100 pm EST/400 GMT

Myanmar has received bids from 30 companies, including international oil majors and state-owned oil and gas companies, in its maiden offshore licensing round, a document posted on the Myanmar Ministry of Energy website late Thursday showed.

Myanmar had offered 30 blocks -- 11 in shallow water and 19 in deep water -- in this licensing round.

The ministry's document did not give details on the blocks that have received bids, but it showed that several companies have bid for more than one block.

Shell, for example, has bid for three blocks in partnership with Japan's Mitsui Oil Exploration Company; Chevron has bid for two blocks; Statoil in partnership with ConocoPhillips has bid for two blocks; ExxonMobil for two blocks; BG Group and Woodside Energy have together submitted bids for four blocks via two partnerships; and Total has bid for two blocks.

Thailand's state-owned PTT Exploration and Production, which already has a significant presence in Myanmar's upstream sector, has bid for one block. Malaysia's Petronas has bid for two, India's OVL is seeking two blocks, India's OIL three blocks; and India's Reliance Industries three blocks.

The 11 shallow water blocks offered in the round comprise three blocks in the Rakhine Offshore Area, three in the Moattama Offshore Area and five in the Tanintharyi Offshore Area. Of the 19 deepwater blocks, 12 are in the Rakhine area, three in Moattama and five in Tanintharyi.

Bidders were allowed to submit a maximum of three bids each. The blocks will be awarded under a production sharing contract regime, although foreign companies could be offered full ownership of some of the deepwater blocks, Platts has reported previously.

For the shallow water blocks, companies have to team up with at least one Myanmar-owned company, but they are expected to invest without local participation in the deepwater blocks.

--Mriganka Jaipuriyar, mriganka.jaipuriyar@platts.com
--Edited by Deepa Vijiyasingam, deepa.vijiyasingam@platts.com

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