Parami Energy Development is a branch of the Parami Group of Companies, working in the oil and gas industry in Myanmar. Parami CEO U Ken Tun here discusses Myanmar’s energy sector, including his view of investment, local requirements, production and exports
In the last bidding round in 2012, the government awarded seven international exploration companies a total of nine onshore blocks. Now we have a historic bidding round for around 48 blocks currently ongoing. The government requires investors to partner with local companies when
bidding for onshore and shallow water blocks, and forbids local companies operating in deep
water blocks. It seems to me that the government does not want local companies to take substantial risk in deep water, where it costs up to US$100 million to drill a well.
On the other hand, this policy will deter Myanmar companies from having access to the knowledge and knowhow for deep water operations forever. The Myanmar Citizens Investment laws encourage Myanmar companies to work together with international investors in kind or in cash. Resources are depletable. more…