Myanmar Invites Bids for 30 Oil, Gas Blocks

Myanmar is likely to open bidding for 11 shallow and 19 deep-sea oil and gas blocks in June.

This would be the second bidding round since the easing of US sanctions against the gas-rich country, Reuters reported. "Interested parties are to submit their letters of interest to the Director General at the Naypyitaw-based Ministry of Energy by June 14," Reuters quoted the ministry as saying on Thursday.

Estimates suggest that Myanmar hold 11 trillion to 23 trillion cubic feet of gas. The announcement dated April 11 said the potential bidders will be allowed to submit three proposals for any three offshore blocks (shallow water or deep water or both), Reuters said citing the announcement.

Companies that win licences will operate on a production-sharing basis. Those who win the 11 shallow blocks will have to work with at least one registered local partner, the ministry said.

Foreign companies will be able to operate alone in the deep-sea blocks, given that few local companies have any experience in the sector. In January, the ministry invited bids for exploration licences for 18 onshore blocks. Foreign companies were required to have local partners, and as a result about 137 local entities rushed to register with the ministry.