17 January, 2013

 

Legal News & Analysis – Asia Pacific – Myanmar

 

The Myanmar Ministry of Energy has today announced the tender of 18 onshore petroleum blocks.

 

Interested parties have two months from today (ie, until 17 March) to submit expressions of interest for the blocks. The detailed requirements for the expressions of interest were published in Myanmar’s state-owned national newspaper “New Light of Myanmar” today.

 

Following submission of expressions of interest, potential bidders will be pre-qualified and selected. Pre-qualified bidders will then be presented with further information on each of the blocks along with Standard Terms and Conditions in order to submit proposals.

 

Pre-qualified bidders will then be able to submit up to three proposals for three onshore blocks, together with proposed Terms and Conditions. Submissions will be on a block by block basis, with the best offered terms and conditions for each block selected. Petroleum operations for each block will be on either a production sharing basis and/or “improved petroleum recovery basis” and the contracts to be awarded will be either a Production Sharing Contract or an Improved Petroleum Recovery Contract (IPR). (An IPR is a contract designed to encourage the enhanced recovery of existing oil & gas fields and has previously been employed on a number of onshore oil & gas blocks in Myanmar.)

 

Pre-qualified bidders will need to cooperate with a minimum of one Myanmar national owned company registered at the Energy Planning Department, Ministry of Energy. A list of such companies is available from the Energy Planning Department.

 

The announcement of this second bidding round has been expected for some time: it was originally expected to occur as a combined offshore and onshore bidding round in 2012 and to include up to 23 offshore blocks. This bidding round was delayed in September 2012 as a result of transparency and accountability concerns raised by international oil & gas companies. Details of the offshore element of the bidding round have not yet emerged from the Ministry of Energy.

 

  

For further information, please contact:

 

Alastair Henderson, Partner, Herbert Smith Freehills

[email protected]

 
Richard Nelson, Partner, Herbert Smith Freehills

 

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