Myanmar Onshore and Offshore PSCs

Myanmar Onshore bidding process

To participate in bidding process for onshore oil and gas blocks in Myanmar a Letter of Expression of Interest should be sent to the Director General of the Ministry of Energy and to include*: –

  1. Copy of Memorandum and Articles of Association
  2. Copy Certificate of Incorporation
  3. Copy Latest Annual Report
  4. Copy Detailed Track Record

* Documentation to be endorsed for authenticity by the respective Embassy of the Republic of the Union of Myanmar in the applicant’s county of incorporation (or nearest Embassy).Myanmar onshore and offshore pscs

Bidders who pass “pre-qualification”  i.e. those who demonstrate they have the technical competency, financial capability, experience, expertise and technical know-how to conduct petroleum exploration and development work, will be presented with a General Overview of each block

  • Proposal Standard Terms and Conditions explained to potential bidders
  • Bidders submit up to three proposals together with proposed Terms and Conditions
  • Bidders proposed Terms and Conditions are assessed
  • Bidders must cooperate with a local company (list of companies will be provided by the Energy Planning Department)

Onshore oil and gas blocks –  Key Terms of Myanmar PSCs

Initial term of the Exploration Period (3 years)

  • Year 1 – G&G study and seismic acquisition, processing and interpretation
  • Year 2 – to drill minimum one (1) well
  • Year 3 – post- well evaluation & to drill one (1) well (or) to drill two (2) wells during Year 2 & 3

Contractor will have the option to back-off

1st Extension (2 years)

  • Year 4 – prospect evaluation
  • Year 5 – to drill one (1) well (or) to drill two (2) wells during Year 2 & 3

Contractor will have the option to back-off

2nd Extension (1 year)

  • Year 6 – to drill one (1) well

Contractor will have the option to back-off

Offshore oil and gas blocks in Myanmar 

On 7 January 2013, Myanmar’s Ministry of Energy (Ministry) launched its long awaited bidding round for offshore oil and gas blocks. Bids were invited for 30 offshore blocks, including 19 deep water blocks and 11 shallow offshore blocks.

The Ministry opted not to require foreign oil companies to partner with local companies in relation to deep water blocks, however a local partner is still required to exploit shallow offshore blocks.Myanmar Onshore bidding process

Myanmar Offshore bidding process

International Oil and gas companies who wished to bid for offshore oil and gas blocks were invited to submitt a Letter of Expression of Interest to the Director General of the Ministry and to include*: –

1.       Copy of Memorandum and Articles of Association

2.       Copy Certificate of Incorporation

3.       Copy Latest Annual Report

4.       Copy Detailed Track Record

* Documentation to be endorsed for authenticity by the respective Embassy of the Republic of the Union of Myanmar in the applicant’s county of incorporation (or nearest Embassy).

Bidders who pass “pre-qualification”  i.e. those who demonstrate they have the technical competency, financial capability, experience, expertise and technical know-how to conduct petroleum exploration and development work, will be presented with a General Overview of each block

·         Proposal Standard Terms and Conditions explained to potential bidders

·         Bidders submit up to three proposals together with proposed Terms and Conditions

·         Bidders proposed Terms and Conditions are assessed

PSCs in Myanmar 

 

Charltons advises natural resources on oil and mining PSCs in Myanmar.

The Government of Myanmar has issued a Model Production Sharing Contract (Model PSC) in relation to onshore blocks. The Model PSC should be read in conjunction with the government’s Standard Terms and Conditions (Onshore). The government has indicated that the provisions of the Model PSC are non-negotiable.

Memorandum on PSCs in Myanmar

Please refer to our detailed Memorandum regarding model production sharing contract for the exploration and production of petroleum for onshore blocks issued by the Government of the Union of Myanmar (May 2013) .

Please also refer to our Table comparing certain key terms of the Model PSC against production sharing contracts PSCs in other jurisdictions

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