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    Oil and Gas in Myanmar

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    Kunwadi Chantaraparn
    Myanmar has a long history of oil and gas production dating back to the 1850s. After nationalization in the 1960s, the state-owned Myanma Oil and Gas Enterprise (MOGE) dominated the industry until 1988 when Myanmar began relying on foreign investment and technology. Currently there are several foreign oil companies involved in exploration and production of Myanmar's onshore and offshore oil and gas reserves under production sharing contracts with MOGE. Gas production has overtaken oil to account for around 90% of Myanmar's 180,000 barrels of oil equivalent per day. A key project is the Yadana gas field which supplies Thailand with 15-20% of its gas demand through a pipeline and has strengthened economic ties between

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    Oil and Gas in Myanmar

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    Kunwadi Chantaraparn
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    Myanmar has a long history of oil and gas production dating back to the 1850s. After nationalization in the 1960s, the state-owned Myanma Oil and Gas Enterprise (MOGE) dominated the industry until 1988 when Myanmar began relying on foreign investment and technology. Currently there are several foreign oil companies involved in exploration and production of Myanmar's onshore and offshore oil and gas reserves under production sharing contracts with MOGE. Gas production has overtaken oil to account for around 90% of Myanmar's 180,000 barrels of oil equivalent per day. A key project is the Yadana gas field which supplies Thailand with 15-20% of its gas demand through a pipeline and has strengthened economic ties between

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    Myanmar has a long history of oil and gas production dating back to the 1850s. After nationalization in the 1960s, the state-owned Myanma Oil and Gas Enterprise (MOGE) dominated the industry until 1988 when Myanmar began relying on foreign investment and technology. Currently there are several foreign oil companies involved in exploration and production of Myanmar's onshore and offshore oil and gas reserves under production sharing contracts with MOGE. Gas production has overtaken oil to account for around 90% of Myanmar's 180,000 barrels of oil equivalent per day. A key project is the Yadana gas field which supplies Thailand with 15-20% of its gas demand through a pipeline and has strengthened economic ties between

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    255 views3 pages

    Oil and Gas in Myanmar

    Uploaded by

    Kunwadi Chantaraparn
    Myanmar has a long history of oil and gas production dating back to the 1850s. After nationalization in the 1960s, the state-owned Myanma Oil and Gas Enterprise (MOGE) dominated the industry until 1988 when Myanmar began relying on foreign investment and technology. Currently there are several foreign oil companies involved in exploration and production of Myanmar's onshore and offshore oil and gas reserves under production sharing contracts with MOGE. Gas production has overtaken oil to account for around 90% of Myanmar's 180,000 barrels of oil equivalent per day. A key project is the Yadana gas field which supplies Thailand with 15-20% of its gas demand through a pipeline and has strengthened economic ties between

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    Download as docx, pdf, or txt
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    Oil and Gas in Myanmar

    Myanmar is one of the world's oldest oil producers, exporting its first barrel in 1853. Rangoon Oil Company, the first foreign oil company to drill in the country, was created in 1871. Between 1886 and 1963, the country's oil industry was dominated by Burmah Oil Company (BOC), which discovered the Ychaugyaung field in 1887 and the Chauk field in 1902. Both are still in production.

    The oil and gas industry was nationalized after a socialist-leaning military regime seized power in 1962. As in many other countries, the State assumed ownership of the resources, either operating them itself or delegating this task to private operators, who were paid for their outlay and work in oil or gas under production sharing contracts (PSCs).

    The linchpin of oil and gas policy in Myanmar is the Ministry of Energy, which has oversight for three state-owned enterprises:

    Myanma Oil and Gas Enterprise (MOGE), created in 1963, is responsible for oil and gas exploration and production, as well as domestic gas transmission through a 1,200-mile onshore pipeline grid. Myanma Petrochemical Enterprise (MPE) operates three small refineries, four fertilizer plants and a number of other processing plants. Myanma Petroleum Products Enterprise (MPPE) is responsible for retail and wholesale distribution of petroleum products. Since nationalization, the country's oil policy has gone through two distinct periods: From 1962 to 1988, oil exploration and production were mainly performed by MOGE; foreign operators were kept out by a strict nationalistic policy and the lack of an appropriate legal framework.

    In 1988, Myanmar passed foreign investment legislation and began relying on outside technology and capital to revive its oil and gas industry. In 2007, nine foreign oil companies(1) are involved in 16 onshore blocks to explore new areas (EP blocks), to enhance recovery from existing fields (IOR blocks), to reactivate fields where production has been suspended (RFS blocks) and to produce (PSCs). For the offshore area, Total, Petronas Carigali Myanmar, Daewoo, PTT-EP, China National Offshore Oil Corporation, China National Petrochemical Corporation, Essar, Gail and Rimbunam (Malaysia) ONGC (India), Silver Wave Energy, Danford Equities (Australia), Sun Itera Oil & Gas (Russia) are exploring and/or developing 31 blocks. It should be noted that Myanmar authorities intensified the opening of blocks to foreign companies since the end of 2004. Myanmars oil output is small and gas is taking over from oil. Myanmar produces around 180, 000 barrels of oil equivalent per day, of which 90% is accounted for by gas.

    Gas (mmscfd) Onshore (2007) Offshore (2007)

    Oil + condensates (bpd)

    110 Yadana: 758 Yetagun: 460

    8,000 12,000 (condensates)

    (1) Myanmar Petroleum Resources Ltd, Focus Energy Ltd, Westburne, China National Offshore Oil Corporation, China National Petrochemical Corporation, Sinopec, Essar, Goldpetrol and a representative of the Kalmik republic

    A Project Benefiting Myanmar and Thailand

    Gas from Yadana covers 15 to 20% of Thailands demand. The countrys economic growth has fueled a rapid rise in electricity demand. Around 70% of power generation in Thailand is gasfired, using local gas resources supplemented by gas from Myanmars Yadana and Yetagunfields.

    Yadana gas is piped from the field to the gas grid that supplies the Ratchaburi and Wang Noi power plants in the Bangkok region (total installed capacity of 6400 MW, with Yadana gas used to generate 2500 MW). The gas takes the same onshore route in Myanmar as gas from the Yetagun field, with both delivered at the border to Thai consumer PTT under long-term contracts.

    Yadanas production therefore establishes an important, long-term economic link between the two countries and contributes to the regional integration of Myanmar, which has too long been isolated from Southeast Asias assertive growth. For instance, Myanmar only joined the Association of Southeast Asian Nations (ASEAN) in 1997. Contractually, Myanmar is entitled to take up to 20% of Yadanas production for domestic consumption. Initially, it was lifting about half its entitlement, or 40 to 50 million cubic feet per day (1.1 million to 1.4 million cubic meters per day). Since December 2006, it has been taking 100 million cubic feet per day (2.8 million cubic meters per day). The gas is piped further north to a cement plant in Myaingkalay and then on to Yangon via a pipeline built and operated by MOGE that ties into the Yadana pipeline at Kanbauk. A new MOGE-operated pipeline carrying gas from the Yadana field to Yangon was inaugurated in 2010 and will double the amount of gas for local consumption.

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