How to navigate Myanmar’s O&G auction risks

Author: Ashley Lee | Published: 30 Apr 2013

KEY TAKEAWAYS

  • On April 11, Myanmar’s national oil company announced it was inviting bids for offshore blocks. This is the first auction including deep-sea offshore blocks;
  • Although the auction process has developed considerably since its first auction in 2011, good local partners and thorough due diligence is key for success;
  • Oil and gas is one of the country’s most developed sectors, and will spur reform in other areas;
  • The entrance of oil and gas majors will force other sectors to develop, including banking.

Myanmar has opened a highly-anticipated auction of 33 oil and gas (O&G) blocks, including deepwater blocks for the first time. Although it is the country’s most developed sector, foreign bidders are tipped to encounter significant political risk.

O&G sector was one of the sectors least affected by sanctions that nearly halted inbound investment from Europe and the US. Several O&G majors remained in...