YANGON: Myanmar named energy giants Chevron, Shell and Total among the winners yesterday of a landmark auction of offshore oil and gas exploration rights, pinning hope on its natural resources to drive economic growth.
The country, left impoverished by nearly five decades of isolation under military rule, has been the subject of feverish interest by energy firms eager to get a share of its untapped energy potential since the removal of most international sanctions in 2012.
Myanmar’s energy ministry said a total of 68 companies from across the world originally expressed interest in the auction, which was launched in April 2013, with 30 firms eventually submitting proposals.
The companies named yesterday also included US giants Chevron and ConocoPhillips, Norway’s Statoil and Britain’s BG. A total of 30 offshore blocks were originally up for auction and it is unclear when the remaining 10 sites will be awarded.
The ministry said it would receive $226.1m as a “signature bonus” from the firms once exploration begins on the 10 shallow water and 10 deep water blocks.
“This amount is the largest we have received in history” the ministry said in a statement.
International bidders on the shallow water blocks are required to partner with the local companies, but those taking on the deep water areas are permitted to have full exploration rights due to the high cost and technical skills required.AFP
