Shell Myanmar Energy to spend $1.2 billion on offshore oil and gasStaff writer ▼ | February 25, 2015
Shell Myanmar Energy is poised to spend $1.2 billion on offshore oil and gas exploration and provide $61 million as a signature bonus to state-run Myanmar Oil and Gas Enterprise (MOGE), the Energy Ministry has announced.
Oil and gas in Asia Energy Ministry of Myanmar:
Shell Myanmar Energy and Tokyo-based Mitsui Oil Exploration will conduct the exploration and undertake production under terms of the contract.
It is estimated the three sites should take two years of study and another six for exploration. The social and environmental impact assessments are also included in this foreign investment joint venture.
"Offering $61 million as signature bonus is a record since the amount has never been more than $6-7 million before," said Kyaw Kyaw Hlaing, the chairperson of Myanmar Oil and Gas Services Society, a non-profit that aids in development of the Myanmar oil and gas industry.
Eight out of 18 onshore blocks were permitted to six foreign companies through joint-venture agreements with local entrepreneurs in 2011. Another 18 onshore blocks were tendered in January 2013, and 16 of them allotted to 10 foreign companies through joint venture agreements. ■