One of the world's oldest oil producers, Myanmar is sitting on an estimated 50 million barrels of oil and holds around 7.8 trillion cubic feet of proven natural gas reserves, according to BP Plc data, and is worth around $75 billion. Its potential is reflected in recent foreign investment which, as of July 2013, marks 14.372 billion U$S in 115 projects. It is unsurprising, therefore, that Myanmar is fast becoming a leader in the Asian Oil and Gas market.
Whilst in the past, Myanmar's Oil and Gas industry has suffered from insufficient foreign investment, a number of recent political reforms has fostered foreign investors' interest. Measures include government plans to reduce the income tax rate by 5% and extend the three-year tax holiday to five years, the launch of a series of licensing rounds and the issue of production-sharing contracts. With these reforms, comes a growing consensus that Myanmar is one to watch, particularly as an oil and gas power. Myanmar has even been rated by some experts amongst the world's top five oil and gas hotspots.
Melinda Tun, at Baker & McKenzie argues that:
“People see Myanmar as a frontier market [...] “If you can get a first-mover advantage you could be well set for years to come.”
According to T.K. Ananth Kumar, Oil India's Finance Director, “The potential gas reserves could be much bigger than what is known [...] “In the long-term, we need to be in Myanmar. It’s one of the last Asian countries opening up.”
Nevertheless, Myanmar's technical capacity and expertise remains under-developed. To reach its full potential, Myanmar must experience a technological revolution. This substantial demand for the latest technology and industry solutions will be addressed at the 3rd annual Oil & Gas Summit 2014, the largest Oil&Gas Exhibition in Myanmar. The Summit will be co-hosted alongside the extremely popular Myanmar Power and Electricity Summit 2014 on 27-28 January. The 2-day event will bring together some of the world's leading industry players to discover the latest investment opportunities, industry developments and strengthen industry ties.
For further information on the Myanmar Oil & Gas and the Myanmar Power & Electricity Summit contact: charlotte@oliverkinross.com or click here
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