Myanmar has invited international oil and gas companies to bid for exploration rights on an extended slate of acreage.
The Ministry of Energy seeks sealed bids for production sharing contracts on five blocks onshore and 20 offshore. Three of the onshore blocks were part of an earlier bidding round (OGJ, May 7, 1990, p. 36).
WHAT'S OFFERED
The new offshore offering includes all blocks from the Bangladesh border to the southern tip of the Tenessarim Peninsula, excluding three under negotiation and two held by Premier Oil Co.
Offered offshore are Blocks A 1-7 in the Bay of Bengal off Arakan and Blocks M 1-2, 4, 7-12, and 15-18 in the Motama area of the Gulf of Martaban.
Onshore, the ministry seeks bids for:
- Block K, Kyaukse-Yamethin, in the Mandalay region from south of Mandalay to south of Yamethin on both sides of the Rangoon-Mandalay Road.
- Block L, northern Arakan coastal area, from near the Bangladesh border to Combermere Bay.
- Block M, southern Arakan coastal area, in Arakan state from the southern end of Block L to south of Cheduba Island, including some offshore acreage.
- Block O, northern Irrawaddy Delta area, southwest of Rangoon, with its western border along the coast.
- Block P, southern Irrawaddy Delta area, with its western and southern borders along the coast.
DEADLINE, TERMS
The ministry will accept bids until Feb. 28, 1992. Production sharing contracts have 3 year extendible exploration terms and 20 year development terms.
Cost recovery maximums are 40% of production onshore and 50% offshore. The contractor's share of oil and gas production is negotiable at 10-30% onshore and 1040% offshore. There's a negotiable signature bonus of $5 million and production bonus of $1-10 million. Myanmar collects 1 0% royalty and exempts income taxes the first 3 years of production.
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