Oil and gas industry experts have said that the new regulations for oil and gas exploration bids will benefit Myanmar financially and promote investment sharing.
The Ministry of Energy has released the new Standard Regulations (PSC/IPR) for interested bidders on oil and gas blocks in Myanmar.
Under the new regulations, the country will have 2.5% more financial benefits and 10% more investment sharing. Financial benefits have been increased from 10% to 12.5% and investment sharing 25% from 15%
It also stipulates mandatory Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) of investors.
Oil Industry expert Kyaw Kyaw Hlaing said, “The new regulations are good as only investors who can abide by the rules can invest and conduct business.”
He added that the new regulations will benefit investors too as they will have two more years of tax holiday.
Under the previous rule, investors could enjoy only 3 years tax holiday and now it has been increased to 5 years.
As per the new regulations, the contractors must sell 10% of oil and gas extracted from the blocks to the country at 75% of the market price for domestic consumption.
Kyaw Kyaw Hlaing said, “We need to have standard regulations otherwise there will be no remedy for investors if they have grievances. It will also be advantageous for the country and I am glad that environment protection is included in its.”
There are 15 offshore oil and gas blocks in Myanmar, out of which 6 blocks are in the continental shelf and the remaining 9 are in deep-sea. There are 35 unexplored onshore oil blocks in the country and 19 oil blocks under exploration and extraction.