HomeMMBIZ NewsMIC Gives New Onshore Investment Nod

MIC Gives New Onshore Investment Nod

Myanmar Investment Commission (MIC) has recently given approval to two local and international companies to invest in onshore oil and gas blocks in late August.

Two local companies: Precious Stone Mining Co Ltd and Parami Energy Development Co Ltd, and Singapore-registered UNOG Pte Ltd and Liberia-registered Petronas Carigali Myanmar Inc have been approved to operate on oil and gas blocks in Pathein, Mawlamyine and Htan Ta Pin townships on the production-sharing basis.

“It’s good to allow operation in areas with potential. And as they say that the resources produced from the operations will be mainly used inside the country, it will improve the situations. As the government performs its duty and the companies build up operational and capital capacity, the country will be able to apply advanced technology in the natural resource sector instead of relying on reselling the extracts,” told U Win Myo Thu, a coordinator from Ecodev working for Myanmar’s accession into Extractive Industries Transparency Initiative (EITI).

Firms from India, Canada, Netherlands, Brunei and Luxembourg have also been recently awarded oil and gas blocks in July comprising blocks in Innkaw-Yanang area and Zeephyu Taung-Nantaw area in Sagian region, Taungngu-Pyinmana are, Thekone-Shwetu area and Mayaman-Pyay area in Bago region, Myintha, Myanaung and Shwe Pyi Thar areas in Ayeyarwaddy region and Kyaukgyi-Mindone area in Magway region.

Mining extracts, oil and gas made up the most of the country’s exports accounting for average 70 percent of the total trade in previous years while $1.565 billion has been gained from exports of gas and industrial products during the first four months of the current fiscal year.

As Myanmar has been recognised as a “candidate” nation in EITI, the government will monitor the extract industry more closely and it also has to prepare a report on the industry in the next 18 months. It is also set to implement a three year program in the resource extracting industry.

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