Local conglomerate Young Investment Group (YIG) and Canadian oil firm Pacific Hunt Energy Corp have signed a production sharing contract with the Myanmar Oil and Gas Enterprise (MOGE) to jointly conduct crude oil exploration, the firms said.
The oil exploration will take place in onshore oil blocks in Indaw-Yanan and Taungoo-Pyinmana areas in central part of the country.
In July, the MOGE had initiated contracts with British Virgin Islands-based MPRL E&P Pte Ltd and Myanmar Petroleum Exploration and Production Company to carry out improved petroleum recovery projects at two inland blocks in Pyay and Myanaung.
All foreign oil companies are set to conduct environmental impact assessment (EIA) and social impact assessment (SIA) in their respective blocks and cooperate with local authorities for development of the regions.
In October 2013, 10 foreign companies out of 78 – from Britain, Brunei, Canada, India, Italy, Luxembourg, Malaysia, Pakistan, Russia and Thailand – won tender for oil and gas exploration in 16 onshore blocks in Myanmar.
According to official statistics, foreign investment in Myanmar’s oil and gas sector amounted to $14.37 billion in 115 projects as of June, accounting for 30.76 percent of the total foreign investment, making it the second-largest FDI receiving sector following electric power.