On 11 April the Ministry of Energy (“MOE”) of the Government of the Republic of the Union of Myanmar (“Government”) issued an Invitation for bids to conduct petroleum operations in the Myanmar offshore areas (2013) (“Offshore Bidding Invitation”) in relation to both shallow and deep water blocks. The issuance of the Offshore Bidding Invitation follows on from the recently closed onshore bidding process (“Onshore Bidding Invitation”) following which 59 companies were shortlisted for a second round evaluation and data disclosure. The closing date for submissions is 14 June 2013. Of the 11 shallow water blocks, 3 are located in the Rakhine offshore area, 2 in the Moattama offshore area and 5 in the Tanintharyi offshore area. Of the 19 shallow water blocks, 12 are located in the Rakhine offshore area, 3 in the Moattama offshore area and 4 in the Tanintharyi offshore area.
Interested parties are cordially invited to submit a Letter of Expression of Interest (“Letter”) together with their Company’s Articles of Association Memorandum of Association, Certificate of Incorporation, latest Annual Report and latest Financial Statement (or) Financial Report and Detailed Track Record, which are to be endorsed for authenticity by the respective Embassy of the Government of Myanmar at the place of Company’s registration (or) establishment or alternatively at the nearest Embassy of Myanmar. Incomplete applications will not be considered. Applicants should have technical competency, financial capability, experience, expertise and the technical know-how to conduct petroleum exploration and development works offshore and must have a good track record with respect to offshore petroleum operations.
Potential bidders who are deemed qualified will be presented with a general overview of each block consisting of representative data and information, free of charge, by the geological/geophysical team from the Myanma Oil and Gas Enterprise. The potential bidders will also be explained and provided with Standard Terms and Conditions for both the shallow water and deep water blocks by the Energy Planning Department (“EPD”), in order to submit proposal(s).
Potential bidders will be allowed to submit up to 3 proposals for any 3 offshore blocks (shallow water and/or deep water and/or both) together with proposed Terms and Conditions. The proposal submitted shall be on a block by block basis. The Offshore Bidding Invitation states that due to time limitations and in anticipation of high number of bidders there will be no negotiation with respect to proposed terms and conditions. Potential bidders have a single chance to submit their proposed terms and conditions and the submitted proposed term and conditions will be final.
The potential bidders must cooperate with a minimum of 1 Myanmar national owned company registered at the EPD, of their own choosing with regard to shallow water blocks. Importantly potential bidders in are not required to partner with a local company to develop deep water blocks. This represents a change in the Government’s approach from earlier bidding rounds including the recent Onshore Bidding Invitation. Deep water blocks are extremely expensive to map and develop and only two Myanmar companies - Parami and MPRL E&P - have deep water exploration experience. The EPD will provide a list of local companies who have registered their interest in cooperating with foreign companies to develop shallow offshore water blocks.