Opportunities for Cooperation in Myanmar Petroleum Energy Sector

Aung Kyaw Htoo Assistant Director Energy Planning Department Ministry of Energy

Yangon, 20-21 June 2012
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Content
1. 2. 3. 4. 5. 6.

Ministry of Energy Petroleum Oil & Gas Sector Petrochemical Industry Sector Petroleum Products Sector Opportunities Conclusion

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(Ministry of Energy) Organizations and Respective Responsibilities

Energy Planning Department (EPD) • Technical Arm • Coordination • Management • Regulation

Myanma Oil and Gas Enterprise (MOGE) • Exploration • Drilling • Production • Onland Oil and Gas Pipeline Network • CNG

Myanma Petrochemical Enterprise (MPE)

Myanma Petroleum Products Enterprise (MPPE)

• Refineries & Process • Marketing • Fertilizer Plants • Distribution •Methanol Plant • CO2 and LPG Plants • Waxing & Tar

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Institutional Framework Petroleum Electricity MINISTRY OF ELECTRIC POWER (II) MINISTRY OF ENERGY MINISTRY OF ELECTRIC POWER (I) Coal Biomass and Fuelwood Renewable Energy * MINISTRY OF MINES MINISTRY OF ENVIRONMENTAL CONSERVATION AND FORESTRY MINISTRY OF AGRICULTURE AND IRRIGATION MINISTRY OF SCIENCE & TECHNOLOGY MINISTRY OF INDUSTRY Ministry of Energy is a Focal Point of the Myanmar Energy Sector Cooperation in the Region 4 .

Petroleum Oil and Gas Sector 5 .

Central Myanm ar 2. 2. Shw ebo-Monywa 3. Bago Yom a Not Explored Yet 1. 7. 9. 16. D. 8. Maw lam yine 6. 3. Tanintharyi Offshore 6 . Chindw in 2. Hukaung 2. Moattam a Offshore 3. 14. STATUS OF EXPLORATION (Offshore) Thoroughly Explored Basins 1. Mepale (Oil Shale) A. Hsipaw -Lashio 2. 13. 6. Rakhine Offshore 2. Rakhine Coastal Very Little Explored 1. C. 17. 12.Exploration and Development of Petroleum Petroliferous Basin 1. 15. Sittaung Valley 5. B. Ayeyarw ady Delta (Only Part of the Basin) Explored to Som e Extent 1. SEDIMENTARY BASINS Rakhine Coastal Hukaung Chindw in Shw ebo-Monywa Central Myanm ar Pyay Em baym ent Ayeyarw ady Delta Bago Yom a Basin Sittaung Valley Mepale Maw lam yine Nam yau Hsipaw -Lashio Kalaw Rakhine offshore Moattam a offshore Tanintharyi offshore STATUS OF EXPLORATION (Onshore) Thoroughly Explored Basins 1. Nam yau 3. 5. 4. Pyay Em baym ent 3. 10. 11. Kalaw 4.

7. 2. 8. 6. Rift segments & West Right Lateral Strike Slip Fault Zone 7 . 3. 5. Western Scarp Active Subduction Zone (Andaman Trench) Thrust zone of Western Indo-Burman Ranges (Wedge) Kabaw Right Lateral Fault Zone Central Volcanic Arc Sagaing Right Lateral Strike Slip Fault Zone (Shan Scarp Fault) Nan-Ting (Momeik& ShweLi) Right Lateral Strike Slip Fault Zone Papun-Wang Chao Left-Lateral Strike Slip Fault Zone Three Pagoda Left Lateral Strike Slip Fault Ranong Right Lateral Strike Slip Fault 10. 4. 9.Myanmar Petroliferous Basins Significant Structural Features 1. Andaman Sea Spreading Center.

741 km Gas Pipeline (40”) .Yatana and Yetagun Ongoing (2) to mid of 2013 .A Project for domestic use in Block M-3 Appraisal (1) . 468 km & Post 1871 km) Offshore.5+ onshore 149.Block A-6 Domestic Crude Pipeline Network .) Summary Oil and Gas Fields (onshore) Discovered (28) .Southern Chindwin Basin Gas Fields (offshore) Producing (2) .1 tested and 5 suspended oil fields Appraisal (1) .736 km 8 .Exploration and Development of Petroleum (Cont.450 km & Post 86 km) Domestic Gas Pipeline Network Onshore (4” to 20”) . Zawtika Project M-9 Plan (1) .535 km (Pre 1988.2339 km (Pre 1988.Shwe A-1 & A-3. Yadana to Yangon (24“) .7) Export Gas Pipeline to Thailand (PTTEPI) Yadana to Metering Station (36”) .274 km Myanmar –China Pipeline (Ongoing) Crude Pipeline (32”) .441 km (offshore 286.17 oil fields and 5 gas fields Tested/Suspended (6) .28 oil and gas fields Producing (22) .410 km Yetagun to Metering Station (24”) .

) OIL & GAS FIELDS (ONSHORE) SR NO. 1 2 3 4 SHWE 5 6 7 8 9 10 11 12 13 OIL & GAS FIELDS YENANGYAUNG AYADAW CHAUK LANYWA YENANMA YEAR OF DISCOVERY 1887 1893 1902 1902 1914 1924 REMARKS PRODUCING PRODUCING PRODUCING PRODUCING PRODUCING PRODUCING SUSPENDED PRODUCING PRODUCING PRODUCING SUSPENDED PRODUCING PRODUCING PYAYE (Pyay Embayment) PAYAGON (Ayeyarwaddy Delta) 1959 MYANAUNG (Ayeyarwaddy Delta) 1964 PYAY (Pyay Embayment) SHWEPYITHA PYALO MANN LETPANDO (-do-) (-do-) 1965 1967 1969 1970 1974 1995 2 YEARS & SUSPENDED PRODUCING5 PRODUCING PRODUCING SUSPENDED PRODUCING SUSPENDED PRODUCING PRODUCING SUSPENDED PRODUCING PRODUCING PRODUCING TESTED PRODUCING PRODUCING PRODUCING 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PEPPI HTAUKSHABIN KANNI TABIN APYAUK (Ayeyarwaddy Delta) KYAUKKWET INDAING (Ayeyarwaddy Delta) NYAUNGDON THARGYITAUNG SABE INDAW (Chindwin basin) DAHATPIN HTAGAING MAUBIN (Ayeyarwaddy Delta) (-do-) 1976 1978 1985 1986 1991 1995 1996 1999 2001 2001 2002 2005 2006 2007 HTANTABIN (Pyay Embayment) 1980 9 .Exploration and Development of Petroleum (Cont.

000 20.Production. Supply and Consumption of Natural Gas (Onshore and Offshore) Domestic Demand & Supply CRUDE OIL (BBL/D) DEMAND SUPPLY 60.000 GAS (MMCFD) DEMAND SUPPLY 590 240 Domestic Gas Supply Projects on 2013 (unit in mmcfd) Project Demand 590 73 130 793 Supply 240 60 100 400 51 Supply Ratio (%) 41 Remark Present 2013 2013 2013 Onshore+Offshore Zawtika Project Shwe Project RATIO 33% RATIO 41% Total 61% of Total Natural Gas supply to Gas Turbines 20 % of Total Electricity are generated by Gas Turbines 10 .

Ltd. (Hong Kong) In onshore area. UPR (Singapore) EPI (Holding) Limited (Hong Kong) Geopetrol Intl. Kayin State) (Kanma-Nattaung) (Pyalo-Paukkong) (Tuyintaung. 19 Contracts are active in 19 onshore blocks with 22 foreign companies from 9 countries. 11 . M ying S) (Gwegyo-Ngashadaung) (Hintada) (Taungdwingyi ) (Aung Lan) (Inbin-Tegyigone) (M yingyan) CNOOC (China) SIPC M yanmar (China) North Petro-Chem (China) GOLDPETROL (Indonesia) M PRL E&P (British Virgin Island) ESSAR (India) SNOG. Ltd. (India) PTTEPI (Thailand) Istech Energy EP-5 Pte.Current Onshore Activities Company / Operator Nobel Oil (Russia) Block PSC-A PSC-B1 PSC-C2 PSC-D F IOR-2 M OGE-1 M OGE-2 (N) PSC-L PSC-R RSF-10 RSF-9 RSF-2 RSF-3 PSC-I PSC-G & EP-2 E[-2 EP-5 PSC-E Area (Hukaung) (Uyu) (Shwebo-M onywa) (M ahudaung) (Ngahlaingdwin) (Chauk Oil Field) (Yenangyaung Oil Field) (M ann Oil Field) (Sittwe) (Oil Shale. (Switzerland) Petronas (M alaysia) Jubilant Oil & Gas Pvt. (Singapore) Asia Orient Intl.

MD-4. MD-5.M-10 .Current Offshore Activities Company / Operator TOTAL PETRONAS DAEWOO INTERNATIONAL PTTEPI CNOOC CNPC INTERNATIONAL LTD MPRL E&P RIMBUNAN PETROGAS PETROVIETNAM DAEWOO INTERNATIONAL PETRONAS OVERSEA KMDC Block . A-3 (Shwe Project) . 12 .A-6 .M-9 (Zawtika Project) . M-14 (Yetagun Project) . 24 Contracts are active in 25 offshore blocks with 19 foreign companies from 11 countries. M-13 .M-3. MD-6 .M-2 .AD-1. . M-11. M-15. M-16 In offshore area.M-12 . AD-8 .AD-7 . A-7.A-5.M-5. M-6 (Yadana Project) .M-1 . AD-6.A-1.

MD-2. MD-3. YEB (Vicinity of M3. MD-8 8 shallow water blocks and 17 deep water blocks are open for new investors. MD-7. Yatana. M-7. M-18. Yetagun & Zawtika gas fields and prospective areas) Rakhine Offshore (12 blocks) Deep Water Blocks AD-2 to AD-5 AD-9 to AD-16 Mottama/Taninthayi Offshore (5 blocks) Deep Water Blocks MD-1. M-17. M-8. A-4 (around to Shwe Gas Field) Mottama/Taninthayi Blocks (6 blocks) M-4. 13 .Available Offshore Blocks (25 blocks) Rakhine Offshore Blocks (2 block) A-2.

2 mmcf of Offshore Natural Gas mix with 20 mmcf of onshore gas for supply CNG Program 14 .Cleaner Fossil Energy Programme CNG Program for AUTOMOTONS in Cities Initiated in Myanmar since 1986 1986 – August 2004 (5 CNG Refueling Stations ) 587 NGVs (Converted from petrol buses) CNG / NGV Programme was reactivated in August 2004 45 CNG Refueling Stations in Myanmar27.472 NGVs (Converted from both petrol / diesel cars) Future (39) (39) CNG Refueling Stations will be installed along the existing domestic pipeline corridor.

Petrochemical Industry Sectors (Downstream) 15 .

000 bbl/day) (50 mmscfd) (Ammonia 1340 MTD & Urea 2012 MTD) (450 MT. under rehabilitation) (Liquid 24 Ton & Dry ice 6 Ton/day) 1CO2 Recovery Plant - 16 .Summary of Petrochemical Industry 3 Refineries 3 LPG Plants 5 Fertilizer Plants 1 Methanol Plant - (total capacity 51.

Petroleum Products Sector 17 .

Tankers to coastal terminals Oil barges from refineries to fuel terminal and shops 3. 2.Fuel Transportation and Facilities Modes of transportation of petroleum products 1. Rank lorries 12 Filling Stations for Goverment Sector 260 Filling Stations are privatized since 2010 June 179 New Filling Stations are already distributed and 540 New Filling Stations are still under construction by private sector 18 .

Opportunities 19 .

Rendering for Oil Field Services based on technical & commercial reliability through International Tendering Indispensable equipments for pipeline. Research and Development Managing Director Myanma Oil and Gas Enterprise (MOGE) Fax: 95-67-411125. 411178 E-mail : mogemd@mptmail. gas compressor. 3.Opportunities for Cooperation (in Petroleum E&P) 1. .mm 20 2. New Prospects in Petroliferous Onshore & Offshore Blocks for Exploration and Production under PSC Basis Direct Negotiation to Offshore Blocks International Bidding Round Year 2012 for most of available blocks will be lunching on next 2-3 months.net. separator. production units and CNG kit etc. 4.

2. Nay Pyi Taw.Procedures to Conduct Petroleum Operations in Myanmar Onshore Areas On Production Sharing Contract (PSC) 1. Ministry of Energy Building No. Submit Letter of Expression of Interest Credentials: Article of Association (AOA). . Certificate of Incorporation. 5. Latest Financial Statement (of) Financial Report Documents are to be endorsed for authenticity by Representative Embassy of the Republic of the Union of Myanmar at the place of Company’s registration (or) establishment or nearest Sealed envelops superscribed “Confidential” “Myanmar Onshore Blocks Bidding Round-2012” Address to: Director General.6. Email: myanmoe@mptmail.net. Energy Planning Department. Latest Annual report. 4.mm 21 3. The Republic of the Union of Myanmar Fax: +95 67 411 113.

8.Procedures to Conduct Petroleum Operations in Myanmar Onshore Areas On Production Sharing Contract (PSC) (Contd. Terms and Conditions. 7. The proposed Terms and Conditions will be assessed by EPD The best offered Terms and Conditions will be selected for awarding blocks The Model “Production Sharing Contract (PSC)” will be provided to Awarded Potential Bidders 22 . 9. The potential bidders will be selected into shortlist MOGE will present “General Data Overview” for Bidding Blocks EPD will explain the preferable “Standard Terms and Conditions” Cooperate (Joint operating) with at least one Myanmar National Owned Company which has been registered in Ministry of Energy 10. Not more than 3 blocks are limited to propose 11. Production Sharing Contract and complementing with MOU or MOA or DOA for cooperated Myanmar companies to submit for each proposed blocks.) 6.

2 Years only for Offshore deep water blocks .Laws of the Republic of the Union of Myanmar . UNCITRAL Arbitration Rules 23 (Royalty is available Petroleum depend on water depth for deep water offshore blocks) .12. Extension Production Period Royalty Income Tax Domestic requirement State Participation Governing Law Arbitration (TEA).20% of Crude Oil and 25% of Natural Gas of CONTRACTOR’s share of profit petroleum at 90% Fair Market Price .Myanmar Arbitration Act 1944.1 year (contractor will have the option to back-off) .25% on CONTRACTOR’s Net Profit (3 years Tax Holiday starting from the Production) .2nd.Production Sharing Contract (PSC) Onshore and Offshore General Terms and Condition of PSCs Technical Evaluating Agreement Exploration Period (Initial term) .20 years (or based on reserve) .1st .5% . Extension . .3 years (contractor will have the option to back-off) .2 years (contractor will have the option to back-off) .15 % of undivided interest and MOGE has the option to extend up to 25% at its own discretion.

New Petrochemical Plants (as a result of discovered gas fields and surplus domestic gas) 8. New Liquefied Petroleum Gas (LPG) Plant (on surplus natural gas) 3. Indispensable equipments for Petroleum Industries 1.g.000 bpd by using Imported Crude from Myanmar-China Crude Oil pipeline 2 Million MT /year 2.mm 24 . Joint venture of Thanlyin Refinery 5. Laboratory.net. 7.Opportunities for Cooperation (in Petrochemical Sector) New Refinery capacity of 56. e. Research and Development. Managing Director Myanma Petrochemical Enterprise (MPE) Fax: 95-67-411126 E-mail : mpeho@mptmail. Material Supply for Petrochemical Plants 6. Process etc. New LNG project in Made Island 4.

Opportunities for Cooperation (in Petroleum Products Marketing) 1. Contemporary Transportation Units. Indispensable equipments for Petroleum Products transportation and distribution systems Managing Director Myanma Petroleum Products Enterprise (MPPE) Fax: 95-67-411281.ho2@mptmail.net.mm . tanker & fuel barge etc. 411484 E-mail : mppe. in tender basic 3. Supply of Petroleum Products to Government Sector when tender invited for spot purchase 2.

Energy Saving Target To reduce Energy Consumption by 5% in 2020 and 8% in 2030 relatively with existing BAU (Business As Usual) scenario To Improve Energy Efficiency 7% in 2020. in the residential sector and 16% in all sectors at 2020 To achieve 15~18% of Renewable Energy in the total power installed by 2020 26 .

mm myanmar.com 27 . Storage Tanks and Jetty for LPG business Marketing of Petroleum Products Lease for Thanlyin Lube Blending Plant Email: mptaoffice@goldenland.com.Public Private Partnership Opportunities Filling Stations.mpta@gmail.

28 . Services in E & P of Petroleum.Conclusion Exploration and Production of Onshore and Offshore Blocks is highly prominence. Joint Venture in Petrochemical Industry. More Opportunities for Investors in Petroleum Products & LPG Marketing Business.

411 113 95 . Nay Pyi Taw 95 .411 099 myanmoe@mptmail.net.6.067 . Ph.411 057 95.067 .Contract Focal Point for Energy Business Person: Address: Fax.067 .mm 29 . no. Email: Director General Energy Planning Department Ministry of Energy Building No.

Thank For Your Time & Attention 30 .

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