Energy
From The Report: Myanmar 2015
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Myanmar has already hit its investment target of $4bn-5bn for the 2014/15 fiscal year six months ahead of schedule, thanks in part to the energy sector, which attracted $800m of investment in the first half of the fiscal year. As of December 2014 revenue from foreign investments in the oil and gas sector came to more than $15.1bn, second only to the power sector, which stood at $19.3bn. This represents about 30% of the country’s total foreign investments. As Myanmar works to promote renewable energy to complement its insufficient electricity supply, new opportunities within the sector have opened up for foreign investors who can help to boost the country’s power generation. In the long term a fully developed electrification system, along with offshore gas exploration, look set to accelerate Myanmar’s growth in all aspects of the energy sector. To achieve this growth, the government must keep up the pace of its reform programme, in turn speeding up the country’s integration into the world economy.

This chapter contains interviews with U Zay Aung, Minister of Energy; Ken Tun, CEO of Parami Energy Group; and U Zeya Thura Mon, CEO, Zeya & Associates.

Articles from this Chapter

Overview

The removal of international sanctions has led to major reforms throughout the sector
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Myanmar's unexplored but rich natural resources have transformed it into one of the fastest-growing countries in the region. The government set an agenda for economic reforms in 2011, alongside an uptick in growth, the removal of international sanctions and an influx of foreign investors, particularly in the energy sector. The country's strategic location within the region and population of more than 50m will help it achieve growth, with international analysts predicting Myanmar's economy to be worth…

Interview

U Zay Yar Aung, Minister of Energy: Interview
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Interview: U Zay Yar Aung How has the global oil and gas community reacted to the opening of Myanmar’s oil fields? U ZAY YAR AUNG: The global oil and gas community, especially companies from the EU and the US, have expressed increased interest in Myanmar’s energy sector since political and economic reforms led to the lifting of international sanctions. In 2011 we began an international bidding process on 18 onshore blocks, eight of which were ultimately awarded to six international oil companies.…

Analysis

Renewables to the rescue: Stimulating developments in renewable power generation, particularly hydropower
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As Myanmar works to promote renewable energy to complement its insufficient electricity supply, new opportunities within the sector have opened up for foreign investors who can help to boost the country’s power generation. In November 2014, the US-based ACO Investment Group announced that it was developing two 150-MW solar energy plants in Myanmar, valued at $480m. The plants are expected to contribute about 10-12% of Myanmar’s power generation upon their completion in 2016. Natural Resources The…

Viewpoint

Ken Tun, CEO, Parami Energy Group, on the future of energy security
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Deep in the heart of Myanmar is the town of Yenangyaung, which is famous for two things: it produces the best onions in the country, and it is the site of one of the world's oldest producing oil fields. With this historical backdrop, Myanma Oil and Gas Enterprise (MOGE), the national oil company, has signed more than 100 production contracts so far. While Myanmar has good fundamentals in place for its oil and gas sector to flourish, the country was isolated from the global community for over 20…

Interview

Power To The People: OBG talks to U Zeya Thura Mon, CEO, Zeya & Associates
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Interview: U Zeya Thura Mon What can be done to ensure Myanmar’s power supply can meet the growing demand? U ZEYA THURA MON: There are a lot of things that need to be done in terms of infrastructure development. In terms of power, there is room for more generation than we have at the moment, from the current 4362 MW up to 23,600 MW, with 30% achieved within the next 15 years. This represents a huge opportunity for the power sector. One challenge that the government still needs to overcome is…

Analysis

Pursuing growth: Oil and gas has become a major destination for foreign investment
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Under plans revealed in October 2014, state-owned energy firms in Myanmar will be able to seek foreign partnerships to improve operations and open up downstream energy operations to investment. The energy industry is set to become one of the most attractive prospects for overseas investors following a reduction in the role of the state and the launch of new power projects. As well as privatisation plans, the energy agency also said it would offer nine new offshore blocks for exploration, in a bid…

Analysis

Legislative reforms have made the sector more accessible
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The oil and gas sector has formed one of the most important objects of the government’s ambitious programme of economic reforms over the past few years. A rise in licensing activity will contribute to increased exploration, responding to a surge in demand for oilfield services. Foreign investment from some of the world’s largest oil and gas companies has played a pivotal role in developing the sector. In October 2014 Myanmar announced it would launch a new round of oil and gas auctions in 2015,…

Analysis

Achieving full electrification through new power plant projects remains a priority
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As reforms aimed at integrating Myanmar into the world economy gather pace, the country is making efforts to boost its power generation capacity. The Myanmar National Electrification Plan (NEP) aims to achieve 100% electrification by 2030, an ambitious plan given that as of September 2014, only 33% of the population had access to electricity, the peak load is 2171 MW and per-capita consumption is at 232 KWh. Public buildings such as schools, hospitals, as well as local businesses in rural areas all…