Myanmmar

Myanmmar: Govt has signed a raft of oil exploration deals with foreign co’s, state media reported on Wed, as the reformist govt seeks overseas investment to spur economic development. State-owned MOGE has inked nine agreements since early March to allow firms from Asia and Europe to explore for oil and natural gas. It was the first time in the history of MOGE to sign nine agreements within such a short period, a report said, without giving financial details. The firms are EPI Holdings of Hong Kong, Geopetro International Holding of Switzerland, Petronas of Malaysia, Jubilant Energy of India, PTTEP of Thailand, Istech Energy of Indonesia and CIS Nobel Oil of Russia. The report said the energy ministry had decided in principle to grant licences to foreign companies to invest in Myanmar only if they cooperate with domestically owned firms. It said 10 foreign companies were exploring for oil at 24 offshore energy fields, while eight overseas firms - as well as seven joint ventures with local companies - were exploring 20 inland fields. We note that news could be positive for Interra, who is banking/counting on increased capex by foreign O&G firms to tap on their facilities/transport systems, to drill certain wells, which the grp has capped, due to a lack of capital/investments.