Interra

Myanmar / Interra: ‘Loosen grips on oil sector’. Foreign firms will be granted full rights to Myanmar's deepwater oil blocks, the energy ministry said, a first in a lucrative sector which was once closely-controlled by the authorities. Around 25 new offshore blocks will be opened for tender in April with oil majors such as BP, Woodside, Shell and Chevron "ready" to compete for them. Myanmar's oil and gas industry, which accounts for some 34% of total exports, is seen as the engine of the nation's growth as it emerges from decades of authoritarian army rule. Myanmar note that the huge cost of exploring potential offshore reserves, coupled with the technical skills needed to extract them, meant foreign firms could have full ownership. There are not more than 20 co's in the world who can efficiently operate deep-sea blocks and local co's are not financially strong enough to invest in offshore and the technology is too advanced also. Foreign co's will however be restricted to three blocks each. Recall that Interra Resources has stated in previous interviews that the grp is banking on further investments by oil majors to improve on the O&G infrastructures in Myanmar, which could entable the grp to tap on these infrastructures.