The Ministry of Electricity and Energy (“MOEE”) has announced that it will commence new tender rounds for offshore oil and gas (“O&G”) blocks in late 2018. It is foreseen that these blocks will be available for exploration and production purposes (“2018 Tender Rounds”). The exact dates of the 2018 Tender Rounds are yet to be formally publicised.

The Myanma Oil and Gas Enterprise (a division of the MOEE) (“MOGE”) has confirmed that foreign O&G firms (“Foreign Firms”) will not be mandatorily required to jointly participate with “local” Myanmar O&G firms (“Local Firms”) in the 2018 Tender Rounds. Under this change in internal MOGE policy, joint participation of Local Firms is now voluntary.

Despite this laxation, MOGE has encouraged Local Firms to attract partnerships with foreign O&G firms to participate in the 2018 Tender Rounds. However, Local Firms intending to attract partnerships with Foreign Firms to participate in the 2018 Tender Rounds will now be required to register with the MOEE’s Oil and Gas Department (“OGD”) and obtain clearance.

Upon registration, the OGD will review and scrutinise the application for registration and determine whether or not the Local Firm should be given clearance to jointly participate with the Foreign Firm in the 2018 Tender Rounds (“OGD Clearance”). The rationale of the OGD Clearance requisite is to ensure that Local Firms intent on joint foreign participation in the 2018 Tender Rounds possess the relevant industry experience, finance and technology.

There will be no deadline for Local Firms to register with the OGD. However, Local Firms that register in 2019 will not be eligible to jointly participate in the 2018 Tender Rounds.

Through our office in Yangon, Duane Morris & Selvam advises corporations on investment, business and regulatory processes in Myanmar. For further information, please contact Mr Krishna Ramachandra (kramachandra@duanemorrisselvam.com), Ms Babita Ambekar (bambekar@duanemorrisselvam.com), Mr Rory Lang (rjlang@duanemorrisselvam.com) or visit www.duanemorrisselvam.com. Duane Morris & Selvam is recognised as a leading law firm for Myanmar related Corporate, M&A and Projects (including Energy) work – The Legal 500 (2017 & 2018).