However, U Win Khine, Union Minister of the MOEE, did not provide a timeframe on when the profit sharing contract (PSC) for development of the well would be signed. 

“Negotiations are still in the process. So we cannot provide an exact date on when the PSC between the government and oil majors can be signed for now,” he said in a press conference held in Nay Pyi Taw on September 25.  

 U Win Khine said the government can buy 25percent of the natural gas generated from the well at a discounted rate for domestic consumption. Negotiations on the exact price to be paid still needs to be made. However, if the government buys more than 25 pc of the gas produced, it will have to pay at the international market price.

The Shew Yee Htun-2 gas discovery, which is the fifth consecutive discovery at block A-6, is expected to draw more interest in Myanmar oil and gas sector at a time when the country is planning to open up more blocks to investors. “We hope the discovery will generate more interest from oil companies,” U Win Khaing said.

The MOEE will conduct tenders for exploration and production activities at unoccupied and relinquished offshore and onshore oil and gas blocks during the first and second quarters of 2019.

If all goes according to plan, it will be the first time a bidding round is held under the current government. The last tender for work at Myanmar’s oil and gas fields was conducted in 2014 under U Thein Sein’s former administration. 

With oil and gas reserves at Myanmar’s offshore blocks now approved for commercial activities, FDI  in the sector is likely to increase in the coming year, said U Thaung Tun, chair of Myanmar Investment Commission (MIC) at the Pyidaungsu Hluttaw meeting in August.

In 2017-18, FDI decreased to US$900 million due to a lack of investments in the oil and gas sector. IN 2018-19 though, around 20 oil majors including PTTEP, ENI, Daewoo and Woodside will commence seismic surveys and exploratory drilling in more than 20 onshore and offshore blocks. 

Source: https://www.mmtimes.com/news/govt-hopes-draw-more-oil-and-gas-investments-after-rakhine-offshore-discovery.html