IEEJ：July 2017 © IEEJ2017

Republic
pof the Union of MyanmaryMinistry of Electricity and Energy

Current Status of Oil and Gas Sector

IEEJ：July 2017 © IEEJ2017

ContentsI.

Country Profile

II.

Organizational Structure of Ministry of Electricity and Energy

III.

Institutional Framework for Myanmar
yEnergygy Sector

IV.

Energy Reserves

V.

Current Energy Policy and Measures

VI. Energy‐related investment for domestic and overseas
VII. Way forward for Petroleum Sector

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IEEJ：July 2017 © IEEJ2017

 Capital (Administrative)
 Largest City (Commercial) Population
 Official Language Currency Climate (Seasons) Total Land Area
 Population Density per km2
 Population Growth Rate(annual) Forest Area
 Literacy Rate
 Standard Time Neighbouring Countries

 CoastalC t l Strip
St i GDPNay Pyi Taw
Yangon(about 5,000,000 people)
Over 51 millions
Myanmar
Kyat
Summer, Rainy and Winter676,577
,km2
84.2
0.9%
49% of the Country92%
Six hours and thirty minutes
ahead of Greenwich Mean Time
China (North and East)
Laos (East)
Bangladeshl d h andd Indiad(North‐West)
Thailand (South‐East)
2 832 km2,832k facingf i tot theth bay
b off
Bengal and Andaman Sea
6.53

IEEJ：July 2017 © IEEJ2017

II. Organizational Structure of Ministry of Electricity and Energy

MOEEElectricity

DEPP

DPTSC

DHPI

•Policy & •Transmission • Hydro
Planning & System
PowerControl

ESE

Energy

EPGE

YESC

MESC

OGPD

MOGE

MPE

MPPE

• Distribution • Generation • Yangon • Mandalay • Technical Arm •Exploration •Refineries •Marketing• Fertilizers
Distribution Distribution • Coordination • Drilling•Production• Management• LPG• OnshoreO h• Regulation
Pipeline
Construction• CNG

 Previously, we have the two separate ministries as MOEP & MOE
 Currently, these two ministries are merged as Ministry of Electricity andEnergy for compact and perform the functions in efficient and effectively
 MOEE isi takingt ki
theth responsibilities
ibiliti off electricity,l t i it oil
il & gas andd renewableblenergy(Hydro, solar, bio-fuel & geothermal) sub-sectors
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IEEJ：July 2017 © IEEJ2017

Institutional Framework for Myanmar Energy Sector
Petroleum & Geothermal

MINISTRY OF ELECTRICITY & ENERGY

CoalMINISTRY OF NATURAL RESOURCES &ENVIRONMENTAL CONSERVATION

Energy Efficiency andConservation

MINISTRY OF INDUSTRYMINISTRY OF EDUCATION (Leader)

RenewableRbl Energy
E(Solar,(S lWind, Mini/ Micro
Hydropower, Biomass,Bio-fuels, Biogas

MINISTRY OF AGRICULTURE , LIVESTOVES AND
IRRIGATIONMINISTRY OF NATURAL RESOURCES &NV ON
NCONSERVATIONCONS VONENVIRONMENTALMINISTRY OF INDUSTRYMYANMAR ENGINEERING SOCIETY & RENEWABLE
ENERGY ASSOCIATION MYANMAR

Civilian Nuclear Energy

MINISTRY OF EDUCATIONIEEJ：July 2017 © IEEJ2017

Sedimentary Basins of Myanmar• A total of 17 sedimentary basins havebeen identified to date, of which;• 3 Onshore Tertiary basins(Central, Pyay & Ayeyarwady Delta) areproducing oil and gas• 3 Offshore Tertiary basins(Moattama, Rakhine & TanintharyiOffshore) are producing gas andcondensate• 8 onshore Tertiary frontier basins needfurther explorationp• 3 onshore Pre‐Tertiary basinsare secondary Targets
Targets.
6

IEEJ：July 2017 © IEEJ2017

Blocks on Production Sharing Basis
TYPES OF BLOCKSPSC BLOCKS (PSC)EXPLORATION / PRODUCTION BLOCKS (EP)

IMPROVED PETROLEUM RECOVERY BLOCKS(IOR)

REACTIVATION OF SUSPENDED FIELDS (RSF)

MOGE RESERVED BLOCKS (MOGE)‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Total 104 Blocks (Onshore + Offshore)
53 Blocks (Onshore)
51 Blocks (Offshore)‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Type of Contract:
Mainly Production Sharing Contract (PSC)

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IEEJ：July 2017 © IEEJ2017

Daily Oil and GasProduction, Exportation and Domestic useOil Onland Offshore
Total‐ 7000 bbls
‐ 5000 bbls (Condensate)‐ 12,000 bbls

Gas
 Onland Offshore
Total
 Export to Thailand Export to China
 Domestic use‐ 50 MMscfd‐ 1.75 Bscfd‐ 1.801 80 Bscfd‐ 950 MMscfd‐ 400 MMscfd‐ 400 MMscfd
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IEEJ：July 2017 © IEEJ2017

Gas Distribution
Onshore ‐ 50 MMCFD(CNG Stations, Petrochemical Plants)
Offshore ‐ 1850 MMCF
YADANA- 850 MMCFD
650 MMCFD Export
200 MMCFD Domestic(YGN area GT & GEG, Shwetaung Mag)YETAGUN - 200 MMCFD ExportZAWTIKA - 300 MMCFD200 MMCFD Export
100 MMCFD Domestic(KBK,Mawlamying,Thaton,YGN)
ZTK

SHWE

- 500 MMCFD
400 E
Exportt
100 Domestic(KPU,YNG,Myingyan,KSE)IEEJ：July 2017 © IEEJ2017

The operations currently in Petroleum Sector

Onshore Operating
Oti
 OpenTotal‐ 37 BlBlocks
k‐ 16 Blocks‐ 53 Blocks

Offshore Operating OpenTotal‐ 38 Blocks‐ 13 Blocks‐ 51 Blocks

IEEJ：July 2017 © IEEJ2017

Existing Offshore Projects in Myanmar
YADANATOTALUNOCAL
PTTEP
MOGE

31.24%
28 26%
28.26%
25.50%
15.00%

ExportDomestic

SHWEDAEWOO
ONGC
GAIL
KOGAS
MOGE

PROJECT

650 MMscfd
200 MMscfd

YETAGUNPETRONASNIPPONPTTEP
MOGE

Export

PROJECT
51.00%
17.00%
8.50%
8.50%
15.00%

Export450 MMscfd
Domestic 100 MMscfd

PROJECT

40.91%
19 32%
19.32%
19.32%
20.45%

200 MMscfd
5,000 condensate

ZAWTIKAPTTEPMOGE

PROJECT80.00%
20.00%

ExportDomestic

200 MMscfd
100 MMscfd

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IEEJ：July 2017 © IEEJ2017

Sector wise Gas Utilization (As at 2017)
Industries,13.4%
CNG 4
CNG,
4.2%
2%

Others 0.1%
Others,0 1%

Fertilizer,
5.6%
LPG,
0.6%Refinery,
1.2%

Gas Turbine,
75.0%

Gas Turbine
Refinery
LPG
Fertilizer
CNG
Industries
OthersIEEJ：July 2017 © IEEJ2017

Final Energy
gy Consumption
pbyy Sector ((2014‐15)) KTOE

INDUSTRY SECTOR,
2177, 12%TRANSPORT SECTOR,
1730, 10%

INDUSTRY SECTOROTHER SECTOR, 13508,78%

TRANSPORT SECTOROTHER SECTORIEEJ：July 2017 © IEEJ2017

Primary Energy Supply (2014‐15) KTOE

Oil & PP, 3385, 17%

NATURAL GAS, 2433, 13%

BIOMASS, 10069, 51%

HYDRO, 3395, 17%
Oil & PPNATURAL GASHYDROCOALCOAL, 322, 2%

BIOMASSIEEJ：July 2017 © IEEJ2017

Prediction for Gas Demand & Supply in Myanmar
GAS DEMAND AND SUPPLY FORECAST IN MYANMAR
1100

GGas
DemandDd Forecast
Ft
1000
900

LNG

Dailyy Average mmmscf

800
500

700
450

500

500

500

500

500

500

500

500

600
500

00
Zawtika
100

400

100

100

100

80
100

70

300
0 92
0.92

46
11.98

100

100

100

77
40.69

68 44
68.44

100

0665

60

225

225

225

100

225
200

158.04 165.46

50

310

330

350

365

57

100

180

50

50MOGE
50505040404638160

Yadana
665

280
69

100

100
665

Add Off Blocks
19083100

Shwe 100200
181.22 186.79 182.35 187.43

150

10040120409040100
2530312521100

826856303030302011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Year

IEEJ：July 2017 © IEEJ2017

LNG Business In Myanmar, LNG is one of the options for future gas supply tofulfill the domestic needs.
needs Due to the gas shortage in power
sector and industrial sector, LNG business is significantly
feasible for short term and medium term period to fulfill the gapof gas demand.
 Currently, two existing out of 4 offshore projects are being
d li d so we consider
declined,
id to encourage theh domesticdirequirements using by LNG till to produce from new discoveries
in Myanmar offshore region.
region Accordingly, we have invited LOEI for LNG import and selected
appropriate location to proceed for LNG tender which will belaunching very soon.
 All technical and commercial assistance are provided by WorldB kBank.
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IEEJ：July 2017 © IEEJ2017

Corporatization ServicesCorporatization procedure for selected services of MOGE
are as follow:‐‐Drilling Rig Services‐Seismic Services‐
Pipe laying and Maintenance Services
LOEI were declared for those services since June, 2014 andin order to establish 3 JVs
JVs’ tendering process,Roland Berger
Pte. Ltd. was awarded for consultancy service to makeissuing and evaluation.
On the other hand, to fulfill the logistic requirementof offshore petroleum operations, offshore supply basetender will be launched in very soon for JV with potential
partner.
g g for corporatization
pAll these are encouraging
purpose.

IEEJ：July 2017 © IEEJ2017

Tentative National Energy Policy of Myanmar
1. To minimize the environmental impacts, to include natural resources utilization plan for
future generations , to invite the local and foreign investments and to continuously carryout Corporate
CSocialS i l Responsibility
Ribili (CSR) activities
i i i ini extraction
i andd utilization
ili i off naturall
resources in order to fulfill the nation’s energy needs.
2. To adopt prioritized plans on Energy Efficiency and Conservation
3 In defining the energy pricing in accordance with the market oriented economy,
3.
economy thenecessary laws and regulations shall be promulgated by observing the ASEAN andinternational energy pricing policy in order to maintain the stability of energy prices, toguarantee the economic befits for both energy producers and energy consumers
consumers, toensure affordable energy price for the people, to ensure affordable energy price for thepeople and to set up an energy fund:‐
4 To follow energy standards and specifications which are appropriate for the nation and4.
which are also in compliance with ASEAN and international practices.
5. To promote private sector participation or privatization according to the State’s economic
policy for realizing the success of State’s
State s Own Enterprises.
6. To lay down the short term and long term plans for not only renewable energy andhydropower projects but also feasible utilization of Liquefied Natural Gas (LNG) in thermal
power plantspp
to generategmore electricityy in order to meet the increased demand which
will accompany with the nation’s GDP growth.
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IEEJ：July 2017 © IEEJ2017

Tentative National Energy Policy of Myanmar (cont;)
7. To participate
i ii regionalinil energy tradingdi (such( h as electricl
i power, crude
d oilil andd naturall gas))by expanding the power grid and pipeline network to neighboring countries including
ASEAN nations.
8 To
8.
T implement
i lt theth following
f ll i shorth t termtandd longlt
termplansli order
ind tot gett power
generation stability by conserving the water catchment areas of hydropower dams andthe reservoirs, rehabilitating the aged plants and constructing the new ones in the grid
system and replacing the ineffective transmission lines,lines constructing new lines,lines expanding
the network system and building substations in the national grid system.
9. To prioritize the use of solar, wind, hydro, biomass and other renewable energy resourcesin fulfilling the electricity demand of off
off‐grid
grid areas.
areas
10. To establish Energy Database System and to draw and implement the energy supply plansby surveying the nation’s energy demand annually.
11. To formulate a plan on civilian use of nuclear energy.
12. To set up the energy stockpiling plan for future energy security

19IEEJ：July 2017 © IEEJ2017

Market Price (Electricity)
Present Pricei

ConsumedCdRatio

New Pricei

Household1 unit to 100 units
101 units to 200 units
201 units and above

35 kyats
40 kyats
50 kyats
y60.45%?

Industries/Commercial
1unit to 500 units
501 units to 10,000 units
10,001 units to 50,000 units
50,001 units to 200,000 units
200,001 units to 300,000 units
300,001 units and above

75 kyats
100 kyats
125 kyats
150 kyats
125 kyats
100 kyats39.55%IEEJ：July 2017 © IEEJ2017

Market Price (Natural Gas)
ProjectjUniti

Pricei
MMKUSD

Offshore
Export Use
Yadana Project

1MMBTU

5.8333

Yetagun Project

1MMBTU

5.8333

Zawtika Project

1MMBTU

5.8333

Sh Project
Shwe
P j t

1MMBTU

5 9533
5.9533IEEJ：July 2017 © IEEJ2017

Market Price (Natural Gas)Domestic (Government & Private)
Project

Unit

Price
MMK

USD

OnshoreGovernment Use

1,000 ft3

2,000

Private Use

1,000 ft3

6,060

Offshore
Government Use

1MMBTU

7.5(1) Private

1,000 ft3

4.6698(2) Joint Venture

1,000 ft3

5.0105(1) Kyaukphyu
K k h

1MMBTU

7 72077.7207(2) Yenangyaung

1MMBTU

8.4551(3) Taungtha

1MMBTU

8.8654(4) Mandalay

1MMBTU9.1728(iii) Yadana Gas

1,000 ft3

5.0389

Private Use(i) Zawtika Gas(ii) Shwe Gas (Offtake Point)IEEJ：July 2017 © IEEJ2017

O tl k PlansOutlook
PlTTomorrow
Today “Oil & Gas Sector”

Tomorrow “Oil & Gas Sector”

State‐Owned Enterprises
(SOE)



Semi‐State Owned Enterprises

Initiates JV process for
3Drilling Rigs, Pipeline
construction (onshore) andS i i A
SeismicAcquisition
i iti



JV in associated services of Upstream
E&P(Investors and Locals)

JV process for a Refinery andLPG Plants



JV for existing Midstream Capacities andNew Structures!
(Investors and Locals)

Privatized in Downstream(T di & Marketing)(TradingM k ti )

JV in Trading and Marketing ofP t lPetroleum
PProductsd t(Investors and Locals)

Onlyy conventional Resources

Unconventional Resources
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IEEJ：July 2017 © IEEJ2017

Future Potential Opportunities


PProspectst  Deep
DW
Watert AreaA

Upstream E&P is Priority & Associated Services  Today to Year 2023



Integrated Infrastructures  Year 2023 and Forward

Mid tMidstream
andd DownstreamDt
 YearY 2023 andd Future
F t



SOE to Semi SOE  JV between SOE, Local and Investors

Mainly PSC & IPR  Leveling for all International Firms

S i CServiceContracts
t t  JV iin EExistingi ti Structures
St tandd Extend
E t d additionallydditi ll

24

IEEJ：July 2017 © IEEJ2017

Way Forward for Petroleum Sector
 Unconventional and conventional prospects:
 Supply based for Petroleum operations
 Integrate Infrastructure: Pipeline, Plants and Refineries
 JV process for onshore drilling and seismic, pipe‐laying, refinery,
fertilizer LPG plants and associated area
fertilizer,
 JV process for LNG Business Natural gas basis industries are key role in future.
((mainlyy dependspon newlyy discoveries in offshore)) Trading, Marketing and Distribution of Petroleum Products
 Enhancing Capacity Building in the people of Myanmar
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IEEJ：July 2017 © IEEJ2017

Thank You for Your Kind Attention
Domo Arigato Gozaimasu

Contact :report@tky.ieej.or.jp