Private Sector Pioneer Discusses Myanmar’s Energy Potential

U Moe Myint, founder and CEO of Myint & Associates and of the MPRL E&P Group, has an in-depth understanding of his country’s energy industry. He is also the founder and majority shareholder of Asia Drilling Pte Ltd and has served on several boards in the banking and education sectors. He has over 30 years of experience in the fields of aviation, aerospace and energy, in Myanmar and overseas.

Following graduation from University of Rangoon (in Myanmar) and Marshall University (in West Virginia USA), U Moe Myint qualified as a commercial pilot and spent 13 years flying with Myanmar’s national airline. Next he moved to California to serve as Vice President at Interaero Inc., dealing with aerospace parts and equipment as well as dynamic motion simulators. He returned to Myanmar in 1989 to serve as a consultant to Shell International Petroleum during its negotiations and start-up operations in the country. For almost two decades, U Moe Myint has also been active in Myanmar’s sailing activities, serving as President of the Myanmar Yachting Federation, Past Commodore and Honorary Life Member of the Yangon Sailing Club, founder and patron of the Myanmar Optimist Dinghy Association, and a member of the Myanmar National Olympic Committee.

European Times: Can investors in Myanmar’s energy sector count on transparency?

U Moe Myint: The Ministry of Energy has a very strong committee system designed to ensure transparency through a check and balance system. The Technical Sub-committee scrutinizes tenders and contracts and advises companies if something must be changed. The Financial Sub-committee works with accountants overseeing annual budget allocations and financial commitments.  These Sub-committees report to the   ProductionSharing Contracts Management Committee chaired by the Managing Director of the state-owned Myanmar Oil & Gas Enterprise (MOGE), where everything is again scrutinize before cases are submitted to the Steering Committee of the Ministry which is chaired by the Deputy Minister of Energy, before final submission to the Union Minister. For Production Sharing Contracts cases are further submitted to the Myanmar Investment Commission (MIC), the Attorney General’s office and then finally to the Cabinet. This long, well-thought-out process ensures transparency. President U Thein Sein has made transparency the highest priority in the government. What he has done for this country in less than three years is dramatic and amazing.

European Times: What role can European investment play in developing Myanmar’s oil and gas industry?

U Moe Myint: Many O&G companies are interested in Myanmar’s shallow-water blocks. However, all international companies are required to have a local partner in order to bid for shallow water blocks included in the 2013 Myanmar Offshore Bid Round. Myanmar companies are also looking for long-term strategic partners which will allow them to grow together through the exchange of technology, transfer and training. The key benefit of having such a requirement in place will be towards enabling transfer of industry expertise and best practices to the local human resource pool. It is also a means to prevent the country from falling into the resource curse, a key aspect of which is the lack of knowledge transfer.

European Times: What are some of the challenges for the energy sector?

U Moe Myint: In the past, the biggest challenge for Myanmar’s petroleum industry was getting access to capital. Now international banks want to work with partners in Myanmar, which is extremely important given the capital-intensive nature of the petroleum sector. The second challenge is technology. Thanks to technology, the US will transition from a net importer to a net exporter of liquid natural gas by late 2013 or early 2014, potentially competing with major exporting countries like Saudi Arabia. We are now in process to bring the same technology to Myanmar. A current challenge is human resources, because many of Myanmar’s Oil &Gas professionals emigrated. We are currently working actively to encourage Myanmar’s professionals living abroad to come home and work here.

European Times: How important is the energy sector to Myanmar’s development?

U Moe Myint: Myanmar has proven Onshore and Offshore Oil & Gas resources and compared to other countries around the world, is still very much under-explored through the use of both conventional & modern oil & gas industry standard technology.  Nevertheless, in the past, oil & gas companies, including MOGE, have taken exploration risks and drilled wells under very challenging circumstances both technical as well as political. This has led to a better understanding of the geological formations in the country’s unexplored areas and did accelerate the pace     where key discoveries were made such as Yadana, Yetagon & Shwe Fields. If we make additional new discoveries, development, production and supply will follow. This will certainly have significant   impact on the local economy and further create thousands of job opportunities.

European Times: What can you say to investors who worry about corruption in Myanmar?

U Moe Myint: Myanmar’s energy sector has been influenced more by international companies than by the previous regime. Now our business leaders have realized they can no longer act in the old way, and our president has led an impressive turnaround. Myanmar has changed enormously in only three years, and the people in this country live in harmony with a great sense of tolerance for each other. The world needs to give Myanmar a chance. Exciting energy blocks are now in stream here and revenues will continue to flow in which the government will invest in infrastructure and public services. I am proud to be a part of Myanmar’s energy sector, because it will play a major role in the sustained development of our country.