January 26, 2021
Nowadays, we can see changes in all industries due to the COVID-19 pandemic. With the digital transformation process, each industry in the world is adapting to maintain and regain their growth before the pandemic in this fast-paced competitive industrial market. This includes the oil and gas industry. The COVID-19 pandemic will also bring unpredictable changes in the future, and the world’s countries including Myanmar will see changes provided by the implementation of new technologies that oil and gas companies are adopting, market competition and climate change.
There are substantial opportunities for investors in our oil and gas sector. Hence, we need to prepare for adapting the changes in the post-COVID-19 era. Amidst the COVID-19 pandemic, new wells are being drilled in inland and offshore fields, and major investment offshore projects such as A-6, A-3, M-9 and M-3 are creating opportunities for services related to crude oil. When new pipeline projects for inland and offshore fields are implemented, we will see further job and service opportunities. In 2021-2022, the price of crude oil is expected to rise spirally, and the changes in demand and supply of crude oil in the world will bring some challenges to our coming new offshore projects.
The Union Government is committed to providing a level playing field that would encourage a greater diversity of international standards, responsible investment, including through the use of open, transparent and competitive tender processes.
Our investment-related reforms are designed to attract responsible and quality investment. To overcome the impacts of the pandemic and counter the investment headwind, we must strengthen transparency and governance. The new Myanmar Economic Recovery and Reform Plan (MERRP) will further strengthen Myanmar’s investment enabling environment over the coming years.
Meanwhile, other stakeholders in the energy sector are urged to seek investment opportunities in infrastructures such as building terminals, plants, laying pipelines and building and maintaining storage tanks for LNG to power projects. Besides, there are investment opportunities for domestic investors in providing services to safety and environmental conservation related to private oil wells and small-scale refinery plants.
To support economic recovery, the private oil and gas industry needs to take steps focusing on job opportunities and sustainable growth in line with the new normal.
