Foreign firms permitted to operate petroleum business
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The Myanmar Investment Commission has granted licences to six foreign companies to operate petroleum business in oil and gas blocks located in Inndaw-Yanan area and Zeephyutaung-Nantaw area, Sagaing rgion; Taungoo-Pyinmana area, Thaekone-Shwetu area, Mara
The licences were issued on July 18 for India-registered ONGC Videsh, Brunei-registered Brunei National Petroleum, United Arab Emirates-registered Pacific Hunt Energy, Luxembourg-registered CAOGS, Netherlands-registered Bashneft International and Liberia-registered Petronas Carigali Myanmar. The commission screened the firms based on reports and recommendations from ministries, organisations and regional governments.
China and Thailand rank as two top investors in Myanmar. Energy sector attracts most foreign investment and the construction sector is at the bottom list.
The Energy Ministry announced four out of 16 onshore blocks put on international tenders in 2013 have been signed with respective firms and the rest will be signed in the second week of August.
“The signing for 4 out of 16 onshore blocks took place on July 30. The remaining blocks will be signed on August 8,9 and 10,” said a ministry official.
According to the reports from the ministry, Improved Petroleum Recovery Contract and Production Sharing Contract were signed for four onshore blocks and the ministry received US$26.01 million in return.
Myanmar currently has 24 offshore blocks from which 10 foreign companies are extracting oil, and 10 onshore blocks on which 8 foreign companies are working.
Aircraft charter and ambulance services to Bangkok, Singapore
Myanmar MJETS Business Aviation Centre is offering aircraft charter and ambulance services from Yangon to Bangkok and Singapore. MMBAC opened on August 2 at Yangon International Airport.
“Customers can have chartered flights and ambulance services at MMBAC. Currently, the chartered flights fly to Bangkok and Singapore,” said Ohn Myint, executive chairman of Myanmar MJETS.
At present, the Myanmar citizens charter the flight usually once a week and fly to Singapore and Bangkok for medical treatment. The aircraft will be extended along with the demand.
The services MMBAC is offering are business aviation centre, business and conference facilities, pilots briefing room and baggage service. More aircraft services like aircraft refuelling, handling, washing and bright work, cleaning, hotel reservations and tour booking will be added before long.
The centre is also facilitated with customs and immigration counters and offers one-stop services for the visitors with private jets.
Rice market on border nearly stagnant
Rice trading has nearly halted on the border between Myanmar and China as the Chinese central government is launching a project to arrest culprits and prevent rice coming from Myanmar in Ruili and other places, according to Myanmar Rice Association (Muse)-MRA.
Consequently, both Chinese and Myanmar merchants are avoiding trading in rice.
Chinese authorities are reportedly confiscating bags of Myanmar rice from the warehouses in China’s town of Ruili. Moreover, stopping of trucks loaded with rice, seizing of the goods and confiscation of those trucks for a month and even threatening to arrest the drivers have led to the completely stagnant rice market.
“The market has been closed for three days. These days there are many arrests under orders from the Chinese government. Chinese merchants dare not purchase rice and Myanmar merchants dare not sell their rice either,” said Chan Tha Oo, vice-chairman of Muse Rice Wholesale Centre.
“We dare not sell our rice because we are doing it on credit. If Chinese merchants are arrested, there could be a problem with the payment for us. This is why the market has stopped. On August 1, MRA issued an announcement about that.”
Previously, Myanmar exported 60,000 to 70,000 rice bags daily to China through the border town of Muse. The rice usually comes from Ayeyawady, Bago, Sagaing, Magway and Yangon regions and a bag of rice is worth about 153 yuan in China.
About 8 per cent of Myanmar’s total rice export flows to China. In doing so, Myanmar exports its rice legally but Chinese authorities ban it. Although both sides have reportedly been holding discussions about official rice trading, no decision has been reached.
