Myanmar expects to receive more than $2 billion from its Oil & Gas Industry in 2018-2019. Revenue will primarily come from the country’s offshore gas production – expected to reach more than 635 million standard cubic feet in 2019 – and marks a turning point for a country that has struggled to develop its Oil & Gas Industry.
A history of oil and gas
Oil exploration in Myanmar began in the early Bagan era and stretched from the ninth to thirteenth century. Before oil was used for energy in the country it was used to coat products as a form of damage prevention. However, Myanmar began exporting its crude oil for energy needs in 1853.
In 1963 Myanmar’s oil industry was nationalised and the state’s oil company (MOGE) took over operations. Despite the government takeover, Myanmar’s isolated location, sanctions and lack of technical capacity continued to hinder development.
Open for business
Myanmar has proven natural gas reserves of 1,820 billion cubic feet (BCF) and its crude oil reserves amount to an estimated 139 million barrels, attracting interest in exploration and investment from other countries. Foreign firms were able to use advanced technology to discover new deposits and develop Myanmar’s reserves.
Despite the Oil & Gas Industry’s potential to improve Myanmar’s economic prosperity, foreign firms still faced challenges in the region, citing high costs and risky exploration processes.
The grand development
In 2017 Myanmar’s Ministry of Energy and Electricity (MOEE) approved the creation of offshore supply bases (OSBs) to supply equipment, warehouses and waste management facilities to operators in the area. Until this decision, a lack of OSBs had been a major hurdle for foreign companies operating in the country. The nearest platforms were in Singapore and Thailand, needing 4-5 days to travel by boat to OSBs, leading to significant costs.
With the introduction of more convenient OSB, national and international oil and gas companies are more willing to invest in exploration and production activities in Myanmar. The government’s revenue expectations for the coming year reflect the country’s increasingly competitive Oil & Gas Industry.
As Myanmar primarily exports natural gas, flaring is an integral part of the country’s gas production. Gas flaring occurs when natural gas is burned as waste during oil extraction, largely taking place for safety reasons. Measurement is important to determine how much gas is being flared and released into the atmosphere. Fluenta’s FGM 160 Flare Gas Meter uses ultrasonic technology to provide the most accurate flow measurement data.
For more information on Fluenta’s FGM 160 Flare Gas Meter, click here.