Myanmar government is set to receive a record USD 60 million in fees from oil contracts during the 2015-16 fiscal year

During the 2015-16 fiscal year, the government is set to receive a record $60 million in fees from oil contracts, the Ministry of Energy said.

From these oil blocks contracts, the reward money of contract for 2011-12 totalled $3.55 million, in 2012-13 it was $19.47 million, and in 2013-14 it was $7.29 million, according to Ministry of Energy data.

“For inland oil blocks, the companies complete EIA/SIA survey within the first six months. When related ministries approve the project, they can start operations. They pay a ‘contract reward’ money to us before they begin operations,” U Min MinOo, secretary of the Public Relations Department of the Ministry of Energy, told Myanmar Business Today.

Inland oil blocks were called for international tender for the first time in 2011. Six local companies and six foreign companies won tenders for eight inland oil blocks and started operations.

A second tender was called in 2013, and 10 local companies and 10 foreign companies won tenders for 16 inland oil blocks.

Currently, 10 onshore blocks and 10 offshore blocks are jointly operated by 13 foreign companies and 8 local companies, according to the ministry of energy announcement.

​