Myanmar: Energy Sector Due to See Changes

Myanmar: Energy Sector Due to See Changes

Burma's oil and gas industry could be due for a shake-up amid a rise in
mergers and acquisitions in Asia's energy sector, according to a report in
Nikkei.com

Major Western oil producers are seeking to divest assets in the region, the
report says, while interest in purchasing will likely increase from Chinese
and local companies.

Shell, Chevron, Total, ExxonMobil and Eni are believed to be willing to
dispose of up to $40 billion in assets in Burma, Bangladesh, Malaysia, China
and New Zealand, the report said.

Likely buyers are Chinese state-owned oil companies, private equity firms
and local independent energy groups, according to Wood Mackenzie, a UK-based
energy research company.

Chevron and Shell hold the largest portfolios of legacy assets in Asia and
both signaled last year that they plan to sell holdings in Burma,
Bangladesh, Thailand, New Zealand, Malaysia and China.

ExxonMobil, Total and Eni are also expected to continue to divest as they
refocus their global portfolios, according to Nikkei.

Chevron is reportedly interested in divesting in Burma, where it holds a
stake in the Yadana project reportedly valued at around $1.3 billion, and
owns rights to the A-5 exploration block.

"Block A-5 is a good asset with plenty of buyers interested, but Chevron
wants a competitive price. Otherwise they will keep it," said Blair Miller,
a Singapore-based energy trade and investment adviser with Scottish
Development International.

Shell holds stakes in seven offshore exploration blocks in Burma's
potentially gas-rich waters and is also likely to divest some of its assets,
said Adrian Pooh of Wood Mackenzie.

Burma remains attractive to buyers because of expanding domestic demand as
well as nearby energy-export markets like China and Thailand, according to
Nikkei.

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Link to Original Article:
https://www.irrawaddy.com/business/business-roundup-march-4.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com