April 11, 2013 9:46 AM

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Myanmar opens oil block auction;fierce bidding expected as foreign giants hope for energy bonanza

Myanmar launched an auction of30 offshore oil and gas exploration blocks on wednesday, expected to draw fierce competition from foreign giants hoping for a share of an energy bonanza.The energy ministrysaid on its website that successful bidders will be granted full rights to up to three of 19 deepwater blocks on offer.Firms have been previously required to partner with state oil companies for onshore blocks, but due to the high cost andtechnical skills required, bidders must take full control for deepwater exploration.Bidders will, however, be required to enter into a production sharing contract with the state-owned Myanma Oil and Gas Enterprise (MOGE). Last month Aung Kyaw Htoo, assistant director of the energy ministry, told AFP that oil majors such as BP, Woodside, Shell and Chevron were interested in bidding.

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