The state-owned Myanmar Oil and Gas Company [MOGC] is going to sign deals with firms from China, Singapore and South Korea to explore three new areas for energy, according to the state-run media.
Reuters reported that a deal is in the works with “North Petro-Chem Corporation Limited of China for exploration and production of oil and gas in Inland Block F in Ngahlinetwin region. MOGC “will also sign deals with SNOG Pte Ltd and UPR Pte Ltd of Singapore to mine shale in the Mepale region and with South Korea’s Myanmar Development Co Ltd and Singapore’s Brilliant Oil Corp Pte Ltd for exploration and production in Rakhine offshore blocks A-5 and A-7 and Taninthayi blocks M-15 and M16.”
It isn’t necessary to dig out a map and find these places to discover the significance of these contracts. Myanmar has about 570 billion cubic meters of proven gas reserves. Since 1988, it has been exploring in tandem with foreign firms, whose expertise it needs.
China is currently building a pipeline to deliver Myanmar’s gas to the People’s Republic, a pipeline that will be complete in 2013. At that time, China will be Myanmar’s biggest customer for natural gas.
And where are the western energy firms in all of this? They are locked out of the market due to economic sanctions imposed against the military junta that has misgoverned Myanmar for decades. Despite being a big supporter of human rights, I have grave doubts about the efficacy of economic sanctions even when they are airtight. The sanctions against Myanmar (I’ve typed “Burma” four times while writing this, by the way) are anything but airtight. Perhaps, it is time to consider using the carrot of access to western energy expertise rather than the stick of sanctions that haven’t worked.