GE’s Asia head talks about Myanmar Reply

Stuart Dean, GE’s CEO for ASEAN, talks to Forbes about his company’s interest in Myanmar.

• Focusing on what the country needs to transform its economy.
• Mentions its national distributor Sea Lion which sells advanced medical equipment via the Ministry of Health and private hospitals.
• GE Capital Aviation leasing aircraft to Myanma airways.
• Also looking at power generation and transportation infrastructure.
• Wants to see it made easier for companies to do financial transactions in Myanmar without having to go through state-owned banks.
• Energy: short-term focus on quick, distributed power solutions. Long term planning and investment in grid. Supporting oil and gas exploration.
• Looking for more clarity around investment laws.
• Biggest risk is not getting in early enough. Legal and banking problems should be resolved over time. The opportunity is huge.

Foreign Investment law delayed till October Reply

The Financial Times reports that the much anticipated foreign investment law passed in parliament this month will be returned for amendments in late October. 

Meanwhile, the government has promised to streamline ministerial bureaucracy to speed up the implementation of the many reforms now being passed, especially in the financial sector.

The FT interviewed U Soe Thein chairman of the Myanmar Investment Commission, who oversees 11 ministries, who said it was more important to get the new investment law right rather than hurry it through.

U Soe Thein

“He pointed to concerns regarding protectionist provisions among nearly 100 parliamentary amendments to the bill, including a so-called “50-50” provision that limits foreign investment in 13 vaguely defined areas including “agriculture” and business that “harms the environment or eco-system”. Such restrictions and general concerns about investor protection dominated discussion last week among nearly 700 participants at a Euromoney conference in Naypyidaw.

“This bill is an important yardstick for investors – we have to get it right,” Mr Soe Thein said.”

Myanmar Investment Conference in Naypyidaw Sept. 12-13 Reply

Euro Money claims it’s the best attended conference they’ve organized in 42 years.

Speakers represent a good cross-section of those doing business in Myanmar:

• Alisher Ali, Chairman, Silk Road Finance
• Neeraj Swaroop, Regional Chief Executive Officer, South East Asia, Standard Chartered Bank
• Ma Cherry Trivedi, Managing Director, Myanmar Operations, New Crossroads Asia
• Serge Pun, Executive Chairman, Yoma Strategic Holdings
• Kevin Murphy, Senior Adviser, Andaman Capital Partners Limited
• Sutapa Amornvivat, Chief Economist and EVP, Economic Intelligence Center, Siam Commercial Bank
• Douglas Clayton, Chief Executive Officer, Leopard Capital
• Than Lwin, Deputy Chairman, KBZ Bank
• Tony Picon, Associate Director, Colliers International
• Khin Maung, Consultant, Ayeyarwady Bank
• Christopher Drew, Country Manager, Myanmar, Twinza Oil (Asia)
• Evelin Petkov, Country Head, Myanmar, Bagan Capital
• Meral Karasulu, Mission Chief, Myanmar, International Monetary Fund (IMF)
• Daniel Gaefke, Chief Executive Officer, Annex Power
• Anthony Muh, Executive Director and Chief Executive Asset Management, H.R.L. Morrison & Co.

Oil and gas auction postponed Reply

Reuters reports from the Oil and Gas summit ongoing in Yangon that the energy tender expected to be launched this month has been postponed due to high levels of interest from multinational firms.

They’ve asked the Myanmar government to make the tender more transparent and in line with international standards, so that they can participate properly. This is a very positive sign for international companies as it indicates the eagerness of the Myanmar government to cooperate in the opening up of its most coveted economic assets.

The multinationals which placed the request include: ConocoPhillips (COP.N), Hess Corp (HES.N), Royal Dutch Shell (RDSa.L), BP (BP.L), BG Group (BG.L) and Australia’s Woodside Petroleum (WPL.AX).

In August 2011, 18 onshore blocks were auctioned, of which 9 were taken by foreign firms.

This latest tender for 10 onshore and 10 offshore blocks is now likely to take place towards the end of the year. Shell is reported to be bidding on 8.

Official estimates of Myanmar’s natural gas reserves range from 11 trillion to 23 trillion cubic feet. The country currently produces around 1.475 billion cubic feet of natural gas per day and 19,600 barrels of crude oil.

Foreign companies encouraged to bid on energy reserves Reply

Reuters reports that Myanmar is to invite foreign companies to participate in the exploration of its oil and gas reserves.

Energy minister Than Htay says:

“The oil industry is a technology and capital intensive industry, but we are very poor so we need to seek foreign investment and we definitely need to collaborate with the international oil companies and need to seek their investment.”

Thailand’s PTT group invests $3 billion in Myanmar oil coal and power Reply

Reuters reports on the Thai state-owned energy giant’s planned investment.