Quarterly Business Magazine

Myanmar Ministry of Energy back in the fuel oil business

14 top international petrochemical companies have bought tender documents
Posted :
Tuesday, November 17, 2015

There are news that 14 of the world's major oil and gas companies have bought tender documents from the Ministry of Energy with the intention of forming joint ventures or partnerships. The ministry has been inviting them since July of this year, to once again enter the fuel oil trading and distribution business. A senir official from the Myanma Petroleum Products Enterprise has been quoted as " those that bought the tender documents are all well known majors; they haven't submitted the documents as of yet."

Among the 14, some are already involved in Myanmar, such as PTT of Thailand and Daewoo of South Korea. They are now performing due diligence and feasibility studies within Myanmar. The sale of tender documents will close on the 20th of November[ this month] but it is still not known when the tender appraisal will commence, the official continued. He further stated that a joint venture agreement will be signed with the winner of the tender in March 2016 and actual trading could start in midyear.

The ministry aims to directly import and distribute high quality fuel oils from reputable companies and thus is making preparations with deliberation since fuel is an important commodity. With a joint venture bypassing redistributors, there would be significantly lower fuel prices as well as a better guarantee of quality.

In 2011, the Ministry of Energy privatized 261 filling stations and took a hiatus from the domestic trading and distribution. It has now decided to enter the market again.

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