While initially benefitting from the liberalisation of the country and the release of political prisoners, recent geopolitical tensions have made investment in Myanmar untenable, for the near term at least.
June 11, 2021
Asia - South East
South eastern Asia, bordering the Andaman Sea and the Bay of Bengal, between Bangladesh and Thailand.
Companies are required to sign production sharing contracts (PSCs) with Myanmar Oil and Gas Enterprise (MOGE), which is a 100% state-owned enterprise under the Ministry of Electricity and Energy (MOEE), in order to undertake petroleum exploration and production activities in Myanmar. As the investment in the oil and gas business is capital-intensive, several foreign oil and gas companies sometimes jointly invest in the PSC, and the majority stakeholder acts as the “operator.”
Myanmar’s economic reforms since 2011 have created opportunities for investment throughout the country. With a rich natural resource base, a young labour force, and prime geographic location, Myanmar has tremendous economic potential. Property rights for large plots of land for investment commonly are disputed because ownership is not well established, particularly following a half-century of military expropriations. It is not uncommon for foreign firms to face complaints from local communities about inadequate consultation and compensation regarding land.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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