Myanmar earns 67 pc income from Yadana and Yedagun gas projects
Reported by Staff Correspondent Edited by Win Htut
The Ministry of Energy announces that Myanmar government has realized 67 percent earnings from Yadana and Yedagun oil and gas projects to make it known to the public for the first time and there is a need for greater transparency in the implementation of oil and gas projects Myanmar.
The government received entitlements, royalties, value of shares, transport fee, transit fee, training and education funds and income taxes from the oil and gas projects. Myanmar Oil and Gas Enterprise (MOGE) benefited from 15% to 20% percent profits. The government earned over US 16 billion profits from Yadana and Yedagun natural gas projects from 2006-2007 to 2011-2012 fiscal years, according the report of the Ministry of Energy.
“There are two sources of incomes from selling oil and gas of Yadana and Yedagun projects. One source of income is before the return on investment and another is after the return on investment. Myanmar received 40% to 50% in the period before return on investment and 67% in the period after the return on investment,” said a senior geologist of the MOGE.
Yadana and Yedagun projects started the sales of oil and gas in 1998 and 2000. Yadana made profits in 2003-2004 fiscal years and Yedagun in 2006-2007 fiscal years.
Yadana and Yedagun projects have generated US 2.174 billion in 2006-2007, US 2.448 billion in 2007-2008, US 2.843 billion in 2008-2009, US 2.603 billion in 2009-2010, US 2.934 billion in 2010-2011 and US 3.611 billion in 2011-2012, totaling more than US 16 billion.
Also in 2013, Myanmar will get 60 percent from Shwe and Zawtika gas projects which will be imported to China and Thailand.
In Myanmar-China gas pipeline project, Myanmar will get US$ 6.905 billion a year as right of way for the pipeline being installed across the country and one dollar per ton of oil as transit fee for transportation passing through the country. The country will also get a portion of gas and oil for local consumption.
The announcement stated that oil and gas were imported to other countries as the country did not need the natural gas for local consumption in the past and foreign currencies were required to build infrastructure for the development of the nation and the public. Now, oil and gas that are explored later on is set for local consumption as a first priority and they will no longer be imported to other countries. Value-added products will be manufactured if the oil and natural gas are sufficient enough for local consumption.
Shares of companies in Yadana natural gas project
Shares of companies in Yedagun natural gas project
Shares of companies in Zawtika natural gas project