The threat from the Chinese dragon seems to have been overwhelmed by the Indian elephant in the oil and gas sector as seven domestic companies including ONGC and Oil India ltd (OIl) are in the fray as potential bidders for Myanmar's onshore gas blocks which are coming up for auction, while only one company from China features in the list of 59 bidders which have been short listed by the South-east Asian country.
Myanmar which is sandwiched between India and China, opened up its economy after the long ruling military junta's rule came to an end there in 2012 and has been aggressively marketing itself as a potential business destination in the South Asian region.
The country has $75 billion worth of gas reserves and earlier this year had invited expressions of interest (EoIs) from several global entities for exploring its onshore and offshore fields. After evaluating the applications, Myanmar's Ministry of Energy has short listed 59 companies as potential bidders for its 30 onshore gas blocks. Seven Indian companies comprising mainly of ONGC's overseas arm ONGC Videsh ltd (OVl), OIl, Gujarat Natural Resources ltd and Cairn India ltd - are among the short listed companies.At the same time only one Chinese company namely SIPC Myanmar Petroleum Company ltd has been selected among the 59 entities.
Interestingly even Pakistan seems to have taken a lead over China here as its three companies namely - Zaver Petroleum Corporation ltd, Ocean Pakistan ltd and Petroleum Exploration Pvt ltd - have been selected among the potential bidders. According to information available with The Pioneer, Myanmar's Ministry of Energy has described the short listed companies as having "good technological competency, financial capability and experience in petroleum exploration".
India, sources said, is on the radar of the South-east Asian nation and it is keen on seeking New Delhi's greater cooperation in developing socio-economic ties especially after the end of the military rule there has signalled the beginning of a new era there. In fact India is second in the list with seven of its companies having been selected, while Australia tops the list of bidders as 12 of its companies have been short listed by Myanmar for exploiting its gas fields.
Other major players which feature in the list include US' Esso, Malaysia's Petronas and Japan's Mitsui Oil Exploration Co ltd and JX Nippon Oil and Gas Exploration Corporation among others. While ONGC officials confirmed that they have been shortlisted by the Myanmar Government, OIl officials said that they would like to conduct the due diligence of the onshore fields which have been put on offer by Myanmar.
Cairn India, controlled by Anil Agarwal-led Vedanta Resources, has cash reserves of $3 billion. The management had indicated they were on the lookout for assets in the subcontinent.