ONGC Videsh signs production sharing contracts in Myanmar

Indian oil company ONGC Videsh announced it signed two production sharing contracts for onshore exploration with partners in Myanmar.

The company said it signed the production sharing contracts in Naypyitaw with the National Oil Co. of Myanmar and other local partners.

Two onshore blocks were awarded as part of Myanmar's bidding round launched last year by the government. ONGC offered no estimate of the reserve potential at the two blocks, B-22 and EP-3.

The U.S. Energy Information Administration says crude oil production has increased from 13,000 barrels per day in 2000 to 21,000 bpd in 2013, though the country is still a net importer of crude oil. In terms of natural gas, EIA said Myanmar's production increased dramatically from 61 billion cubic feet in 1999 to 416 billion cubic feet in 2012.

The Indian company said Monday it has an established presence in Myanmar's offshore gas sector, were production started in July 2013.

International companies started investing more in Myanmar after general elections ended a period of military rule in 2010. Human rights groups say economic pressure, not rewards, is needed to maintain the momentum of reforms.