MINISTERS U Maung Maung Ohn and U Aung Naing Oo replied to questions raised by reporters from AP, Reuters, the South China Morning Post, Straits Times, China Central Television (CCTV), the People’s Daily and Xinhua via videoconferencing on 21 April.
In his opening speech, Union Minister
U Maung Maung Ohn expressed his delightedness to meet them and spoke words of
thanks for his interest in the affairs of Myanmar.
He said he would give interview along
with Union Minister U Aung Naing Oo of the Ministry of Investment and Foreign
Economic Relations. The statement would be released after 12:15 pm on 21 April.
Generally, Myanmar receives significant development in the energy and economic
sectors. Oil and gas prices, triggered by the Russia-Ukraine conflict, have
risen sharply in the world today. The country faced poor development
infrastructure, decreasing Myanmar kyat prices, financial issues and other
impacts due to the attacks on power grids by the terrorists.
Nowadays, it needs to resolve the
energy to ensure the stability of the State. At the same time, the new economic
sanctions against Myanmar have been imposed recently. Most media also
highlighted that some foreign oil and gas companies left Myanmar. Therefore,
the two Union Ministers will reply to the questions during this interview.
Then, Union Minister U Aung Naing Oo
expressed his for meeting with the media and said he would discuss the current
economic status of Myanmar and the energy sector, especially the exchange rate
that the media are most interested in. The current government faces different
challenges, not like previous governments. Economic sanctions and unstable
conditions in some regions and states affect the economy.
However, the COVID-19 pandemic is
controlled to a certain extent. The state economy faced delays in economic
growth due to the pandemic, and now it is slower than before.
The current government is focusing on
providing the country with the electricity it currently needs. It is working to
stabilize the country’s economy while the energy sector is a priority. It also
tries to implement the projects in the energy sector as soon as possible. New projects
are also being invited.
The government will hold the election
in 2023 as planned despite the challenges. It will continue to strive for
economic stability and development in Myanmar. He also thanked the media for
their participation.
The reporter from the Straits Times
said that it was known that new investors are being sought in the oil and
natural gas sector. Currently, such a press release is not suitable for
investors. The reporter asked: why does it release such information? In reply
to the question, Union Minister U Aung Naing Oo said the instability of the
local currency kyat exchange rate harms some businesses. So, such a statement
was released on 4 April as part of the initial pace in order to stabilize the
currency exchange rate. The government has formed the foreign exchange
supervisory committee. After releasing the statement, it much affected the
businesses but triggered criticisms. Hence, the committee supervises the
release of information and the foreign currency exchange process. The committee
holds meetings three times a week to discuss currency exchange in the country
and seek answers for problems in coordination with relevant ministries and
those from the economic community. The committee held a meeting with
businesspersons led by UMFCCI the other day and helped them seek ways to solve
their problems. After the Central Bank of Myanmar has issued its announcement,
efforts are being made to ease the restrictions for local businesses as much as
possible. The committee held the meetings three times last week to adopt
decisions for exemption of some foreign-invested businesses, especially companies
in special economic zones, from the announcement of the Central Bank of
Myanmar.
Moreover, a decision was adopted to
grant the exemption for the foreign-invested businesspersons allowed by the
Myanmar Investment Commission from the announcement of CBM. So also, foreign
embassies, INGOs and NGOs will enjoy the exemption from the notification. As
those from the committee understand that the announcement may have some harmful
impacts, they solve the best solution by doing the daily analysis. As now is time
for the start of the reform period, efforts are being made to arrange the best
solution for all-inclusive persons.
In reply to the question of the
Straits Times about whether the exemption is for new investors, current
investors or not and will it need to apply for exemption and how to do so,
Union Minister U Aung Naing Oo said it includes new foreign investors and
current investors. Emphasis is placed on protecting these enterprises against
extra impacts triggered by the announcement of the CBM. The supervisory
committee always conducts the analyses during the reform process to have
progress and success.
The reporter from the Straits Times
asked: will the announcement be persistent for a period? Union Minister U Aung
Naing Oo replied that it depends on the situation of progress. It was an
announcement of CBM, and the committee formed by the government can give
guarantees for exemption depending on the situation. Depending on the stability
of the Myanmar currency kyat exchange rate, the prohibitions may be lifted.
With regard to the question of
stability of currency exchange rate, Union Minister U Aung Naing Oo said in
reviewing the instability of currency exchange rate, the exchange rate of US
dollar was set as K1,350 per dollar in February 2021. Last month, the currency
exchange rate reached K2,000-K2,050 per dollar. It can be seen that the
currency exchange rate was very high. Hence, the CBM released the announcement
for stabilizing the currency exchange rate.
The reporter from the AP news agency
asked whether the news on signing the agreement with the company of Finland for
the implementation of two power plants based on natural gas and solar power is
correct or not and asked about the performance of energy projects with China.
Union Minister U Aung Naing Oo said thereare many solar power projects. Some of
them are to be launched, and some are under construction. The Ministry of
Electricity and Energy signed the agreements on these projects. The majority of
projects are located in central Myanmar, and there are 13 solar power
electrification projects. The medium-scale hydropower projects will be
implemented to electrify the country at full capacity. Investors from China
submitted proposals for some projects in the previous government eras. But the
meetings are still in progress. He hoped that the Ministry of Electricity and
Energy would approve the implementation of the projects.
One more question was raised
regarding the departure of LNG projects and energy companies. Union Minister U
Aung Naing Oo said that it is right that LNG projects were suspended for the
unprecedented high prices. They were stopped for no cost-effectiveness in some
previous months. But a company submitted its offer to the government for
putting an investment in MIC for an LNG project. It is expected that the MIC
will approve it in the future. Electricity for foreign-invested projects will
be taken from LNG, and the projects will go on. If the prices are down, the
suspended LNG power plants will resume operations. There is no problem for the
departure of energy companies such as Petronas. And remaining share-holders
will take positions under the agreement of rules for operating the works.
Hence, oil and natural gas projects will still be operated.
Concerning the continuous
implementation of the project worth US$2.4 billion, Union Minister U Aung Naing
Oo said that as the MIC has approved the implementation of the project in
Metlinchaing of Ayeyawady Region, the work process will go ahead. It is a heavy
energy project.
Union Minister U Aung Naing Oo
replied to the question raised by the reporter from the Reuters news agency
about whether it can takeexemption from the currency exchange rate
notification. He said embassies from Thailand, Singapore and Japan, in addition
to the US and other western countries operating the invested works in Myanmar,
requested to take the exemption for their companies from the announcement. The
foreign exchange supervisory committee held the meeting. It adopted three
decisions for immunity for all embassies to Myanmar and all UN agencies, their
companies which have invested in the special economic zones, and all MIC
approved foreign-invested businesses. For instance, as PTT is an invested work
approved by MIC, it will have the chance of exemption.
As Myanmar wishes investment, it does
not have the purpose of harming the invested works. Hence, the MIC approved
works, and the works operated at Thilawa SEZ will have the exemption.
Union Minister U Aung Naing Oo also
replied to the question about the Myanmar-India direct payment process, saying
that both sides hold meetings. In contrast, the CBM will continuously take
responsibility for the coordination sector.
He also answered the question of
whether the lessening of electricity is based on the high price of LNG and the
blowing up of terrorists on national grids or not and how to take action. He
said the high LNG price is one of the points for lessening electricity. Some LNG
plants suspended operations.
For further points, the towers were
broken down. So, the government is still repairing the towers. On the other
hand, solar energy power plants are being implemented. One more way is being
sought to take natural gas from neighbouring countries.
Regarding the question on the
currency exchange rate and export items, Union Minister U Aung Naing Oo said
exporters are difficult in foreign exchange transactions and Myanmar kyat and
taking out Myanmar kyat from banks. Due to the instability of the currency
exchange rate, they are difficult to operate their businesses. Hence, the CBM
set a rate for ensuring the smooth process of these businesses.
But some exporters committed
criticism. Accordingly, the meetings are held three times a week to review the
work processes. Efforts are made to lessen the worse impacts on businesses.
To ensure a smooth process, the
standard operating procedures-SOP will be released this week. If so, they will
do their businesses smoothly.
In reply to the questions raised by
AP News Agency: Does Myanmar face a shortage of natural gas or fuel due to the
withdrawal of foreign companies to end a joint venture with Myanmar? How
obvious is the problem? How will the State Administration Council manage it?
Union Minister U Maung Maung Ohn said some foreign investors ended the joint
venture with Myanmar and the country currently faces a shortage of natural gas
and fuel. The rumour spreading on a social network that there is a fuel
shortage in the Thilawa oil storage tank terminal is false information. The
country’sstocks held 45 million gallons of petrol and 70 million gallons of
diesel. Two fuel oil tankers have docked at the Depot, and fuel oil cannot be
unloaded intofuel storage tanks due to the Thingyan holidays.
There would be no shortage of fuel
stocks. The State Administration Council arranges to make a Production Sharing
Contract-PSC with local/foreign oil companies to explore oil and gas from 21
vacant onshore and 21 offshore blocks, and the international bids are also invited
with the permission of SAC.
The offshore gas drilling projects
are being conducted by making PSC contracts with foreign oil companies such as
Yadana, Yedagun, Shwe and Zawtika projects.
The Yadana gas field produced
21990.90 million cubic feet in December 2021 and transmitted to local and
foreign countries during the Partial Shutdown period. The
production/transmission of gas was suspended between 31 December 2021 and 2
January 2022. It currently transmits to Thailand as usual.
The Yedagun gas field daily exports
to Thailand via 24 inches pipelines starting in 2000. The Shwe gas field in the
Rakhine offshore basin has transmitted gas to China since July 2013, and the
project will be ended in 2043.
The field yielded 16,092.99 million
cubic feet in December 2021. The Zawtika project in the Gulf of Mottama has
beentransmitted gas to China starting in August 2014. It produced 9,140.88
million cubic feet in December 2021.
(TO BE CONTINUED)O BE CONTINUED)
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