Revenue from the Myanmar oil and gas sector will decline in fiscal 2020-21 as a result of COVID-19.This is because global oil prices have fallen, leading to decline in gas prices and production at four of Myanmar’s offshore gas projects and numerous other fields onshore. The decline also comes at a time when production levels at existing wells are decreasing and tenders for drilling at new gas fields have stalled.
Income from the natural resources sector contributes to around 10.9 percent of Myanmar’s total income, making it a major source of revenue for the country. In 2019-20, income from the Myanmar oil and gas sector totalled K2 trillion. This however, was down from a high of K2.3 trillion in 2018-19 as a result of declining production levels.
Tax revenues from the natural gas sector have also decreased, falling to K169 billion in fiscal 2019-20 due to lower production revenue from the Zawtika offshore project and lower exchange rate. The forecast amount had been K234 billion. The ministry expects tax revenues from the gas sector to amount to K334 billion in the coming fiscal year.
Source: Myanmar Times