Financing of Oil Companies in Burma
The objective of this research project is to identify the financial institutions that are involved in financing the companies undertaking two major oil and gas projects in Burma. These projects are known as Block M and the Shwe Reserve (including the Arakan-Yunnan Pipeline).
The consortium companies undertaking the Block M project have a production sharing contract with Burma’s 100% state-owned Myanmar Oil & Gas Enterprise (Burma). The consortium includes Chinese and Singaporean companies: CNOOC (China), CNPC (China) and Golden Aaron (Singapore).
The consortium companies undertaking the Shwe Reserve project initially included Daewoo International (South Korea) that signed a production sharing contract with MOGE for these blocks. Later on other companies joined in the investment in the Shwe Reserve project: ONGC Videsh (India), Korea Gas Corporation, (South Korea) and Gas Authority of India (India). CNUOC (a subsidiary of CNPC) signed a contract for the construction of the Arakan-Yunnan pipeline and the export of the gas with the Shwe consortium partners.
This research project sets out the relationship of the financial institutions to the consortium companies of these projects through shareholdings, loans or through the underwriting or participation in share and bond issuances.
Current shareholdings of financial institutions in the consortium companies represent an indirect investment by the institutions in those companies. In most cases the shareholdings represent funds that are invested on behalf of third parties via investment funds. As fund managers the financial institutions have a relationship with the consortium companies but they are not directly accountable for the eventual investment of funds in the gas and oil projects in Burma by the consortium companies.
The provision of loans by financial institutions or the underwriting of bond and share issuances for the consortium companies represent direct investments in those companies. The
The consortium companies undertaking the Block M project have a production sharing contract with Burma’s 100% state-owned Myanmar Oil & Gas Enterprise (Burma). The consortium includes Chinese and Singaporean companies: CNOOC (China), CNPC (China) and Golden Aaron (Singapore).
The consortium companies undertaking the Shwe Reserve project initially included Daewoo International (South Korea) that signed a production sharing contract with MOGE for these blocks. Later on other companies joined in the investment in the Shwe Reserve project: ONGC Videsh (India), Korea Gas Corporation, (South Korea) and Gas Authority of India (India). CNUOC (a subsidiary of CNPC) signed a contract for the construction of the Arakan-Yunnan pipeline and the export of the gas with the Shwe consortium partners.
This research project sets out the relationship of the financial institutions to the consortium companies of these projects through shareholdings, loans or through the underwriting or participation in share and bond issuances.
Current shareholdings of financial institutions in the consortium companies represent an indirect investment by the institutions in those companies. In most cases the shareholdings represent funds that are invested on behalf of third parties via investment funds. As fund managers the financial institutions have a relationship with the consortium companies but they are not directly accountable for the eventual investment of funds in the gas and oil projects in Burma by the consortium companies.
The provision of loans by financial institutions or the underwriting of bond and share issuances for the consortium companies represent direct investments in those companies. The