Union Ministers U Maung Maung Ohn, U Aung Naing Oo give virtual interview to foreign news agencies

Union Ministers U Maung Maung Ohn, U Aung Naing Oo give virtual interview to foreign news agencies

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.

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