Oil production in Myanmar derives from onshore fields
located in a series of very old producing basins that run north to south
through the centre of the country. Output peaked in 1979 and, despite
introduction of foreign companies, no significant jumps in output are
expected after a surge in 2003.
Onshore gas production has been constrained by the small market. There
is considerable potential for onshore gas in the south but little chance
this will be realised in the next decade. However offshore gas
production began in 1999 with most gas exported to Thailand. There is
potential for output growth with new projects being planned, delivered
to the main export market of Thailand, whilst China and India are both
possible new outlets.
poor economy of Myanmar has kept consumption of both oil and gas at low
levels although both oil and gas consumption were rising up to 2005. New
offshore gas production has led to the creation of new domestic markets
for gas since 2005, whilst oil consumption has declined slowly.
The country imports small quantities of oil and no major consumption
growth is expected. Gas exports, which began in 1999, will continue to
rise to a plateau in around 2013.