Taiwan bids for oil, gas security in Myanmar deal
Taiwanese firm CPC hopes agreement with Sinopec to explore for resources in under-tapped nation will bolster stability of supplies
Taiwan's state-owned oil firm CPC Corp, one of the island's two major fuel providers, expects a more stable supply of resources from its April agreement with a mainland Chinese peer to explore in under-tapped Myanmar.
CPC's agreement to buy a 30 per cent stake in a Myanmar gas and oil field from mainland China's state-run Sinopec Group will "increase stability of supplies," the Taiwanese provider said in a statement.
Taiwan's industry, the backbone of its economy, depends on fuel imports as nuclear power and alternative energy contribute just a fifth of its total energy needs. Taiwan is always looking for new energy sources offshore to ensure supply and control prices.
Three of six wells at Sinopec's central Myanmar field, known as Block D, have shown potential for oil or gas, CPC said in a statement following the April 24 agreement.
"Everyone wants to explore in that area, so CPC might profit from the oil or gas, but that's a side issue," said Liu Chia-jen, petrochemicals analyst with KGI Securities in Taiwan. "CPC needs to lock in its energy supplies."
It is unclear how much any single firm can extract from Myanmar, a normally closed-off country that is just now slowly opening to foreign investment. Sinopec has had rights to Block D since 2004, and today at least seven countries are exploring for oil or gas around Myanmar.