Burma Clarifies Conditions For Oil, Gas Investment

Burma’s government has released details on the new Foreign Direct Investment Law’s requirements for overseas oil and gas sector investors, reports Argus, an energy industry publication. The government clarified the law at last month’s Myanmar Oil and Gas Summit. Foreign firms will be able to own 100 percent stakes in projects for exploring, accessing and transporting and processing oil and gas, and there is no minimum investment value. The law includes guarantees against nationalization and tax holidays. Foreign investors are required to sign production sharing contracts with Burmese firms, but there is no requirement on how much control should be granted to local companies. There is a 40 to 50 percent capital gains tax on asset transfers.