President's column In this third column on emerging geographic frontiers, I want to focus on what may be the fastest developing country in the Eastern Hemisphere—politically, demographically, and certainly from the standpoint of upstream oil and gas. Myanmar, often referred to as Burma, has been largely isolated from the global economy for roughly 50 years due to oppressive military rule and extensive human rights violations. In 2012, under newly appointed president Thein Sein, Myanmar began to reform its foreign direct investment laws about the same time the US and the European Union began suspending sanctions. E&P industry players, large and small, have been watching and waiting for just such reformations and are now being attracted by the potential for huge growth in the existing gas production and the potential of the country’s 17 sedimentary basins, largely offshore and unexplored. Production History Myanmar is one of the world’s oldest producers of oil; it exported its first barrel of crude in 1853. Two oilfields discovered in 1887 and 1902 are still in production. Today, the country is a net importer of crude oil as 90% of production is gas, most of which is exported to Thailand. With a current production of 21,000 B/D, primarily from only two fields, the need and attraction of foreign investment is clear. The sedimentary basins are extremely underexplored and much of the available geological data were acquired with outdated technology. Estimates of reserves therefore vary widely. In 2012, the Ministry of Energy estimated offshore Myanmar crude oil reserves at roughly 540 million bbl and natural gas reserves at 65 to 72 Tcf. Myanmar Oil and Gas Enterprise (MOGE) was created in 1963, shortly after nationalization of the oil and gas industry, in an effort to consolidate the oversight and management of the various local and global efforts to increase reserves and production. However, foreign operators were not allowed to participate in the efforts until 1988, when generic foreign investment legislation was passed. The Ministry of Energy held its first formal licensing round for onshore blocks in 2011, but due to the existing sanctions, western companies were largely absent. More recently, 30 offshore blocks were offered for licensing in June 2013, including shallow- and deepwater blocks. Participation was prolific, including most major international oil companies. In fact, according to an energy ministry source, foreign companies’ tenders will be given priority, as they have the technology and expertise required to bring the complex and costly deepwater resources to market. Significantly, the government waived the initial requirement that foreign companies partner with a Myanmar-owned firm for the deepwater blocks, which increased the participation greatly. Results of the bidding are expected in early 2014 but one thing is clear – interest in finding and developing deepwater resources is widespread and intense.