By Randy Fabi
YANGON (Reuters) - Western companies want more concrete political and economic reforms before they invest in Myanmar's oil and gas sector, giving Asian and Pacific rivals an edge in competing to access its untapped resources, company officials said on Wednesday.
Myanmar has opened up to the outside world with astonishing speed since a civilian government took office last year after five decades of military rule.
The prospect of the end of Western sanctions has prompted a surge of interest but actual investment has yet to flood in.
"We are not in any hurry. We are watching closely and making the necessary contacts but we will go in when we are comfortable. There is more than enough gas to be explored," said a senior official with a major Western oil company, who asked not to be named.
Myanmar, one of the world's oldest oil producers which began exporting in 1853, has been moving fast to implement political and economic reforms, promising to float its currency and proposing major revisions to its foreign investment law.
Sunday's parliamentary by-elections, which will be contested by opposition leader Aung San Suu Kyi, are seen as a critical gauge for investors of the government's reform pledges.
If they are free and fair, diplomats say more sanctions are likely to be withdrawn as early as the end of April.
Human rights group, however, have advised oil companies not to rush into Myanmar, considered one of the world's most graft-ridden countries, since reforms can easily be reversed.
U.S. sanctions ban all domestic companies from new investments in Myanmar, while Europe has restrictions on domestic support for the Southeast Asian country's timber and mining industries but not energy.
"The big Western oil companies want more transparency before investing for the long term," said Marc Nickles, Asia-Pacific representative for European oil firm Perenco Holdings, on the sidelines of Myanmar's first major oil industry gathering in years.
"This is a high risk, high reward country and you have to be able to weather the changes," he added.
If reforms continue at the same quick pace, Perenco may participate in the next oil and gas bidding round. This is expected to be launched later this year after the government completes the process, now under way, of awarding nine onshore blocks to seven foreign oil firms.
Unlike their Western counterparts, Asian oil companies from China and Japan to Malaysia and Thailand were eager to expand their operations in Myanmar, after years of investment.
The last oil and gas tender was dominated by Asian oil firms, such as Thailand's PTT Exploration and Production and Malaysia's Petronas.
"I assure you that there has never been a better time for you to come to Myanmar and ... search for opportunities in the oil and gas sectors," said Energy Minister U Than Htay in the conference's opening address.
"At the end of the first international bidding round, we will be launching another international bidding round for onshore blocks in due course. At this moment, we have not decided which onshore blocks to include," he added.
Foreign oil companies awarded an oil and gas block will need to have at least one domestic energy firm as a partner, the minister said.
Myanmar currently produces 19,600 barrels per day of crude oil and 1.475 billion cubic feet a day of natural gas, Htin Aung, director general of the Ministry of Energy's Energy Planning Department, said at the conference.
Other data outlined by Htin Aung put Myanmar's proven oil reserves at 104 million barrels onshore and another 35 million offshore. Proven natural gas reserves were pegged at 410 billion cubic feet onshore and 11 trillion offshore.
(Editing by Anthony Barker)
