Myanmar: SIM to raise up to $60m for offshore supply base investment

Photo: Juliet Shwe Gaung. Facing the Yangon River from Kyee Myindaing Kanner road.

Myanmar based SIM Co Ltd, which recently got an approval from the Myanmar Investment Commission (MIC) to operate an offshore supply base is looking to raise up to $60 million for this investment – through a mix of equity sale and debt funding.

“Our estimate for the capital expenditure is around $60 million for the base to be operational,” said Tin Min Htut, executive director of Trust Venture Partners, the firm providing financial advisory services to SIM.

The offshore supply base project is to be located in Nga Yoke Kaung town, Ngaputaw township in the Ayeyarwaddy region. This will be the second such project in the country. The first offshore supply base is located in Thaketa, which is not considered a full-fledged platform due to the water depth and a need for upgrades.

During an interaction with DEALSTREETASIA, Htut said that the company is seeking to raise $20 million through debt and $40 million through equity investments.

The first phase of the development will use 49 acre out of the 184 acres that the company has for the project.

The remaining 135 acres will be further developed through a JV, for which they are currently seeking a joint venture partnerships, said Htut.

SIM is open to both foreign and local partner for “the operation and long term strategic partnership” in the project.

The company is led by two founders, Nay Lynn Oo and Aung Min Han. Han is also the CEO of Yangon based Ever Flow River Group (EFR), an integrated logistics service provider operating in Myanmar for over 20 years.

EFR has diversified into other industries such as trading, plantation, manufacturing, hospitality and tourism.

SIM has been exploring a number of sources including banks, foreign operators as well as strategic investors for the offshore project investment. “We are approaching some of the private equity firms as well. One of the private equity firms has expressed interest and we have initiated talks,” revealed Htut.

Offshore exploration and production majors in the area include Total and PTTEP , which are located at the gulf of Mottama and are supplying to the country through the Thaketa offshore supply base and those from Thailand or Singapore.

With the availability of the offshore supply base in Nga Yoke Kaung, which is well within 200 miles range from the oil and gas sites located around Bay of Bengal and Mottama gulf, the time taken to ship the supplies can be reduced to one day compared to the time take of up to four days it could take to come from Thailand or Singapore.

In the same meeting of MIC, Myint & Associates Offshore Supply Base Limited, a subsidiary of local company, Myint & Associates Co Ltd, a member of MPRL E&P Group of Companies was also granted permission for a K45,955 million ($33.7 million) investment for a 29.95 acres of land in Nga Yoke Kaung town.

MPRL E&P has conducted exploration work in offshore block A-6. Their first gas discovery was in 2012 and together with its partners, Woodside and Total, in the same block, made a second gas discovery in January 2016.

Also Read:

Myanmar Dealbook: Puma Energy’s $100m fuel storage facility; Ball Corp to start production at Thilawa SEZ

Myanmar approves $2.6b refinery project of Longwin Global Petro JV

Myanmar: MPRL finds gas through Shwe Yee Htun -1 well, offshore A-6

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.