Myanmar election increases risk of exploration delays for upstream sector

Preliminary results suggest a victory for Aung San Suu Kyi's National League for Democracy (NLD).  A diverse parliament is likely to emerge, but regardless of who the winner is, the military retains significant influence.  Oil and gas companies should prepare for delays to proposed reforms and project approvals in the near term.  Many of the winners of the 2013 offshore bid round have an exploration portfolio consisting of countries with a lower risk profile.  However, the level of risk exposure for investors will decrease longer-term as the NLD improves the quality and independence of Myanmar's judiciary.