Italian oil and gas producer Eni has signed two production sharing contracts (PSC) for offshore blocks MD-02 and MD-04 in Naypyitaw, the firm said. Eni won the blocks in the competitive international offshore bidding round in 2013.
The joint venture is between Eni, which will be the operator with an 80 percent participating interest through Eni Myanmar BV, and PetroVietnam Exploration Production Corporation Limited, which holds the rest stake.
MD-2 block is located in the southern part of the Bay of Bengal, in the Rakhine Basin, approximately 135 kilometres from the coast, west of the Yadana field, the major offshore discovery in Myanmar. The block covers an area of 10,330 square kilometres in water depths ranging from 500 to 2,400 metres.
MD-4 Block is located in the Moattama-South Andaman Basin, approximately 230 kilometres from the coast, west of the Yetagun gas field. The block covers an area of 5,900 square kilometres in water depths ranging from 1,500 to 2,200 metres.
“With the contracts signed, we have further expanded our exploration portfolio through new and important opportunities, which allow Eni to strengthen its presence in a Country with a significant potential and a rapidly developing economy.
“Today we become one of the largest operators in the exploration activities in Myanmar, taking a further step in our organic growth strategy in Southeast Asia where we are already present in China, Vietnam and Indonesia,” Eni’s CEO Claudio Descalzi said.
The contracts for the two blocks foresee a study period of two years, followed by an exploration period of six years, subdivided in three phases.
Eni entered Myanmar in July 2014, signing PSCs for the exploration of two onshore Blocks, RSF-5 and PSC-K, located in the Salin Basin and the unexplored Pegu Yoma-Sittaung Basin, respectively.
