Home MMBIZ News PTTEP to Pour in $72 Million for Myanmar Onshore Oil Block

PTTEP to Pour in $72 Million for Myanmar Onshore Oil Block

A subsidiary of Thai energy giant PTTEP and its joint venture partners have signed a Production Sharing Contract (PSC) with the state-run Myanma Oil and Gas Enterprise (MOGE) for the exploration and production rights of an onshore block in Myanmar.

PTTEP plans to conduct the 2D and 3D seismic surveys and drilling campaign of four exploration wells for the first three years period with the minimum investment commitment of approximately $72 million, it said in a statement.

“This investment in Myanmar is a significant operational progress in line with PTTEP long term growth direction to explore the high potential areas,” Tevin Vongvanich, president and CEO of PTTEP, said.

“If this exploration yields a successful result, it will thus secure both Thailand and Myanmar energy supply in the future,” he said.

The joint venture partners include PTTEP’s wholly-owned subsidiary PTTEP SA, the operator with 85 percent share in the block, Palang Sophon Offshore Pte Ltd with 10 percent and Win Precious Resources Pte Ltd (WPR) with 5 percent share.

The contract was signed for MOGE 3 (Padaukpin-Natmi area) block, which covers 1,217 square kilometres, and is located in central Myanmar, adjacent to the west of the Ayearwaddy River.

PTTEP and the joint venture partners won this onshore exploration block opened for the 2013 Myanmar Onshore Blocks 2nd Bidding Round.

Apart from MOGE 3, PTTEP has invested in six other petroleum exploration blocks in Myanmar – two onshore blocks PSC G and EP 2 and four offshore blocks M3, M11, MD-7 and MD-8.

The firm’s production projects in Myanmar are Yadana, Yetagun and its recent Zawtika. Currently, the Zawtika project is producing natural gas at 300 million standard cubic feet per day (MMSCFD) equivalent 10 percent of the company’s production, PTTEP said.

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