Bashneft International BV, a subsidiary of Russia’s largest producer of oil products Bashneft, has signed an agreement with state-run Myanmar Oil and Gas Enterprise (MOGE) for the distribution of the Block EP-4 oil well, the firm said.
Bashneft International BV is the operator of the project, holding a 90 percent stake, while Sun Apex Holdings Ltd from Myanmar holds the remaining 10 percent.
Under the Production Sharing Contract (PSC), the partners will implement a three-year geological exploration programme, which may be extended for another three-year period and includes seismic surveys and drilling of two exploration wells. Investments in the geological exploration programme shall total $38.3 million, Bashneft said. The signing bonus totals $4 million.
Block EP-4 with the area of 841 square kilolmetres is located in the Central Myanmar Basin. 2D seismic surveys covering 132 linear kilometres have been conducted at the site, and three prospecting wells have been drilled, which have uncovered six promising oil-bearing formations, the firm said.
Block EP-4 is located in an area with well-developed oil and gas transportation and processing infrastructure.
Bashneft gained the right to conclude the deal in October last year, when it won the Onshore Blocks Second Bidding Round conducted by the Ministry of Energy.
