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Roundup: More foreign companies seek oil, gas exploration in Myanmar

Xinhua, February 18, 2015 Adjust font size:

Two more foreign companies have joined exploration and production of oil and gas in Myanmar's offshore areas recently, signifying more new foreign investment into the sector in the country this year.

Under the production sharing contracts with the state run Myanmar Oil and Gas Enterprise (MOGE), the exploration and production will be conducted by Shell Myanmar Energy Pte Ltd and Mitsui Oil Exploration Co Ltd Group at three blocks -- AD-9 and AD-11 blocks off Rakhine coast as well as MD-5 blocks off Taninthayi coast.

MOGE will get 61 million U.S. dollars for signature bonus and 300,000 dollars for data fee. The foreign companies will spend 1. 215 million dollars during two years' observation period and six years' exploration period for the three blocks.

The companies will also conduct environmental and social impact assessments during the period.

In December last year, Myanmar signed similar contracts with three Indian companies and a Singapore-based company to explore oil and gas in the Mottama offshore blocks .

The three Indian companies, the Oil India Ltd, Mercator Petroleum Ltd and Oilmax Energy Pvt Ltd, will make the engagement at the M-4 block and Taninthayi offshore YEB block at the expense of 120.9 million dollars in one year observation period and six months exploration period.

Similarly, the Mottama offshore M-8 block will be explored by the Singapore-based Berlanga Myanmar Pte Ltd at a cost of 153 million dollars on a one-year feasibility study and six-year operation.

Myanmar produced 6.1 million barrels of crude oil and 13.162 billion cubic meters natural gas in the fiscal year of 2013-14, according to Central Statistical Organization.

Myanmar will see an influx of foreign companies following the release of its oil and gas resources to the international market with many international firms looking for local agents and partners and setting up operation in Myanmar.

Meanwhile, Aung Thinkha test well at Mottama offshore block M-3 where the PTTEP of Thailand is engaged in joint venture with MOGE in drilling was estimated to yield 2.83 million cubic meters of gas per day.

PTTEP will also carry out geotechnical site investigation survey at M-9 block.

There are mainly three offshore natural gas fields in Myanmar -- Yadana, Yetagun and Shwe.

Myanmar has abundance of natural gas resources especially in the offshore areas.

Foreign oil companies, engaged in oil and gas exploration and production in Myanmar, are from Australia, Britain, Canada, China, Indonesia, India, South Korea, Malaysia, Russia, Singapore, Thailand and Vietnam.

Foreign investment in Myanmar's oil and gas sector amounted to 16.992 billion dollars as of the end of 2014 accounting for 32.16 percent of the total and ranking the second largest sector in the country's foreign investment line-up after electric power, statistics show. Endi