May 10, 2011

Japanese and Singapore companies form joint venture to explore oil and gas in Kachin State

Two Singapore companies, Silver Wave Energy Pte Ltd and BFI Holding Pte Ltd, have formed a joint venture with Star Field Corporation and Star Holding Corporation of Japan to explore oil and gas in Myanmar’s northern Kachin State.

The joint venture company, Silver Wave Exploration & Production, said in a press statement last week that it had secured the exclusive exploration licence rights with a production sharing contract (PSC) from the state-owned Myanma Oil and Gas Enterprise (MOGE) for all oil-prospecting acquisitions at Block B (B2).

The 19,066-square-kilometre block is located in the Hukaung Valley in Kachin State.

In 2007, Silver Wave Energy was one of nine foreign oil companies involved in 16 onshore blocks to explore, reactivate, enhance recover and produce oil.

Having invested in research and the foundations for oil production in Block B (B2), Silver Wave Exploration & Production has now signed a PSC to start exploration.

The joint venture partners will start drilling operations in Block B (B2) this year with an initial investment budget of US$100 million, the press release said.

Silver Wave’s press statement said the project was expected to be the first of many such ventures by Silver Wave Exploration and Production, which is currently in discussions with Sudan, Guinea-Conakry, Indonesia and Iraq for similar projects.

Most of the joint venture partners have close links with energy-related businesses. Silver Wave Energy provides energy project management capabilities to companies involved in energy research, prospecting, exploration, recovery and enhancement.

BFI Holding is a privately owned company which focuses on development projects in the Middle East and Africa.

Japan-based Star Field Corporation provides technical and engineering support to large-scale projects in the region for construction, infrastructure and energy exploration projects.

Star Holding Corporation provides equity and fund management consultancy and services for big-scale development projects involving large amounts of capital and funding requirements for energy-related projects.

Source: Myanmar Times