Apr 9, 2012

Trilateral contract reached for gas exploration in Myanmar

A trilateral contract among Myanmar government, a Malaysian and a Myanmar private companies have been reached on exploration of gas on two inland blocks in Myanmar, official media reported Friday.

The production sharing contract was signed in Nay Pyi Taw among Myanmar's state-run Oil and Gas Enterprise (MOGE), Malaysia's Petronas Carigali Myanmar Inc. and Myanmar private company of UNOG Pte Ltd. on exploration of two inland blocks RSF-2 in Tuywintaung Myaingtaung region and RSF-3 in Gwaycho Ngashantaung region, said the New Light of Myanmar.

It is the third such contract reached after Myanmar's Energy Ministry put international tenders for exploration with 18 inland blocks over the past nine months.

The ministry has granted seven Myanmar national-owned companies to do joint venture business with international oil companies on nine blocks out of the 18 and two contracts have been inked, the report said.

International oil companies include those from Indonesia, Thailand, France, Malaysia, Russia, China and India.

Myanmar has abundance of natural gas resources especially in the offshore areas. With three main large offshore oil and gas fields and 19 onshore ones, Myanmar has proven recoverable reserve of 18.012 trillion cubic feet (TCF) out of 89.722 TCF's estimated reserve of offshore and onshore gas, experts said.

The country is also estimated to have 3.2 billion barrels of recoverable crude oil reserve, official statistics indicate.

The statistics also reveal that foreign investment in Myanmar's oil and gas sector had reached 13.815 billion U.S. dollars in 104 projects as of the end of November, 2011, accounting for 34.18 percent and standing the second in the country's foreign investment sectorally after electric power.

Other figures show that in 2009-10, Myanmar produced nearly 7 million barrels of crude oil and over 400 billion cubic-feet ( 11. 32 billion cubic-meters) of gas.

Source: Xinhua