Feb 10, 2015

Shell Inks Offshore Exploration Contracts

Shell and its partner Mitsui Oil Exploration Co Ltd group (MOECO) have signed exploration and production sharing contracts (PSCs) with Myanma Oil and Gas Enterprise (MOGE) for three deep-water blocks, the Netherlands-based oil giant said. The step marks Shell’s return to upstream operations in Myanmar. Under the agreements, Shell will assess the potential of deep-water blocks AD-9 and AD-11 (Rakhine Basin) and MD-5 (Tanintaryi Basin). The three blocks together cover some 21,000 square kilometres. They are located approximately 300 kilometres offshore in water depths ranging from 1,800 to 2,700 metres. Shell is the operator and has a 90 percent interest in the three contracts with MOECO holding the remaining 10 percent. Shell said it will use leading deep-water exploration technologies including advanced tools for acquiring, processing and interpreting seismic and other geophysical data to “improve understanding” of the potential resources. “The three blocks offer an exciting frontier exploration opportunity to apply the advanced deep-water technical capabilities we have built up around the world over the past three decades. “I am delighted that we have the opportunity to explore and we look forward to helping meet Myanmar’s aspiration to unlock and develop its energy resources,” Graeme Smith, VP Exploration Asia and Australia at Royal Dutch Shell, said. “Exploration is a pivotal step in the development of Myanmar’s energy sector, an industry that plays a key role in the economic growth of the country,” said U Zay Yar Aung, union minister for energy. “We look forward to partnering with Shell and MOECO, who will bring international standards and expertise to an expanding offshore industry.” Source: Myanmar Business Today