Italian exploration and production major Eni is joining Chevron, Woodside, Ophir Energy and India's Reliance Industries, in gearing up for exploration activities offshore Myanmar after signing two production sharing contracts (PSCs).
All the companies have been awarded PSCs off the country, the latest awards being to Eni and Reliance, announced March 31, following the 2013 International Bid Round held by Myanmar last year.
The round has sparked a string of new seismic activity offshore Myanmar, which has been largely underexplored due to decades of international sanction-driven isolation.
Image: Eni's CEO Claudio Descalzi.
The 2013 round saw 20 preferred bidders announced, with PSCs starting to be announced late 2014 and early 2015, including Australia's Woodside Energy and Chevron subsidiary Unocal Myanmar Offshore last week and independent Ophir Energy in January.
Eni has signed PSCs for blocks MD-02 and MD-04, to be operated by Eni, holding 80% equity, under a joint venture with Petrovietnam Exploration Production Corp. (20%).
Block MD-2 is in the southern part of the Bay of Bengal, in the Rakhine basin, about 135km from the coast, west of the Yadana field, one of Myanmar's major offshore producing fields. The block covers 10,330sq km in 500-2400m water depth.
Block MD-4 is in the Moattama-South Andaman basin, about 230km from the coast, west of the Yetagun gas field. The block covers 5900sq km in 1500-2200m water depth.
The contracts for the two blocks foresee a study period of two years, followed by an exploration period of six years, subdivided in three phases.
Eni entered Myanmar in July 2014, signing the PSCs for the exploration of two onshore Blocks, RSF-5 and PSC-K, located in the prolific Salin basin and the unexplored Pegu Yoma-Sittaung basin, respectively.
"With the contracts signed today, we have further expanded our exploration portfolio through new and important opportunities, which allow Eni to strengthen its presence in a Country with a significant potential and a rapidly developing economy. Today we become one of the largest operators in the exploration activities in Myanmar, taking a further step in our organic growth strategy in Southeast Asia where we are already present in China, Vietnam and Indonesia," Eni’s CEO Claudio Descalzi said.
Other wins
Chevron subsidiary Unocal Myanmar Offshore Co. will explore the Rakhine basin with Myanmar Oil and Gas Enterprise (MOGE). The new PSC area, Block A5, lies 200km offshore northwest of Yangon and covers more than 10600sq km. Unocal Myanmar will be the operator of the block with 99% interest. Royal Marine Engineering Co., a Myanmar company, will hold the remaining interest in the block.
India's Reliance Industries and MOGE signed PSCs two offshore blocks (M17 and M18). Reliance will operate the blocks with a 96% participating interest. United National Resources Development Services (UNRD), a Myanmar company, will hold the remaining interest. Both the blocks are offshore in the Tanintharyi basin of Myanmar in 3000ft water depth and together encompass total area of 27,600sq km.
Australia's Woodside signed PSCs for offshore blocks AD-2, AD-5, A-4 and A-7. Located in the southern Rakhine basin, for offshore blocks AD-5 and A-7, Woodside will hold operated equity interests of 55% and 45% respectively. Non-operating interests are held by BG Exploration and Production (Myanmar), and Myanmar Petroleum Exploration and Production Co. Blocks AD-2 and A-4 also located in the northern Rakhine Basin, Woodside will hold non-operated interests of 45% each, while BG is the operator of both the blocks. Myanmar Petroleum will hold non-operating interest in block A-4.
UK-based Ophir won 95% operated interest in deepwater Block AD-03 offshore Myanmar. The block, which is subject to approval, measures approximately 10,000sq km in size and is located in the Rakhine basin, on trend with the multi-TCF Shwe gas field. The initial exploration period will see Ophir re-process existing 2D seismic and acquire 3D seismic data, Ophir said.
Read more:
Myanmar - southeast Asia's next frontier
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