Published On: Sun, Jun 10th, 2012

Trilateral Contract Inked on Onshore Gas Exploration in Myanmar

A trilateral contract among the Myanmar government, a domestic private company and a Singaporean firm was reached on exploring gas at an onshore block in Myanmar, official media reported Sunday.

Under the production sharing contract, signed among state-run Myanmar Oil and Gas Enterprise, Singapore’s Istech Energy EP-5 Pte Ltd and Myanmar private-owned Smart Technical Services Limited, exploration will be made onshore at block EP-5 in Inpin Tegyigon area.

It is the sixth contract of its kind reached after Myanmar’s Energy Ministry invited international tenders for exploration on 18 inland blocks nearly a year ago.

The fifth contract was reached on EP-2 Block exploration in Aunglan region and PSCG Block in Taungdwingyi.

Foreign companies have long been engaged in Myanmar’s 49 inland blocks and 26 offshore blocks in Mon, Taninthayi and Rakhine regions or states since 1988.

They include those from Australia, Britain, Canada, China, Indonesia, India, South Korea, Malaysia, Russia, Singapore, Thailand and Vietnam.

Myanmar has abundant 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.

Myanmar’s natural gas export fetched 2.947 billion U.S. dollars in the first 11 months of the fiscal year 2011-12, up about 424.77 million dollars from 2.522 billion dollars in fiscal year 2010-11, according to official statistics.

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.

CRIENGLISH.com

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