(EnergyAsia, June 27 2012, Wednesday) — Thai state upstream firm PTT Exploration and Production Public Company Limited (PTTEP) is targeting Myanmar for expansion after securing its another two production sharing contracts with state Myanma Oil and Gas Enterprise (MGOE).
PTTEP, which will partner with Myanmar’s Win Precious Resources Pte Ltd (WPR), signed the agreement early this month for the right to explore and produce in the onshore 13,333-sq km PSC-G and 1,344-sq km EP-2 blocks. Located in central Myanmar, the two blocks were among 18 tendered in a recent onshore bidding round.
The contracts were signed by PTTEP CEO Tevin Vongvanich and WPR managing director U Htun Lynn Shein with U Aung Htoo, MOGE’s managing director at a ceremony in Myanmar’s capital city of Nay Pyi Taw. Arak Chonlathanont, Thailand’s Energy Minister, and U Than Htay, his Myanmar counterpart, witnessed the signing.
PTTEP, which will hold a 90% stake in the joint venture with WPR the remaining 10%, said the partners will commit at least US$24 million to conduct 2-D seismic survey and drill four wells in the two blocks over the next three years.
The Thai company has already invested in four upstream projects in Myanmar: Yadana, Yetagun, Zawtika and the M3 & M11 blocks.
Mr Tevin said PTTEP has identified Thailand’s western resource-rich neighbour as a key area for his company to grow its oil and gas assets.
The Thai firm has allocated US$2.4 billion or 20% of its 2012-2016 budget to developing upstream projects in Myanmar which recently emerged from decades of self-imposed isolation.
As a follow-through on its recent political reforms, the Myanmar government is expected to liberalise foreign investment flows into the country when Parliament meets on July 4.
In a separate announcment, PTTEP said its Greater Bongkot South (GBS) field, which has been under development since 2008, started producing 320 million standard cubic feet/day (mmscfd) of natural gas and 9,000 b/d of condensate on June 16.
Mr Tevin said production from Greater Bongkot South, the main field in the offshore Bongkot project, meets about 20% of the country’s natural gas demand. Bongkot is located in the Navamindra Petroleum Area, about 203 km off the coast of Songkhla province.
PTTEP is the operator and main shareholder with a 44.4445% interest. Its partners include Total E&P Thailand Company Limited (33.3333%) and BG Asia Pacific Pte Limited (22.2222%).