Total and JX NOEX acquire stake in Myanmar M-11
PTT Exploration and Production (PTTEP), the national oil company in Thailand, Total from France and JX Nippon Oil & Gas Exploration (JX NOEX) from Japan, decided to join hands into a partnership to further explore and develop the offshore Myanmar oil and gas fields in the M-11 block.
Under the Farm-out agreement signed between PTTEP and its new partners Total and JX NOEX, and still under the approval of the Myanmar Government, PTTEP will remain as operator with the following share of working interests:
– PTTEP 45% is the operator
– Total 40%
– JX NOEX 15%
PTTEP signed its production sharing contract (PSC) with the Myanmar Government in 2005 to explore the M-11 block and produce:
– Crude oil
The National Oil Companies are active in Myanmar
Since 1988, Myanmar is motivating foreign companies to come back with their technology and capital so that today Petronas, Daewoo, PTTEP, China National Offshore Oil Corporation (CNOOC), China National Petrochemical Corporation (CNPC), Essar, GAIL, JX NOEX, Malaysia’s Rimbunam, India’s ONGC, Silver Wave Energy, Australia’s Danford Equities, Russia’s Sun Itera Oil & Gas and Total are exploring and/or developing more than 30 offshore blocks.
The national oil company, Myanmar Oi and Gas Enterprise (MOGE) is in charge by the Ministry of Energy of the exploration and production in the country.
MOGE also covers the 1,200 mile of onshore pipeline network.
Before this agreement, PTTEP and its partners Total and JX NOEX have accumulated a long standing experience in exploration and production in Myanmar or in the region where they already share working interest in different projects such as B6/27, Bongkok, Yadana and Yetagun already in production.
Total is operating in Myanmar since 1982 where its developed the Yadana gas field with 32% working interest to supply the Myanmar local market and Thailand for power generation purpose.
The gas is exported from the Yadana field through a 365 kilometer subsea pipeline to the Myanmar shore and expanded by 63 kilometer onshore pipeline to the Thai border.
To set some reference about the capital expenditure required to develop deep water offshore field in Myanamar, the Yadana project costed $1 billion for engineering and construction between 1995 and 1998.
In parallel of the M-11 block, PTTEP is exploring and developing the block M-3, while JX NOEX is active in Myanmar since 1992 with working interests in the blocks M-12,13 and 14 of the Yetagun offshore gas and condensate field.
PTTEP, Total and JX NOEX to drill first well on Q1 2013
So the partners will have the cooperation experience when they will mobilize their respective deep water technology and share their knowledge about offshore Myanmar fields.
According to the actual status of the M-11 block, PTTEP bought the M-11 license in 2005 and proceeded to 2D seismic analysis and geology study.
Then PTTEP completed a 3d seismic analysis on first half 2012 over the high potential areas of the block covering 1,230 square kilometer.
The conclusions of the collected data from these surveys are encouraging PTTEP and its partners to proceed with a first exploratory well on early 2013.
Since Myanmar produces around 180, 000 barrels of oil equivalent per day (boe), out of which 90% is Natural gas, PTTEP and its partners Total and JX NOEX are motivated to explore and develop the M-11 block as it is suspected to contain significant reserves of oil and condensate together with the gas.