Thailand's PTT Exploration & Production (PTTEP) has signed a production sharing contract with Myanmar Oil & Gas Enterprise (MOGE) for an onshore exploration block.
The MOGE-3 Block covers 1217 square kilometres in central Myanmar and was awarded to PTTEP and its joint venture partners as part of the 2013 Myanmar Onshore Blocks Second Bidding Round.
PTTEP plans to shoot both 2D and 3D seismic over the block and drill four exploration wells within the the initial three-year term of the PSC, which carries a minimum commitment of roughly $72 million.
“This investment in Myanmar is a significant operational progress in line with PTTEP long term growth direction to explore the high potential areas,” PTTEP chief executive Tevin Vongvanich said.
“If this exploration yields a successful result, it will thus secure both Thailand and Myanmar energy supply in the future.”
PTTEP operates MOGE-3 with an 85% stake and is partnered by Palang Sophon Offshore and Win Precious Resources, which hold a 10% and 5% interest respectively.
PTTEP holds interest in another six blocks in Myanmar, including the PSC-G and EP-2 onshore blocks and the offshore M3, M11, MD-7 and MD-8 blocks.
It's main production projects in the country include Yadana, Yetagun and Zawtika which contribute about 75,000 barrels of oil equivalent per day, which is equivalent to roughly 20% of the company's overall production.