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PTT Exploration and Production Plc (PTTEP), Thailand’s sole listed upstream firm, and its investment partners have signed a production-sharing agreement with Myanma Oil and Gas Enterprise (MOGE) for onshore exploration and production rights for the MOGE 3 block.
Four exploration wells are planned for MOGE 3 at an initial cost of US$72 million for the first three years, president and chief executive Tevin Vongvanich said in a filing submitted to the Stock Exchange of Thailand (SET) yesterday.
Wholly owned PTTEP South Asia Ltd (PTTEP SA) is the operator, with an 85 percent share in the block, while Palang Sophon Offshore Pte Ltd holds ten percent and Win Precious Resources Pte Ltd five percent.
PTTEP and its partners won exploration rights in the second round of onshore bidding last year.
Located in central Burma to the west of the Irrawaddy River, the MOGE 3 block covers 1,217 square kilometres in the Padaukpin-Natmi area.
“This investment is significant operational progress in line with PTTEP’s long-term growth direction to explore high-potential areas,” Tevin said.
He said if the exploration was successful, it would secure energy supply for both Thailand and Burma.
PTTEP has also invested in six petroleum exploration blocks. Two are onshore blocks PSC G and EP 2, while four offshore blocks are M3, M11, MD7 and MD8.
They are part of the Yadana, Yetagun and Zawtika projects contributing 75,000 barrels of oil equivalent per day.
On Tuesday, Zawtika began delivering natural gas to PTT Plc for use in Thailand after the project started supplying gas for use in Burma in March.
Meanwhile, PTTEP yesterday insisted it shut down subsidiaries in the Cayman Islands because they were not commercially viable, not to avoid tax payments as claimed on social media.
PTTEP shares closed yesterday on the SET at $5.21, in trade worth 11.8 million.
This article was originally published by the Bangkok Post on 9 August 2014.