An exploration contract on Block EP-5 in the Inpin Tegyigon area of Burma has been signed by the government and a Singapore’s Istech Energy EP-5 Pte Ltd. A Burmese privately owned firm, Smart Technical Services Ltd, will also share in the deal.
Under the production sharing contract, Myanmar Oil and Gas Enterprise said it is the sixth contract of its kind reached after the government invited international tenders for exploration on 18 inland blocks nearly a year ago.
The contract covers EP-2 Block exploration in Aunglan region and the PSCG Block in Taungdwingyi.
Burma has 49 inland blocks and 26 offshore blocks in Mon, Taninthayi and Rakhine regions or states.
Foreign companies involved in Burmese exploration or production include firms 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. Currently, it has three main large offshore oil and gas fields and 19 onshore fields. It has proven recoverable reserve of 18. 012 trillion cubic feet (TCF) out of 89.722 TCF's estimated reserve of offshore and onshore gas, the government 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 earned US$ 2.947 billion in the first 11 months of the fiscal year 2011-12, up about 424.77 million dollars from $2.522 billion in fiscal year 2010-11, according to ministry statistics.
Statistics show foreign investment in Burma’s oil and gas sector had reached $13.815 billion in 104 projects as of the end of November 2011, accounting for 34.18 per cent and standing the second in the country's foreign investment sectors after electrical power.
Burma has only one oil company, Myanmar Petroleum Resources Limited, which is owned by Michael Moe Myint. The Htoo Company owned by businessmen Tay Za and Nay Aung, who is the son of former Industry No. 1 Minister Aung Thaung, are shareholders in foreign oil and gas companies, according to sources close to the Ministry of Energy.
Currently, Burma’s inland blocks are producing more than 9,300 crude oil barrels a day and more than 100 million cubic feet of natural gas a day, according to government figures. The Yadana and Yetagun offshore natural gas blocks are producing more than 1 billion cubic feet of natural gas a day.
According statements by the Ministry of Energy, there are a total of 0.46 trillion cubic feet of natural gas in the inland area in Burma and 17 trillion cubic feet in offshore blocks.