MYANMAR has demarcated eight new deepwater energy blocks off the west coast of the country to attract more foreign investment in one of its most lucrative industries, energy production.

The government two months ago announced it had demarcated eight new deepwater offshore oil and gas blocks, located off the coast of Myanmar's western Rakhine State.

The new deepwater offshore blocks are named AD-11 to AD-18 and are located close to one of Myanmar’s proven gas reserves, the statement added.
Energy experts consider the deepwater blocks attractive propositions given the energy reserves in nearby blocks.

“Natural gas reserves have been found along the border of the Gulf of Bangladesh so there is much potential to find natural gas deposits in new blocks,” said one energy observer after the announcement, referring to discoveries made recently by India.

India has in the past explored for natural gas off its east coast with some success, while Myanmar has discovered commercial gas deposits off Rakhine State in the country’s west.

He also said that the aggressive exploration currently being undertaken by international oil companies may lead to the discovery of new hydrocarbon resources as lucrative as Daewoo’s Shwe gas field and PTTEP’s M-9 block.

“Companies like CNOOC, Twinza and ONGC are also exploring aggressively in offshore blocks so I am sure that another commercial gas reserve will be found in Myanmar’s offshore region,” he said.

Myanmar signed agreements last June with South Korean, Chinese and Thai energy companies to develop and transport natural gas to China and Thailand from offshore blocks near Rakhine State and in the Mottama Gulf.

It is also expected the country will earn an additional US$500 million annually in natural gas sales to Thailand from its offshore M-9 block in Mottama Gulf.

He said the amount of natural gas in M-9 can be compared with the gas reserve in Yetagun project, which produces about 400 million cubic feet of gas a day that is sent to Thailand via pipeline.

He said when production from the M-9 project begins in 2011 or 2012 revenue from gas sales would almost certainly increase by the same amount as the Yetagun project brings in – about $500 million.

Thai energy company PTTEP International Limited announced it had on June 23 signed an agreement with Myanma Oil and Gas Enterprise (MOGE) to develop the gas field, so a lucrative windfall for Myanmar seems assured.

A press statement released after the signing said M-9 will produce 300 million cubic feet per day, of which 240 will be exported to Thailand and the remaining 60 will be supplied for domestic use. The gas price will be based on the existing price under the current Gas Sales Agreement between Myanmar and Thailand.

PTTEP are also major shareholders in the Yetagun and Yadana gas projects, which are Myanmar's major source of foreign currency earnings.