Thursday, August 17, 2017

Petronas, UNOG sign deals on three offshore oil and gas blocks

Details were not available last week on a new energy contract allowing two foreign firms to explore for oil and gas in three deep-sea blocks in the Gulf of Martaban, but one local expert said little was known about the potential of the area in question.

Officials from the state-owned Myanmar Oil and Gas Enterprise (MOGE) and representatives of Malaysia’s Petronas Carigali Overseas and Singapore’s UNOG Pte Ltd signed a production sharing contract for deep-sea blocks MD-4, MD-5 and MD-6 on January 21, according to the official New Light of Myanmar newspaper.

Details on the scale of the proposed investment and any signing fees were not disclosed in the report.

A MOGE official declined to provide further details on the deal last week, while representatives of Petronas Carihali and UNOG did not return a request for comment.

The three blocks lie in the Gulf of Mottama, south of a number of concessions held by Thai company PTTEP International.

A local oil and gas expert, who asked not to be named, said the prospects were little known.

“These are very new deepwater blocks and there is no data concerning the blocks and how much potential they have for oil and gas,” the expert said.

Petronas Carigali Overseas Sdn Bhd is the main overseas hydrocarbon exploration arm of Malaysian-owned oil and gas company Petronas.

Singapore-based UNOG has existing production sharing contracts with Ribunan Petrogas Ltd of the British Virgin Islands for offshore blocks A-5 and M-1, according to a report in the July/August 2007 edition of Drilling Contractor magazine. Block M-1 is also in the Gulf of Mottama, while A-5 is located to the north, in the Bay of Bengal off the Rakhine coast.