Thursday, July 27, 2017

Offshore PSCs to finish before water festival

The signing of the remaining Production Sharing Contracts (PSC) for offshore blocks will be completed before the water festival begins, say officials.

A total of 19 international oil companies were awarded exploration and production rights for oil and gas in 20 of the 30 blocks in offshore bidding in 2013. Only a few companies are left to sign the PSCs.

“We have confirmed some PSC signings next week and are negotiating with other companies to finish the process before the Thingyan festival begins” on April 13, said an official in the Ministry of Energy. The signings are to take place early next month in Nay Pyi Taw.

The last international oil companies yet to sign are Norway-based Statoil, US-based ConocoPhillips; Australia-based ROC Oil; Tap Oil and Transcontinental Group (TRG); the Canadian Foresight Group (CFG) based in North America; Reliance Industries of India, European firm Eni; and Petrovietnam.

The signing with TRG is tol take place on March 30, with Eni and Reliance set to sign the following day, the official said.

“Now we are finalising the exact date for ROC Oil and Statoil to sign, at the end of March, or in April before Thingyan,” he added.

TRG, partnering with the Canadian Foresight Group, has been awarded the shallow-water block M-15, the most sought-after in the bidding round.

A local furniture company, Lin Win, is the local partner of TRG, while Century Bright Gold, a subsidiary of Kaung Myanmar Aung (KMA) Group of Companies, is partnering with CFG.

Reliance Industries of India was awarded two shallow-water blocks, M-17 and M-18, and will partner with United National Resources Development Services.

Eni, which won two deepwater blocks, is to sign its PSC contract for blocks MD-2 and MD-4 in Moattma offshore on March 31.

Australia’s ROC and Tap, partnering with Smart E&P International of Myanmar, will sign for block M-7, and Norway’s Statoil, partnering with ConocoPhillips, was awarded deepwater block AD-10 off Rakhine.

The remaining 13 contracts have already been signed: with Oil India, Ophir, Berlanga, BG Group and Woodside Energy, also including super majors Chevron, Shell and Total.

The offshore PSC signing between Myanma Oil and Gas Enterprise (MOGE) and international companies began last December 2014.