Over US$270 million to be spent on oil, gas exploration

Myanmar Oil and Gas Enterprise (MOGE) and Unocal Myanmar Offshore Company plan to spend US$277.85 million over the next six years on oil and gas exploration at offshore block A-5 in Rakhine State, according to the Energy Ministry.

The joint venture signed a production-sharing agreement on March 20. The ministry received a signature bonus of $3.5 million and a surface fee of $150,000.

Also on March 20 in Nay Pyi Taw, MOGE and Woodside Energy Myanmar, BG Exploration and Production Myanmar, and Myanmar Petroleum Exploration and Production signed production-sharing agreements for blocks A-4, A-2 and A-7, also located in Rakhine State.

The ministry will receive US$82.4 million as a signature bonus and US$3.7 million in surface fees for these blocks.

The ministry opened public tenders for oil blocks in 2013, and selected companies were announced on March 26, 2014. A1 Mining, United National Resources Development Services, Myanmar Petroleum E&P, Smart E&P, Parami Energy Development, Oil Star Management Services, Royal Marine Engineering and Lin Win were selected as joint venture partners for MOGE.