Myanmar signs more oil exploration contracts with foreign firms

Dec 14, 2004 01:00 AM

A consortium comprising two Chinese and one Singaporean companies reached two more production-sharing contracts with Myanmar on cooperation in offshore oil and natural gas exploration.
Under the contracts, signed between the China National Offshore Oil Company (CNOOC) Myanmar Ltd of China, Golden Aaron Pte. of Singapore, China Huanqiu Contracting and Engineering as well as state-run Myanma Oil and Gas Enterprise, oil and gas exploration will be carried out at over 10,000 sq km Block A-4 in western Rakhine state and 15,534 sq km Block M-10 in the gulf of Mottama in southern Tanintharyi division.

This is the second time for the consortium to reach the contracts with Myanmar, while the first was signed in last October on similar activities at onshore Block-M of 7,760 sq-km in the Rakhine state's Kyaukpyu area.
With 19 onshore and three main large offshore oil and gas fields, Myanmar possesses a total of 2.46 tcm of gas reserve and 3.2 bn barrels of recoverable crude oil reserve in the country's offshore and onshore areas, according to official statistics.

The statistics also show that Myanmar produced 9.79 bn cm of gas and 7.2 mm barrels of crude oil in 2003. Gas export during the year went to 6.45 bn cm, earning $ 655 mm, while crude oil import worth $ 27.85 mm the same year.
Since Myanmar opened to foreign investment in late 1988, such investment in the sector had reached $ 2.5 bn as of the end of 2003, the figures also reveal. Foreign oil companies engaged in the oil and gas sector also mainly include those from Britain, Malaysia, Australia, Indonesia and Canada.

Source: Xinhua News Agency