Petronas said that under the PSCs, Petronas Carigali Myanmar II Inc, a wholly-owned subsidiary of Petronas Carigali Sdn Bhd. the exploration and production arm of Petronas, would hold a 100 percent equity in the four blocks and would be their operator as well.
In the event of commercial discovery, the Myanmar Oil and Gas Enterprise would have an option to participate with an equity of up to 20 percent during the development and production phases of the blocks.
The four blocks are located in the Tanintharyi area offshore southern Myanmar and they range in sizes from 13,500 sq km to 14,200 sq km. The northermost Block M-15 is contiguous to Block M-14 which contains the producing Yetagun gas field, part of the Yetagun Gas Project in which Petronas is already involved.
Petronas's involvement in the Yetagun Gas Project started when it acquired a 30 percent interest in the project in 1997 from Texaco. It consists of a production area covering the M-12, M-13 and M-14 blocks in the Gulf of Martaban.
Petronas's partners in the project are the Petroleum Authority of Thailand E&P International (14.17 percent) Nippon Oil (14.17 percent), MOGE (15 percent) and Premier Petroleum Myanmar Ltd (27.67 percent). Premier Petroleum which operates the project, is a wholly-owned subsidiary of Premier Oil Ltd, which in turn is an associate company of Petronas.
The first gas production from Yetagun was delivered in May 2000 to the Petroleum Authority of Thailand via a cross-border pipeline built as part of the project. The Yetagun field is currently producing 200 million standard cubic feet of gas per day.
Petronas said the award of the four blocks reflected the commitment of its continued strong presence in Myanmar and the building of strategic partnerships with the oil and gas fraternity there.
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