Myanmar Offshore Oil Field Discovered

News - National Written by Xinhua Tuesday, 02 February 2010 23:57

An assessing oil well in Myanmar's Mottama offshore oil field is estimated to be able to start commercial production in the dry season this year after test-fire of gas was successfully done on Monday, according to Tuesday's official newspaper New Light of Myanmar.

The Zawtika-9 oil well project in block M-9 of the Mottama offshore oil field is being implemented with the cooperation of the PTTEP of Thailand.

Test-fire of gas was also conducted on another Jawtika-9 assessing well, the report said.

Since 2005, a total of 18 exploring and assessing oil wells have been drilled at the block and according to the drilled structure, the average covering amount of natural gas is 5.4 trillion cubic-feet (TCF) or 152.9 million cubic-meters (MCM).

Experts estimated that the well could yield at least 1.7 to 10. 7 TCF of gas, adding that the Zawtika-9 well may become next commercial project of Mottama offshore oil field.

In June 2008, Myanmar's state-run Oil and Gas Enterprise signed a gas deal in Nay Pyi Taw with two Thai oil companies -- PTTEP International Ltd and the PTT Public Co Ltd -- on sale of natural gas produced from the block M-9.

The PTTEP has been engaged in gas exploration at the offshore block as the sole operator and has so far found large and commercial gas deposits at seven test wells since 2005.

With a total estimated gas reserve of more than 8 TCF and a production rate of about 300 million cubic-feet(MCF) per day, the M-9 field is expected to be able to produce gas and export to Thailand by late 2012.

The seven test wells where gas deposit was discovered are Zawtika-1, Gawthaka-1, Karkonna-1, Zawtika-2, Zawtika-3, Zawtika-4 and Zawtika-5. Of them, the last Zawtika-5 was found in July 2007.

The authorities described the gas deposit discovery as being similar to that in three other huge gas fields of Yadana, Yetagun and Shwe previously explored and developed.

The PTTEP had also been engaged in four other gas projects in Myanmar at blocks M-7, M-3, M-4 and M-11 in the same Mottama offshore area since 2003.

Meanwhile, a Malaysian and a Singaporean companies reached contracts with Myanmar last month on exploitation and production of petroleum and natural gas at some three blocks in the same Mottama offshore oil field.

The two companies -- Petronas Carigali Overseas of Malaysia and UNOG Pte Ltd of Singapore will carry out the undertakings at blocks MD-4, MD-5 and MD-6 in the area under production sharing contracts.

Myanmar has abundance of natural gas resources especially in the offshore areas. With three main large offshore oil and gas fields and 19 onshore ones, Myanmar has proven recoverable reserve of 18.012 TCF out of 89.722 TCF's estimated reserve of offshore and onshore gas, experts said.

The country is also estimated to have 3.2 billion barrels of recoverable crude oil reserve, official statistics indicate.

According to official statistics, foreign oil companies engaged in oil and gas exploration and production in Myanmar include Australia, Britain, Canada, China, Indonesia, India, South Korea, Malaysia, Russia, Singapore, Thailand and Vietnam.

The statistics reveal that foreign investment in Myanmar's oil and gas sector had reached 3.398 billion U.S. dollars in 89 projects as of the end of May 2009, standing the second in the country's foreign investment sectorally after electric power.

According to the Central Statistical Organization, in the fiscal year 2008-09, Myanmar produced 6.89 million barrels of crude oil and 401.9 BCF of gas.

More statistics show that during the year, Myanmar gained 2.384 billion dollars for exporting 376.94 BCF of gas.

Original source: http://english.cri.cn/6966/2010/02/02/2001s547346.htm