More offshore natural gas deposits discovered in Myanmar

The Associated Press: 31 December, 2006

Yangon:  Myanmar: Myanmar has discovered more economically viable gas deposits in an offshore natural gas field in the Gulf of Martaban operated jointly by Thailand's PTT Exploration and Production and Myanmar's state-run energy enterprise, state-run media reported Sunday.

Drilling of a test well in block M-9 by the Thai company found gas reserves estimated at 2.5 trillion cubic feet (71 billion cubic meters), said the New Light of Myanmar newspaper. With the new discovery, the block is now estimated to hold more than 8 trillion cubic feet (227 billion cubic meters).

The report said plans were under way to drill six more wells in block M-9 next year.

The gas field holds international level gas deposits much like the Yadana and Yetagun gas fields in the Gulf of Martaban, and the Shwe gas field in Myanmar's northwestern Rakhine State, the paper said.

PTTEP signed a production-sharing contract with the Myanmar government for the exploration and production of oil and gas from block M-9 in November 2003.

Thailand is currently buying natural gas from Yetagun gas field, off the coast of Tanintharyi in the Gulf of Martaban, and from Yadana gas field located north of the Yetagun field.

Since Myanmar began allowing foreign investment in 1988, it has signed exploration contracts with France's Total SA, Unocal Corp. of the United States, Malaysia's Petronas, Thailand's PTT Exploration & Production PCL and Daewoo of South Korea.

It also has deals with companies from India, Australia, Canada and Indonesia.

Despite condemnation of the ruling military regime by Western nations, foreign companies are competing to enter Myanmar's potentially lucrative energy sector.