Foreign firms sign more oil, gas contracts with Myanmar
January 25, 2005
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A consortium comprising two Chinese and one Singaporean companies reached three contracts with Myanmar here Tuesday on cooperation in oil and natural gas exploration in two onshore and one offshore block areas.
The contracts were signed by the China National Offshore Oil Company (CNOOC) Myanmar Ltd, Golden Aaron Pte. Ltd of Singapore, China Huanqiu Contracting and Engineering Corporation and state- run Myanma Oil and Gas Enterprise, Under the contracts, oil and gas exploration will be carried out at over 17,000-square-kilometer onshore Block C-1 (Indaw-Yenan area) and over 26,000-square-kilometer onshore Block C-2 (Shwebo- Monywa area) in northwestern Sagaing division, and over 9,600- square-kilometer Block M-2 in the Mottama offshore area in southern Tanintharyi division.
This is the third time for the consortium to sign contracts with Myanmar. The first was signed last October on similar activities at onshore Block-M of 7,760 square-kilometers in the Rakhine state's Kyaukpyu area, while the second was singed last December on over 10,000-square-kilometer Block A-4 in western Rakhine state and 15,534-square-kilometer Block M-10 in the Mottama offshore area.
With 19 onshore and three main large offshore oil and gas fields, Myanmar possesses a total of 2.46 trillion cubic meters ( TCM) of gas reserve and 3.2 billion barrels of recoverable crude oil reserve in the country's offshore and onshore areas, according to official statistics.
The Central Statistical Organization statistics show that Myanmar produced 9.9 billion cubic meters (BCM) of gas and 7.16 million barrels of crude oil in fiscal year 2003-04. Gas export during the year went to 5.66 BCM, earning nearly 600 million dollars, while crude oil import worth 13.18 million dollars the same year.
Since Myanmar opened to foreign investment in late 1988, such investment in the sector had reached 2.5 billion dollars as of the beginning of 2004, the figures also reveal. Foreign oil companies engaged in the oil and gas sector mainly include those from Australia, Britain, Canada, China, Indonesia, India, South Korea, Malaysia and Thailand.