Total announced Monday the signature of an agreement with PTTEP for the acquisition of a 40% interest in the Production Sharing Contract covering the offshore Block M-11 in Martaban basin. PTTEP (PTT Exploration and Production Plc.), Thailand’s national company, will retain the operatorship.
The block covers an area of 5,373 km², with a water depth of 200 to 2,300 meters. The current exploration phase contemplates a well to be drilled by Q3 2013.
Yves-Louis Darricarrère, Total’s Upstream President, commented on the signature: “With this acquisition, Total will bring its well recognized deep offshore expertise and its world-wide proven technology to contribute to exploration activities in Myanmar and potentially develop the country’s hydrocarbon resources. By doing so, Total will continue to support the country’s economic opening and growth. PTTEP is our historical partner in this region and in Myanmar where we have been cooperating successfully on the Yadana project.”
This transaction will need to be approved by Union of Myanmar Authorities.
Total in Myanmar
Total’s equity production in Myanmar was at 15,000 barrels of oil equivalent per day in 2011. Total operates Yadana field (31,2%) located on the offshore Blocks M5 and M6. Gas produced on the field is delivered primarily to PTT to be used in Thai power plants.
The Yadana field also supplies the domestic market via a land pipeline and, since June 2010, via a sub-sea pipeline built and operated by Myanmar’s state-owned company MOGE.
The Yadana project employs around 900 people, including contractors. Over 90% of the staff has been recruited locally in Myanmar and accompanied by an extensive training program.