Unocal unit signs contract for additional exploration acreage offshore Myanmar
El Segundo, Calif., Jan. 30, 1997 -- Unocal Corporation's Unocal Myanmar Offshore Co., Ltd., subsidiary and Total Myanmar Exploration and Production, Ltd., a unit of Total of France, today said they signed a production sharing contract with the Myanma Oil and Gas Enterprise (MOGE) for exploration in Block M8 in the Andaman Sea, offshore Myanmar.
The block covers 11,068 square kilometers (4,275 square miles) and is located southwest of Blocks M5 and M6, where the Yadana natural gas field, set for production in mid-1998, is located. The co-venturers intend to shoot 5,000 km (3,100 miles) of 2D seismic in the first two-year phase of the contract.
Unocal will hold a 47.5% interest, and Total, as operator, will hold 52.5%. MOGE has an option to acquire a 15% interest which, if exercised, would reduce the other participants' interests proportionately.
"We are happy to expand our opportunities in Myanmar," said John G. Vandermeer, Unocal vice president, New Ventures, South and Southeast Asia. "This step reflects Unocal's strategic focus of connecting growing energy markets to vitally needed energy sources. Increases in natural gas production can only bring broader growth to Myanmar's emerging economy."
Unocal, Total, PTT Exploration and Production Co., and MOGE are co-venturers in the US$1.2 billion Yadana natural gas project, which is bringing natural gas to Thailand via a 400-kilometer (250-mile) pipeline to the Thailand border. The field is expected to supply 525 million cubic feet per day (mmcfd) of natural gas to Thailand and 125 mmcfd for domestic consumption. First production is scheduled for mid-1998.
In 1996, the Yadana consortium conducted a six-well exploration program on blocks M5 and M6 in the Andaman. The program discovered the Sein natural gas field and confirmed the Badamyar structure -- both of which could easily be produced through the Yadana platform complex.
Updated: January 1997