Sunday, August 20, 2017

BG Group and Woodside to start offshore exploration

UK-Based  BG Group and Australia’s Woodside Energy will start offshore exploration next week according to a notice in state media.

A number of international oil companies will begin offshore exploration activities before the end of this year.( Aung Shin/The Myanmar Times)A number of international oil companies will begin offshore exploration activities before the end of this year.( Aung Shin/The Myanmar Times)

BG Group will undertake 3D seismic surveys in blocks A-4 and AD-2 in the Rakhine basin off the western coast of Myanmar, starting from November 23.

The company will conduct seismic campaigns using a Ramform Sovereign ship until the end of April 2016, according to the statement.

Woodside Energy also will carry out 3D seismic surveys with a Ramform Titan vessel in deep water block AD-5 and shallow water A-7, also in the Rakhine offshore basin. The company will begin exploration on November 20 until mid-April 2016.

“The four blocks cover a total area of nearly 30,000 square kilometres, which is why the seismic surveys will take around six months,” said an official from Myanma Oil and Gas Enterprise (MOGE).

In 2013, the two international oil companies were awarded the right to exploration and production activities in two shallow water and two deepwater blocks in Rakhine basin.

MOGE, BG and Woodside signed a production-sharing contract in March, when the two companies committed to invest more than US$1 billion across the four blocks over a six-to- eight-year exploration period, according to MOGE.

Myanmar Petroleum Exploration and Production (MPEP) is BG and Woodside’s local partner in shallow water blocks A-4 and A-7, holding a 10 percent share in each block.

The government awarded 20 offshore blocks to 13 international and nine local companies in 2013. The signing of production sharing contracts ended this year.

Among the international oil companies, Daewoo International, Ophir Energy, Chevron subsidiary Unocal Myanmar Offshore, Royal Dutch Shell, Woodside, PTTEP International, Petronas, Canadian Foresight Group and Eni had planned to start exploration activities before the end of this year.

Unocal Myanmar Offshore began exploration activities in block A-5 in the Rakhine basin on October 26 and will continue its 3D seismic campaigns using the Viking Vision until the end of January 2016.

Meanwhile, Malaysian state-owned Petronas started drilling development wells in blocks M-12, M-13 and M-14 on November 1.

The company will continue its drilling activities until July 2016 to maintain production levels at its existing Yetagun field in the Andaman Sea.

MOGE officials have said the coming years, in particular 2016 and 2017, will be the busiest period yet for Myanmar’s offshore petroleum industry, as companies in existing projects and newly awarded blocks carry out exploration activities.