February 28, 2014 00:00 By Myanmar Eleven 5,187 Viewed
$3.3 bn for drilling, exploration work over next 5 years
PTT Exploration and Production (PTTEP) has announced that it will invest US$3.3 billion (Bt108 billion) in Myanmar over the next five years.
At a press conference in Yangon this week, the company outlined its drilling and exploring operations in that country.
Chief executive officer Tevin Vongvanich said Zawtika, in the Gulf of Martaban off Myanmar’s Andaman coast, was PTTEP’s biggest offshore project. “We are going to provide oil and gas for sustainable energy supply for Myanmar and Thailand,” he said.
The oil and gas industry has so far attracted the biggest amount of foreign investment in Myanmar. As of December, Myanmar had attracted $44.2 billion in total foreign investment, 42.5 per cent in the energy sector.
PTTEP was a main sponsor of “Myanmar Oil & Gas Week”, held from Tuesday to yesterday to provide insight for potential investors as well as the technical, financial and legal challenges they face.
The company plans to export 300 million cubic feet per day from Zawtika to Thailand by the end of this year. The oil and gas company has been working in Myanmar since 1989. It has been granted seven offshore and onshore exploration contracts, and is currently in the bidding for contracts to explore new offshore blocks. The Myanmar government is expected to announce the winners of the bids for 30 offshore blocks soon.
PTTEP also holds a 25-per-cent stake in the Yadana and Yetagun offshore gas projects being developed by Total of France and Petronas of Malaysia. Both projects are partnering with Myanma Oil and Gas Enterprise, the state oil company.
Tevin also affirmed the interest of PTT, PTTEP’s parent company, in investing in a refining complex in Myanmar.
Late last year, Attapol Rerkpibool, in charge of overseas business at PTT, said it was among seven companies vying to develop the large complex near Yangon. In its written expression of interest, PTT proposed building a refinery with daily capacity of 50,000 barrels.
Aside from the refinery, the Thai oil and gas company hopes to make presence felt in the power-generating and coal industries.
Within five years, PTT aims to open 60 fuel stations in Myanmar. To regionalise its brand, PTT will also expand the fuel-station network in Laos, Cambodia and the Philippines, Attapol added.