PTTEP seeking partners for Burma project

PTT Exploration and Production is in talks with strategic partners to invest in its five petroleum fields in the Gulf of Martaban off Burma, says CEO Anon Sirisaengtaksin.

Burma’s state-owned Myanmar Oil and Gas Enterprise (MOGE) is expected to hold 15% to 20%, with the remaining shares held by PTTEP and others. However, PTTEP would be the operator of blocks M3, M4, M7, M9 and M11.

“It would be more interesting for investors if we discuss a joint venture for all five blocks as a single transaction instead of looking for individual partners for each one,”said Mr Anon. “That would increase the value of the projects and give more bargaining power to us.”

The company has been talking with potential partners but he declined to give further details. “Our new partner for this Burmese project should have the potential to help us with capital or at least have some reserves to swap for the shares,” said Mr Anon.

So far, block M9 is the only one with a gas purchase agreement, signed on July 30 with parent firm PTT and Myanmar Oil and Gas Enterprise. PTTEP will pump natural gas from Zawtika, one of the wells in M9, in the amount of 300 million standard cubic feet per day in 2013, with 240 mmscfd of that sold to PTT.

The four other blocks will start exploration next year.

Meanwhile, higher-than-expected average daily output has led PTTEP to revise up its second-half production estimate by 3.7% to 263,400 barrels of oil equivalent per day from 254,000.

It reported total proven oil and gas reserves worldwide at 1.1 billion barrels of oil equivalent at the end of last year, up from 944 million in 2008. read all

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