Tap Oil inks PSC for Myanmar block
- Business & Finance
Tap Oil Limited has formalised its entry into Myanmar following the signing of the Production Sharing Contract (PSC) for the shallow water Block M-7 in the Moattama Basin, offshore Myanmar.
Tap holds a 95% participating interest in the M-7 Block and has assumed operatorship.
Tap Energy (M7) Pte. Ltd, and its local joint venture participant, Smart E&P International Company Ltd., signed the Production Sharing Contract with Myanmar Oil and Gas Enterprise (MOGE) at an official ceremony in Nay Pyi Taw, on August 26, 2015.
Under the executed PSC, the JV partners have agreed to undertake an 18 month Environmental and Social Impact Assessment (ESIA) and Study Period, followed by an option to proceed to a three-year commitment exploration work programme.
According to its press release, Tap anticipates that it will spend approximately $2.75 million on the M-7 Block up to and including the Study Period, which has a minimum expenditure requirement of $2 million. Tap may spend more before and during the Study Period.
Managing Director/CEO, Troy Hayden, said: “The inclusion of Block M-7 in Tap’s portfolio is in line with the Company’s Southeast Asian growth strategy, anchored by the flagship Manora Oil Development that has been in production for nine months.”
The 13,372km2 M-7 Block is located in Myanmar’s offshore hydrocarbon province, the Moattama Basin, which has existing production from a number of multi-tcf offshore fields. Block M-7 is 160km east of the 6.5tcf Yadana gas field, and 70km north east of the 1.5tcf Zawtika gas field.