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PTTEP pledges to continue gas production work in Myanmar

  • Apr 27, 2020

Thai oil and gas company PTT Exploration and Production (PTTEP) will continue to execute its 2020 Economic Plan, which includes work in Myanmar, said Mr Piya Sukhumpanumet, general manager from PTTEP Myanmar Asset.

PTTEP is the operator of the Zawtika natural gas project, which includes the development of the Zawtika, Kakonna and Gawthaka gas fields located in blocks M9 and M11 of the Gulf of Martaban, offshore of Myanmar.

PTTEP owns an 80 percent interest in the project, with Myanma Oil and Gas Enterprise (MOGE) holds the remaining 20pc. Natural gas was first produced from Zawtika’s M9 Block in 2007 and it is 30-year project. Output from the Zawtika field is also being sent to Thailand under a production sharing contract signed in 2003.

Myanmar currently exports 245 cubic feet of natural gas to Thailand and delivers 100 cubic feet for domestic use daily from the Zawtika project.

Mr Sukhumpanumet said the sale of gas produced at Zawtika for this year has already been covered by the contract at a fixed price. “World oil prices have fallen 60 pc since March due to COVID-19, but this will have no significant impact on targeted PTTEP sales for this year,” he said. 

PTTEP Myanmar Asset claimed there are oil fields where adequate amounts of oil and natural gas can be extracted in accordance with the pledges in the contract. “The amount of natural gas provided to Myanmar by PTTEP Myanmar Asset will not be reduced,” Mr Sukhumpanumet said. 

Global oil prices have fallen substantially due to concerns over storage capacity amid low demand for travel and transport as a result of COVID-19.  Brent crude, the international benchmark for oil prices, opened April 27 at US$20.75 a barrel.

Last week, US oil fell below zero for the first time as investors scrambled to offload barrels before the expiry of a trading contract, but could not readily find buyers. Prices have recovered since, but remain at their lowest levels for years. – Translated

Source: https://www.mmtimes.com/news/pttep-pledges-continue-gas-production-work-myanmar.html