Shell Inks Exploration Deal

Royal Dutch Shell and its Japanese partner Mitsui Oil Exploration Co., Ltd. (MOECO) signed an exploration and production sharing contract with state-owned firm Myanma Oil and Gas Enterprise (MOGE) in Naypyitaw in February for three offshore-water blocks.

The contract allows Shell to assess the potential of deep-water blocks AD-9 and AD-11 off Rakhine State and MD-5 off Tanintharyi Region.

Shell is the main operator, with a 90 percent stake in each of the three blocks, while MOECO will assume a 10 percent participating interest.

While global oil prices have fallen sharply since mid2014, Shell said it was delighted to pursue the opportunity to “unlock and develop” Myanmar’s energy resources.

“The three blocks offer an exciting frontier exploration opportunity to apply the advanced deep-water technical capabilities we have built up around the world over the past three decades,” Graeme Smith, VP Exploration Asia and Australia at Royal Dutch Shell, said in a statement.

The three blocks together cover some 13,048 square miles (21,000 km) with water depths ranging from 1,800 to 2,700 meters.

U Zay Yar Aung, the Minister for Energy, said oil and gas exploration was pivotal in the development of Myanmar’s energy sector and would help spur economic growth.

Kyaw Hsu Mon