Myint & As­so­ciates to op­er­ate Off­shore Sup­ply Base in Nga Yoke Kaung Bay area

Mizzima Business Weekly - - CONTENTS -

Myint & As­so­ciates Off­shore Sup­ply Base Ltd. (M&AOSB), a sub­sidiary of Myint & As­so­ciates Co., Ltd. and a mem­ber of the MPRL E&P Group of Com­pa­nies con­firmed it has re­ceived ap­proval from the Myan­mar In­vest­ment Com­mis­sion, in com­pli­ance with the Myan­mar In­vest­ment Law and Myan­mar In­vest­ment Reg­u­la­tions, to in­vest in an Off­shore Sup­ply Base Project.

M&AOSB in­tends to build and op­er­ate its Off­shore Sup­ply Base in Nga Yoke Kaung Bay area in Aye­yarwaddy Divi­sion where it is most ide­ally sit­u­ated for a project of this type. Myan­mar is cur­rently one of world’s hotspots for oil and gas ex­plo­ration, ac­cord­ing to re­search firm IHS Global In­sights. In 2014, the Min­istry of Elec­tric­ity and En­ergy awarded 20 in­ter­na­tional con­sor­tia rights to ex­plore and pro­duce off­shore blocks via the sign­ing of Pro­duc­tion Shar­ing Con­tracts (PSCs). The terms of those PSCs re­quire the op­er­a­tors of those blocks to in­vest in ex­plo­ration ac­tiv­i­ties, in­clud­ing drilling com­mit­ment of a spec­i­fied num­ber of wells, over a pe­riod span­ning up to seven years. An ef­fi­cient off­shore sup­ply base lo­cated within Myan­mar will be a crit­i­cal re­quire­ment to sup­port this ac­tiv­ity in terms of low­ered costs and in­creased op­er­a­tional ef­fi­ciency. M&AOSB in­tends to cap­ture this large and ever-grow­ing mar­ket and, in ad­di­tion, pro­vide its ser­vices to the al­ready dis­cov­ered off­shore fields (such as Block A-6) to­gether with any that may be de­vel­oped in the fu­ture.

M&AOSB, which has been work­ing on its Off­shore Sup­ply Base Project for the past two years, has un­der­taken a num­ber of fea­si­bil­ity stud­ies and is well ad­vanced in its plan­ning. It has al­ready con­ducted an EIA and SIA in con­sul­ta­tion with lo­cal stake­hold­ers. Fol­low­ing the grant­ing of ap­proval by MIC, the com­pany now plans to fast track its project, and is con­fi­dent that its fa­cil­ity will be ready for busi­ness by M&AOSB will lever­age the ex­per­tise of Myint & As­so­ciates Co., Ltd., which has been and re­mains the leader in the en­ergy ser­vices sec­tor within Myan­mar and re­gional oil and gas in­dus­try since 1989, as well as its sis­ter com­pa­nies, MPRL E&P and MPEP.

MPRL E&P was founded in 1996 and has since been the main con­trac­tor to MOGE with re­gard to un­der­tak­ing pro­duc­tion en­hance­ment op­er­a­tions in Mann Field, lo­cated in Cen­tral Myan­mar. MPRL E&P later signed a PSC con­tract to con­duct ex­plo­ration ac­tiv­ity in off­shore Block A-6 in 2007 and made the first gas dis­cov­ery in the south­ern off­shore Rakhine Basin in 2012 dur­ing its Pyi Thar ex­plo­ration drilling cam­paign. Sub­se­quently, in late 2015, MPRL E&P and its part­ners con­sist­ing of Wood­side and To­tal, em­barked on the Shwe Yee Htun ex­plo­ration drilling cam­paign and drilled a sec­ond ex­plo­ration well in Block A-6.

Ex­plo­ration well Shwe Yee Htun-1 was drilled in record set­ting wa­ter depths of 2034 me­ters and re­sulted in a sec­ond gas dis­cov­ery which was of­fi­cially an­nounced in drilling is now sched­uled to take place com­menc­ing in June 2017 whereby two ap­praisal wells will be drilled back-to-back. M&AOSB is a crit­i­cal el­e­ment to­wards en­abling any po­ten­tial devel­op­ment in Block A-6 to be pur­sued in an ac­cel­er­ated man­ner.MPEP was founded as the group’s Myan­mar arm for up­stream ex­plo­ration and pro­duc­tion ac­tiv­i­ties. In 2013-2014, MPEP en­tered into joint ven­ture part­ner­ship with op­er­a­tors Shell and Wood­side re­spec­tively for off­shore Blocks A-4 and A-7.

M&AOSB es­ti­mates that it will in­vest ap­prox­i­mately US $ 50 mil­lion to con­struct the ini­tial phase of the project and it ex­pects that it will gen­er­ate MMK 25 bil­lion of state rev­enues over the first ten years of the project.

The off­shore sup­ply base will have a tremen­dous im­pact to­wards serv­ing the off­shore oil and gas sec­tor. The devel­op­ment of this base will cre­ate a sig­nif­i­cant num­ber of jobs for the lo­cal com­mu­nity and con­trib­ute to in­creased devel­op­ment of the Aye­yarwady Re­gion with ex­ten­sive im­prove­ments to in­fra­struc­ture.

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