Australian oil and gas explorer Tap Oil announced its entry into Myanmar to explore reserves in the shallow water areas in the Moattama basin.
Tap, along with its joint venture partners, will explore the 13,000sq km Block M-7 located 160km east of the 6.5 Tcf Yadana gas field, and 110km north east of the 1.5 Tcf Zawtika gas field.
According to Tap, the Moattama basin is Myanmar’s most prolific offshore hydrocarbon province, with existing production from two offshore fields and a third field close to production commencement. Production is typically from stacked Miocene clastic reservoirs.
The Ministry of Energy, under the 2013 Myanmar Bid Round, initially awarded explorations rights to the block to Roc Oil and its partners, Tap and Smart E&P International Co.
Roc Oil, which was recently de-listed from the Australian stock exchange following its purchase by China-based Fosun International this year, withdrew from the project. As a result, Tap took over exploration rights with 95% interest in M-7.
On 26 August 2015, along with its joint venture partner, Smart E&P, the group inked the production sharing contract (PSC) with Myanmar Oil and Gas Enterprise (MOGE) at an official ceremony in Nay Pyi Taw.
“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," Troy Hayden, managing director and CEO said.
Tap anticipates to spend approximately US$2.75 million on M-7, which includes the study period with a minimum expenditure requirement of $2 million.
The JV will now proceed onto 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 program.
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