PTT Exploration and Production Plc (PTTEP), the only upstream petroleum company listed on the Stock Exchange of Thailand, has secured a partner with which to invest in the MD-7 project in Burma.
President and chief executive Somporn Vongvuthipornchai said PTTEP agreed to partner with Total E&P Myanmar, which will hold a 50 percent participating interest in MD-7, while PTTEP remains the operator of the project.
He said PTTEP will collaborate with Total in exploration and development activity in the block, which is in the Gulf of Martaban off the coast of Burma.
The transaction has been approved by the Burmese government, Mr. Somporn said.
The plan to seek a strategic partner on the project is in line with PTTEP’s risk management policy to join with local firms with extensive experience in deep-water operations, enhancing overall capacity.
“The Myanmar MD-7 project is located in a deep-water area,” he said. “Having a partner with expertise and experience in exploration and development for many deep-water projects will help us to carry out activity in the project more effectively.”
The MD-7 block spans 7,798 square kilometers.
PTTEP South Asia Ltd, a subsidiary of PTTEP, was awarded the exploration rights in 2013. The project is undergoing 3D seismic evaluation to assess the block’s resource potential.
PTTEP is involved in eight exploration and production projects in Burma.
The company is also accelerating its exploration and production plan for Australia’s Montara offshore block to capitalize on rising oil prices. It expects to commence work in the block by the third quarter this year, earlier than the previous plan that pegged 2018 as the start date.
PTTEP shares closed yesterday on the Stock Exchange of Thailand at 91.50 baht (US$2.50), up 50 satang, in trade worth 686 million baht ($19 million).