SINGAPORE — Chevron Corp has signed a production sharing contract (PSC) with Myanmar Oil & Gas Enterprise (MOGE) to explore oil and gas in the Rakhine Basin.
The contract covers an offshore area known as Block A5, which lies 200 km (124 miles) northwest of Rangoon and spans more than 10,600 square kilometers, the company said in a statement issued late on Tuesday.
The PSC comes a year after Chevron was granted exploration rights to block A5 and is the first to come with a majority share for the U.S. explorer.
“The exploration of this block is aligned with Chevron’s long-term strategy to find and develop resources that will help meet the growing energy needs in the Asia Pacific region,” said Brad Middleton, managing director of Chevron Asia South Business Unit.
Chevron’s subsidiary Unocal Myanmar Offshore Co. Ltd. will operate the block with a 99 percent interest, while local company Royal Marine Engineering Co. Ltd. holds the remaining share.