Current CVX Stock Info

Chevron signed a production sharing contract in its 2.6 million acre A5 block offshore Myanmar

Chevron Corp. (ticker: CVX) has signed a production sharing contract (PSC) with Myanma Oil & Gas Enterprise (MOGE) to explore oil and gas in the Rakhine Basin. CVX subsidiary Unocal Myanmar Offshore Co. Ltd. was granted exploration rights to the block, Block A5, in March of 2014.

Block A5 lies 200 km (124 miles) northwest of Yangon and spans more than 10,600 square kilometers (about 4,100 square miles), according to the company. Unocal Myanmar Offshore is the operator of the block with a 99% interest. Royal Marine Engineering, a Myanmar-based company, holds the remaining interest in the block, according to the company.

“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 subsidiaries hold a 28.3% non-operated working interest in a production sharing contract for the production of natural gas from the Yadana and Sein fields within Block M5 and M6 in the Andaman Sea. The Company also has a 28.3% non-operated interest in a pipeline company that transports the natural gas from Yadana to Myanmar-Thailand border for delivery to power plants in Thailand.

Shell sign three PSCs for offshore Myanmar blocks

Last month Shell (ticker: RDSA) and its partner Mitsui Oil Exploration Co. signed three exploration and PSCs with MOGE to operate three offshore deep-water blocks.

“Exploration is a pivotal step in the development of Myanmar’s energy sector, an industry that plays a key role in the economic growth of the country,” said H.E. U Zay Yar Aung, Union Minister for the Ministry of Energy.

Under the agreements, Shell will assess the potential of deep-water blocks AD-9 and AD-11 in the Rakhine Basin and MD-5 in the Thanintharyi Basin. The three blocks together cover some 21,000 square kilometers (about 8,100 square miles). They are located approximately 300 kilometers (186 miles) offshore in water depths ranging from 1,800 to 2,700 meters (5,905 to 8,858 feet).

Shell is the operator and has a 90% interest in the three contracts, with its partner Mitsui Oil Exploration holding the remaining 10% interest.

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