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Monday, June 26, 2017

Oil and gas industry in Myanmar

Oil and gas industry in Myanmar

From Wikipedia, the free encyclopedia
Oil wells in Yenangyaung, 1910
Burma, officially known as Myanmar, is a developing country and an important natural gas and petroleum producer in Asia. It is home to one of the world's oldest petroleum industries, with its first crude oil exports dating back to 1853.[1] Today, the country is one of the major natural gas producers in the Asian continent.[2] Decades of isolation, sanctions, a lack of technical capacity, opaque government policies and insufficient investment has impeded the country's efforts to develop an upstream hydrocarbon sector.[3] Recent but slow political reform has led the international community to ease sanctions on Burma, giving rise to hopes of greater investment and economic growth.

 

History

Early British explorers in Burma discovered a flourishing oil extraction industry in the town of Yenangyaung in 1795.[4] The area had hundreds of hand-dug oil wells under the hereditary control of 24 Burmese families.
British Burma exported its first barrel of crude oil in 1853.[5] The London-based Burmah Oil Company (BOC) was established in 1871 and began production in the Yenangyaung field in 1887 and the Chauk field in 1902. BOC enjoyed a monopoly in the sector until 1901, when the American Standard Oil Company launched operations in Burma.[2] Oil supplies largely met the demand of British India. Prior to World War II and the Japanese invasion of Burma, oil production stood at 6.5 million barrels annually.[6] After independence in 1948, Burma continued to be one of the more prosperous nations in Asia due to its petroleum industry and agricultural exports.
In 1963, the socialist military government led by Ne Win nationalized the sector, causing decades of economic stagnation.[1]
After 1989, the military junta began opening up the country to more foreign investment. Shell discovered the Apyauk gas field 50 kilometres northwest of Yangon in 1991.[7]

Current status

Myanmar is today primarily a natural gas producer. As of 2015, Myanmar exports gas to Thailand and China.[3] Myanmar had proven gas reserves of 10 trillion cubic feet in 2012, with an annual production capacity of 416 BcF.[8] Oil reserves in 2013 numbered at 50 million barrels, with a production capacity of 21,000 bbl/d.[8] The Yenangyaung oil field continues to be in operation.
The country has classified 51 onshore blocks and 53 offshore blocks, including 26 deep water blocks, for oil and gas exploration.[6]
The National Energy Management Committee regulates the sector under the Ministry of Energy. The industry consists of three key state players:[2]
  • Myanma Oil and Gas Enterprise, created in 1963; responsible for exploration, production and domestic gas transmission through a 1,200-mile onshore pipeline network.
  • Myanma Petrochemicals Enterprise, operates small refineries and fertilizer plants
  • Myanmar Petroleum Products Enterprise, responsible for retail and wholesale distribution of petroleum products
Major international oil companies (IOCs) engaged in Myanmar include Total S.A., the Essar Group, CNOOC, Petronas and Sinopec.[9]
Local companies such as Parami Energy Group and MPRL are some who are leading players in this field. According to Kwong Weng Yap, Chief Operating Officer of Parami, he said in a speech to the ASEAN community that the Myanmar oil and gas industry requires a clean government and local inclusion for it to be sustainable in the near term.[10]
The downstream distribution network in Myanmar remains very under-developed.














    Myanmar Oil & Gas Enterprise (MOGE)

    1. 1. July, 2011
    2. 2. Block Map of Myanmar MOGE Aggressive Exploration Programme ♣ To explore & produce oil and gas in onshore areas for self- self- sufficiency ♣ To oversee and cooperate the PSCs in Offshore areas
    3. 3. OIL & GAS FIELDS OF MYANMAR (ONSHORE) SR NO. OIL & GAS FIELDS YEAR OF DISCOVERY REMARKS 1 YENANGYAUNG 1887 PRODUCING 2 AYADAW 1893 PRODUCING 3 CHAUK 1902 PRODUCING 4 PAYAGON 1959 SUSPENDEDSHWE 5 MYANAUNG 1964 PRODUCING 6 PYAY 1965 PRODUCING 7 SHWEPYITHA 1967 PRODUCING 8 PYALO 1969 SUSPENDED 9 MANN 1970 PRODUCING 10 LETPANDO 1974 PRODUCED FOR 2 YEARS & SUSPENDED 11 PEPPI 1976 PRODUCING 12 HTAUKSHABIN 1978 PRODUCING 13 HTANTABIN 1980 SUSPENDED 14 KANNI 1985 PRODUCING 15 APYAUK 1991 PRODUCING 16 SHWEGU 1994 SUSPENDED 17 KYAUKKWET / 1995 PRODUCING LETPANDO 18 INDAING 1996 SUSPENDED 19 NYAUNGDON 1999 PRODUCING 20 THARGYITAUNG/SABE 2001 PRODUCING
    4. 4. Crude Oil andNatural Gas ReservesProved RecoverablePetroleum Reserves(as at 1-4-2006) 1-Location Crude Natural Oil Gas (MMBBL) (BSCF)Onshore 115.116 309.651Offshore 100.892 15,845.000
    5. 5. Concession Blocks 3 TYPES OF BLOCKS  EXPLORATION / PRODUCTION ( EP ) / (PSC)  IMPROVED PETROLEUM RECOVERY ( IOR ) PERFORMANCE COMPENSATION CONTRACT (PCC)  REACTIVATION OF SUSPENDED FIELDS ( RSF ) Type of Block No. of Blocks Remarks PSC & EP 36 (Onshore) Exploration PSC 25 (Offshore) Areas IOR / PCC 7 (Onshore) Improved Oil Recovery RSF 10 (Onshore) Marginal Field Development ---------------------------------------------------------------------- Total 53 Blocks (Onshore) 25 Blocks (Offshore-Shallow Water) 26 Blocks (Offshore-Deep Water) -----------------------------------------------------------------------
    6. 6. OTHER OIL COMPANIES ACTIVITIES
    7. 7. Current Onshore Activities by Companies Company (Operator) Block/Area MPRL (Myanmar) MOGE- MOGE-2(N) (Mann Field) Goldpetrol (Indonesia) MOGE- MOGE-1 (Yenangyaung Field) IOR- IOR-2 (Chauk Field) SINOPEC (China) PSC- PSC-D (Mahudaung) CNOOC (China) PSC- PSC-C1 (Indaw) PSC- PSC-C2 (Shwebo- (Shwebo- Monywa ESSAR Group (India) PSC- PSC-L (Sittway) Silver Wave (Singapore) (Singapore) PSC- PSC-B2 (Nandaw- Nandaw- Zebyutaung) Zebyutaung) N
  1. obel Oil (Russia) Russia) PSC- PSC-A (Hukaung) Hukaung) PSC- PSC-B1 (Uyu) Uyu) North Petrol (China) PSC- PSC-F (Ngahlaingdwin) (Ngahlaingdwin) SNOG & UPR (Singapore) Singapore) PSC- PSC-R (Mepale) Mepale) NOTE : In onshore area, 12 contracts have been signed with 9 foreign companies. Some onshore blocks are kept reserve for MOGE some will be opened very soon.
  2. 8. Current Offshore Activities by Companies COMPANIES (Operator) BLOCKS TOTAL M-5, M-6 (Yadana) M- PETRONAS Carigali M-12, M-13, M-14 M- M- (Yetagun) DAEWOO A-1 (Shwe), A-3, AD-7 A- AD- PTTEP M-3, M-7, M-9, M-11 M- M- M- CNOOC A-4, M-10 M- ESSAR A-2 Ngwe Oil & Gas M-8 Twinza Oil YEB MPRL E&P A-6 Rimbunan & UNOG M-1 CNPC AD- AD- AD- AD-1, AD-6, AD-8 Petrovietnam & UNOG M-2 Petronas Carigali MD- MD- MD- MD-4, MD-5, MD-6 KMDC & BOC A-5, A-7, M-15, M-16 A- M- M- In the offshore area, 29 contracts have been signed with 14 foreign companies for 30 offshore blocks. 3 shallow water blocks are available for exploration & development and 19 new deep water blocks are open for new investors. OPEN OFFSHORE BLOCKS  Original Open Blocks : M-4, M-17, M18 M- M-  Newly Open Deep Water Blocks : 19 Blocks
  3. 9. Major Offshore Projects in Myanmar Offshore
  4. 10. YADANA GAS PROJECT SUMMARYLOCATION : MOATTAMA OFFSHOREBLOCKS : M-5 / M-6 M-SELLERS : TOTAL 31.24 % UNOCAL 28.26 % PTTEP 25.50 % MOGE 15.00 %BUYER : PTT PlcRESERVES : 6.5 TCFEXPORT DCQ : 525 MMCFD / 565 MMCFDDOMESTIC GAS : 125 MMCFDOFFSHORE FACILITIES : WELL HEAD PLATFORM 1 ( 7 WELLS ) WELL HEAD PLATFORM 2 ( 7 WELLS ) WELL HEAD PLATFORM 3 ( 2 WELLS ) PRODUCTION PLATFORM LIVING QUARTER PLATFORM FLARE PLATFORMONSHORE FACILITIES : PIPELINE CENTER METERING STATIONPIPELINES : 216 MILES 36” PIPELINE ( OFFSHORE ) 39 MILES 36” PIPELINE ( ONSHORE )START OF GAS EXPORT : 1998PROJECT COST : 1200 MM$
  5. 11. Yadana Project (Block M-5, M-6) M- M- HORI ZON GRIDS YADANA FIELD Top of the Carbonates Time map ( ms TWT )RESERVES : 6.5 TCF EXPORT DCQ : 525 MMCFDSTARTED GAS EXPORT : 1998 PROJECT LIFE : 30 YEARS
  6. 12. Yadana Project (Block M-5, M-6) M- M-After developing Sein Satellite Field in March 2006, 40 mmcfd of gashad been produced for domestic use.
  7. 13. YADANA GAS PROJECT• LOCATION : MOATTAMA• OFFSHOTIORE• BLOCKS : M-5/M-6 5/M-• SELLERS TOTAL 31.24% UNOCAL 28.26 % PTTEP 25.50% MOGE 15.00 % RESERVES : 6.5 TCF EXPORT DCQ : 565 MMCFD DOMESTIC GAS : 200 MMCFD OFFSHORE FACILITIES WELL HEAD PLATFORM 1 (7 WELLS) WELL HEAD PLATFORM 2 (7 WELLS) PRODUCTION PLATFORM LIVING QUARTER PLATFORM FLARE PLATFORM MEDIUM COMPRESSION PLATFORM ONSHORE FACILITIES : PIPELINE CENTER MEETING STATION PIPELINES 216 MILES 36” PIPELINE(OFFSHORE) 39 MILES 36” PIPELINE(ONSHORE) 95 MILES 24” PIPELINE(OFFSHORE) TO DAW NYEIN FOR DOMESTIC, IN 2010 START OF GAS EXPORT : 1998 PROJECT COST : 1200 MM$
  8. 14. YETAGUN GAS PROJECT SUMMARYLOCATION : TANINTHARYI OFFSHOREBLOCKS : M-12 / M-13 / M-14 M- M-SELLERS : PETRONAS 40.75 % NIPPON 19.40 % PTTEP 19.40 % MOGE 20.45 %BUYER : PTT PlcRESERVES : 4.16 TCFEXPORT DCQ : 200 / 260 / 400 MMCFD ( ABOUT 30 BL CONDENSATE / MMCF )OFFSHORE FACILITIES : DRILLING PLATFORM ( 6 WELLS +4 ADDITIONAL) PRODUCTION PLATFORM FSOONSHORE FACILITIES : PIPELINE CENTER METERING STATIONPIPELINES : 126 MILES 24” PIPELINE ( OFFSHORE ) 42 MILES 24” PIPELINE ( ONSHORE )START OF GAS EXPORT : 2000PROJECT COST : ABOUT 700 MM$
  9. 15. Yetagun Project YN Yetagun NE YETAGUNRESERVES : 4.16 TCF EXPORT DCQ : 400 MMCFD ( ABOUT 30 BL CONDENSATE / MMCF )STARTED GAS EXPORT : 2000 PROJECT LIFE : 30 YEARS YETAGUN NO. 2 YETAGUN EAST NO. 1 Depth (feet) East-West structural cross-section of the Yetagun Field
  10. 16. Current Offshore Activities
  11. 17. Block A-1 (Shwe) Gas Discovery A- RESERVES (Shwe / Shwe Phyu / Mya) : 4.794 ~ 8.632 TCF• Recent gas discovery in Block A-1 proves the commercial gas accumulation A- in Rakhine offshore area.• In very near future it will become another gas project playing an important role in oil & gas sector of Myanmar.
  12. 18. Shwe Project ( Gas from Blocks A-1 & A-3 ) A- A-
  13. 19. ZAWTIKA EXPORT PIPE GAS PROJECT• Located 300 km south of Yangon and 240 km Zawtika Development Project west of Tavoy 220-260 Km. 220- 72 Km.• New 230 km offshore & 72 km onshore 28” pipelines to PTT 42” P/L at Ban-I-Tong. Ban- Pipeline Operating Metering Center Station• Planned DCQ at 300 MMscfd• Dom- Dom- 60 MMcfd + Export 240 MMcfd Block : M-9 Gas Reserve : 1.44 tcf (Drilled Reserve) DCQ : 250 mmscfd (export)/ 60 mmscfd (domestic) Sellers : PTTEP / MOGE Buyer : PTT 1st Gas : 2015 Location map of Prospects in Block M-9 GTK-1 KKN-1 UGGA-1 KKN-2 ZTL-1 KKN-3 ZTK-8 ZTK-5 ZTK-1 ZTK-4 SPH-1 ZTK-3 ZTK-7 ZTK-6 ZTK-2
  14. 20. Block A-1 and A-3 Prospects A- A- Shwe Nilar 1 Shwe Nilar 2Shwe DiscoveryShwe Phyu DiscoveryShwe Nilar ProspectNgwe North ProspectMya Discovery Block A-3 (Mya Discovery) A- Block A-3 A- RESERVES : 1.5 ~ 3.9 TCF
  15. 21. Options for Blocks A-1 & A-3 Gas Utilization A- A- Possible Pipeline routes1. Pipe gas to neighboring countries (option 1,2,3 & 4)2. LNG 3 23. Special Economic Zone (SEZ gas base) at nearby 1 landfall 4
  16. 22. Prospects & Lead DRILLING PROGRAMME IN BLOCK A-3 A-3, MYANMAR A- BLOCKS  Water Depth Map with Mya Discovery & other Prospects 1000m 500m MYA Well 1 discovery Mya Well 2 (appraisal) Mya Well 3 (appraisal)1500m Prospect KYAUK SEIN Well #1 (exploration) Lead A Prospect THANDAR Provisional well #1 Wells to be drilled in early 2007
  17. 23. Shwe Pyi Htay Discovery Block M-9 M-Gas Reserves : 260 BCFTested in Well Shwe Pyi HtayWell 1 Production ~ 25 mmcfd gas
  18. 24. Zawtika well Discovery NW 1190 1100 1000 900 800 SE 199 414 646 AMP-1 897 TWT (ms) H10 AMP-2 1168 H20 AMP-3 H30 AMP-4 1462 Zawtika Well 1 AMP-5 1780 Cross section H40 2124 H50 2495 TOTAL ACTUAL H60 DEPTH 2085 M 2896 H70 Proposed TD 3000 mTVD-MSL 3327 3798 0 5 LOW HIGH KILOMETER• Zawtika-1 was drilled to 2085 meter and encountered 7 significant gas reservoirs with estimatedreserves from mud log ranging from 435 to 1058 BCF, mean case 730 BCF.• PTTEPI technically believed that after the discovery of Zawtika-1, potential reserve is estimated43 TCF in block PSC-M9.
  19. 25. ZAWTIKA EXPORT PIPE GAS PROJECT• Located 300 km south of Yangon and 240 km west of Tavoy• New 230 km offshore & 72 km onshore 28” pipelines to PTT 42” P/L at Ban-I-Tong. Ban-• Planned DCQ at 300 MMscfd• Dom- Dom- 60 MMcfd + Export 240 MMcfd Location map of Prospects in Block M-9 M- GTK -1 KKN-1 UGGA-1 KKN-2 ZTL-1 KKN-3 ZTK-8 ZTK-5 ZTK-1 ZTK-4 SPH-1 ZTK-3 ZTK-7 ZTK-6 ZTK-2
  20. 26. Location map of Prospects in Block M-9 M-The second drilling campaign focused only on M9 to evaluate HC potential inthree areas, M9W, M9C and M9NE with the encouraging drilling plan of 7 wellsby end 2007.Zatila # 1 drilled in western part of Block M-9 discovered and some amount ofcondensate and gas.
  21. 27. Location map of Prospects in Block M-15/16/17/18 M-TANINTHAYI OFFSHORE AREA BLOCK M-15/M-16/M-17/M-18 Galon MORE THAN 25 TCF GAS IN NEW PROSPECTS Nagar ESTIMATED BY PCML EXPLORATION DRILLING IN GALON ON 21 SEPTEMBER,2006 Hintha
  22. 28. Galon- Galon-1in Block M-16 M-
  23. 29. Nagar- Nagar-Ain Block M-16 M-
  24. 30. Chinthe- Chinthe-Ain Block M-17 M-
  25. 31. Hinthar- Hinthar-Ain Block M-18 M-
  26. 32. List Of The Foreign Oil Companies Awarded For PSC and Current StatusSr. Company Name Block No. Date of Contract Remark1. Petronas Carigali M-12,13,14 3- 3-5-1990 Exporting gas to PTT2. Total M-5,M-6 5,M- 9-7-1992 Exporting gas to PTT3. Daewoo A-1/A-3 1/A- 4-8-2000/ 18-2-2004 18- Development AD- AD-7 25- 25-2-2007 Exploration4. Petronas MD- MD-4,5,6 21- 21-1-2010 Exploration Period5. PTTEPI M-7,M-9 7,M- 12-11- 12-11-2003 Development6. CNOOC A4,M- A4,M-10 14-12- 14-12-2004 Exploration7 ESSAR A-2 7-5-2005 Exploration8. PTTEPI M-3/M-11 3/M- 7-8-2004 Exploration 25- 25-7-20059. TWINZA YEB 9-11-2006 11- Exploration10. NGWE M-8 15- 15-9-2006 Exploration11. Rimbunan M-1 9-3-2007 Exploration12. Petro Vietnam M-2 2-10-2008 10- Exploration13. MPRL A-6 18- 18-1-2007 Exploration14. CNPC AD- AD-1/6/8 15- 15-1-2007 Exploration15. Petronas/UNOG Petronas/UNOG MD- MD-4/5/6 2-10-2008 10- Exploration16. KMDC M-15/M-16 15/M- 20- 20-1-2011 Study Period A-5,A-7 5,A-
  27. 33. MOGE OTHER ACTIVITIES
  28. 34. NATURAL GAS MARKET About 2000 miles of gas pipeline were constructed in onshore by MOGE pipeline team. Pipeline size varies from 6" to 20". Onshore Gas Pipeline Offshore Gas Pipeline
  29. 35. CNG / NGV PROGRAMME IN MYANMAR  Initiated in Myanmar since 1986.  1986 – August 2004 : - 5 CNG Refueling Stations - - 2 in Yangon City - 2 in Yenangyaung Field - 1 in Chauk Field - 587 NGVs (Converted from petrol buses)  CNG / NGV Programme was reactivated in August 2004 and Widely used in 2005.  As at June 2011 : - 45 CNG Refueling Stations in Myanmar- - 40 in Yangon City - 2 in Mandalay City - 2 in Yenangyaung Field - 1 in Chauk Field - About 27472 NGVs (Converted from both petrol / diesel vehicles)  Future : CNG Refueling Stations will be installed along the existing domestic pipeline corridor. 9
  30. 36. CNG / NGV PROGRAMME IN MYANMAR (Continued)  In Yangon City (up to June 2011): - Refueling Stations in Operation: 40 * 1 in Mother Station (Ywama) * 6 in Daughter Stations * 33 and Alone Stations  The NGV Conversion is continuing. 1 0
  31. 37. Regional Cooperation
  32. 38.  Myanmar in Regional Co-operation Programme Co-Trans-Trans-ASEAN Gas Pipeline (TAGP) MYANMA RMyanmar contribute to certain extent the energy supply requirementsof ASEAN, BIMSTEC, GMS and ACMECS in terms of natural gas.
  33. 39. Investment Opportunitiesin Petroleum Exploration Sector in Myanmar
  34. 40. Newly Demarcated DeepWater Blocks- Rakhine Offshore Area 14 Blocks ( AD-2 to AD-5, AD-9 to AD-18 ) AD- AD- AD- AD-- Moattama/Tanintharyi Offshore Area 2 Blocks ( MD-7, MD-8 ) MD- MD-OPEN OFFSHORE BLOCKS- Shallow Water Open Blocks : M-4, M-17, M18 M- M-- Newly Open Deep Water Blocks : 19 Blocks
  35. 41. Deep Water BlocksRakhine Offshore (Arakan Deep) – 10 Blocks. Sr. Block Area / Water Depth No. Name Sq. Miles ft (m) 1. AD - 1 1,042 1,500 -> 6,000 (457m - > 1,829m) 2. AD - 2 3,127 > 6,000 (> 1829m) 3. AD - 3 3,822 > 6,000 (> 1829m) 4. AD - 4 4,077 > 6,000 (> 1829m) 5. AD - 5 4,077 > 6,000 (> 1829m) 6. AD – 6 373 17 – 295 (5.18m - 89.91m) 7. AD – 7 650 295 - 4590 (89.91m – 1395.98m) 8. AD - 8 2,000 3280 - 6560 (979.56m – 1995.13m) 9. AD - 9 3,011 3280 -> 6,560 (979.56m -> 1995.13m) 10. AD - 10 3,500 > 6,560 (> 1995.13m)
  36. 42. Deep Water Blocks (Cont.)Moattama & Tanintharyi Offshore (Moattama Deep) – 8 Blocks.Sr. Block Name Area / Water DepthNo. Sq. Miles ft (m) 1. MD - 1 3,262 > 6,000 (> 1829m) 2. MD - 2 3,988 1,500 -> 6,000 (457m - > 1,829m) 3. MD - 3 5,135 600 -> 6,000 (183m - > 1,829m) 4. MD - 4 2,278 3,000 -> 8,000 (914m - > 2,439m) 5. MD - 5 2,452 6,000 -> 9,000 (1,829m - > 2,744 m) 6. MD - 6 2,683 6,000 -> 10,000 (1,829m - > 3,049m) 7. MD - 7 3,011 3,000 -> 10,000 (914m - > 3,049m) 8. MD - 8 2,510 2,500 -> 9,000 (762m - > 2,744m)
  37. 43. Any interested parties are cordially invited to invest in Myanmar offshore exploration.• Brief data over-view of the blocks could over- be done with MOGE technical team at free of charge.• Interested blocks should be applied to Ministry of Energy or Energy Planning Department for direct negotiation at any time.

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