Oil&Gas:PTTEP GasDeal

[GWR]

Thread on the Shwe Gas Project and the possibility of gas pipelines to Thailand, China and India from the gasfields off Arakan State:

http://www.angkor.com/2bangkok/2bangkok/forum/showthread.php?p=17069#post17069

Specific posts:

http://www.angkor.com/2bangkok/2bangkok/forum/showpost.php?p=17062&postcount=47
http://www.angkor.com/2bangkok/2bangkok/forum/showpost.php?p=17069&postcount=49

[GWR]

This is the first time the Myanmar Times website has been updated since Cyclone Nargis:


Survey on 3rd Thai pipeline due in June
By Kyaw Thu

THE final report on the construction of a third Myanmar-Thailand gas pipeline will be completed at the end of June and presented to the Thai oil company PTTEP, said an official at a survey company on May 14.

U Thein Shwe, managing director of Geocomp Myanmar, which has been undertaking survey and reporting work, said completion of the feasibility study was initially scheduled for the end of May.

However, the report, named “Preliminary Pipeline Route Selection for Myanmar Block M9 “ was delayed due to the power cuts and blocked internet connections caused by Cyclone Nargis.

“Now we will go to Bangkok and finalise the report,” said U Thein Shwe. He said a team of five engineers would leave for Thailand next week.

According to U Thein Shwe, the proposed pipeline will carry natural gas from the offshore block M-9, which is operated by PTTEP of Thailand. PTTEP discovered the reserve in early 2007.

The Geocomp survey starts from the landfall area at Daminseik village, Tanintharyi Division in Myanmar to the Myanmar-Thai border at Ban-I-Taung. “The pipeline route is about 67 kilometres long and it will be near the existing Yadana and Yetagun gas pipelines,” he said.

“We have to study and compare the two existing pipelines and submit the final proposed and recommended pipeline rout to PTTEP,” he said, adding that the third pipeline must be as close as possible to the existing pipelines and servicing tracks for easy access.

The M-9 block is located about 300km south of Yangon.

The company expects to spend about US$1 billion to develop the M-9 field, where production will start in 2011 or 2012 for domestic use and export to Thailand.

PTTEP is also the operator and sole shareholder of five potential offshore oil and gas fields in Myanmar known as M3, M4, M7, M9 and M11, all located in the Gulf of Mottama.

http://www.mmtimes.com/no419/b002.htm

[GWR]

PTTEP signs deal to drill for gas in Gulf of Martaban
By Sucheera Pinijparakarn
The Nation
Published on June 25, 2008

PTT Exploration and Production (PTTEP) has signed a heads of agreement (HoA) with Myanma Oil and Gas Enterprise, paving the way for the drilling and supply of natural gas from offshore Block 9 to PTT, which could entail an investment of US$2 billion (Bt67 billion).

Under the HoA, a non-binding document outlining the main issues relevant to a tentative partnership, PTTEP's wholly owned subsidiary PTTEP International would drill natural gas from Block 9, so-called M9, in the Gulf of Mataban, Burma.

"This contract is of mutual interest and vital for Thailand's gas sourcing in response to increasing gas demand and an attempt to establish long-term energy security," said Energy Minister Poonpirom Liptapanlop.

The Energy Ministry estimated that Thailand's gas demand would expand from 3,600 million cubic feet per day (mcfpd) to 5,350 mcfpd in 2012 and over 7,300 mcfpd in 2021.

The signing marks two years of negotiation for Block 9 exploration. Under the HoA, average sales volume of natural gas from M9 will be 300 mcfpd. Around 240 mcfpd will be exported to Thailand and 60 mcfpd supplied to Burma. The gas price will be based on the existing price under the current Gas Sales Agreement between Burma and Thailand.

The conditions in the HoA will be the essence of the Gas Sales Agreement, expected to be concluded this year.

Thanatthep Chantakarn, an analyst at Bualuang Securities, said the M9 project would require an investment of around US$2 billion for the drilling and pipeline. The work is expected to be complete in the next three years and the company will start to realise revenue in 2012.

He also said that PTTEP told securities houses recently that it may seek partners for the subsidiary as the investment in the M9 project is huge. This could lead to a share dilution in PTT International.

"As the additional gas will be supplied to PTT, this will allow PTT to maintain retail gas prices in the future," he said.

Kitichan Sirisukarcha, an analyst at Kim Eng Securities (Thailand), said PTTEP would not realise revenue from the new investment until 2012.

http://www.nationmultimedia.com/2008/06/25/headlines/headlines_30076440.php