Oil India signs contract for two oil blocks in Myanmar

Oil India Ltd, the second largest state explorer, has signed contract for two offshore oil and gas blocks it had bagged in Myanmar.

OIL along with its consortium partners signed Production Sharing Contract (PSC) with Myanma Oil and Gas Enterprise (MOGE) for two offshore blocks M4 and YEB at Nay Pyi Taw, the company said in a statement on Saturday.

OIL-led consortium won these blocks under Myanmar offshore bidding round 2013 which was launched on April 11, last year.

A total of 30 blocks (11 shallow water and 19 deepsea) were put on offer in this bidding round. OIL and partners bid for three offshore blocks M-4, M-8 and YEB and won two of them.

OIL is the operator with 60 per cent interest in both the blocks. Other consortium partners are Mercator Petroleum Ltd (25 per cent), Oilmax Energy Pvt Ltd (10 per cent), and Oil Star Management Services Co Ltd (a local company of Myanmar with 5 per cent stake).

Block M-4 with an area of 4008 square miles in water depth of less than 600 feet is located in Moattama Basin, while other block YEB with an area of 8223 sq miles in water depth of less than 600 feet is located in Thanintharyi Basin.

OIL General Manager (Business Development) P.K. Sharma signed the PSC while MOGE Managing Director U Myo Myint OO signed the contract at a ceremony in Nay Pyi Taw on December 4, the statement added.