May 8, 2008
BANGKOK - PTT Exploration and Production (PTTEP) yesterday said it had signed a deal with Myanmar to begin production at gas wells off the south coast of the military-ruled nation.
Anon Sirisaengtaksin, the firm's CEO, said Myanmar's government -- currently reeling from a deadly cyclone -- signed an agreement with PTTEP in April to develop the gas reserves in the southwestern Gulf of Martaban.
"This agreement, which will be officially announced later, is significant. It means Myanmar approved Thailand as Myanmar's selected partner to move forward with the M-9 project," Anon said.
The deal follows PTTEP's successful gas exploration in its four wells in the so-called M-9 block in the Gulf of Martaban early this year.
"Thailand and Myanmar will sign a gas sales agreement by the end of this year. That will include details about gas sales prices," he added.
PTTEP, the sole operator of the M-9 block, expects the wells there to begin producing gas in 2012, according to AFP.
Most of its reserves will serve demand in Thailand.
Hungry for energy, Thailand imports about 20 percent of its gas from military-ruled Myanmar, and is vying for a bigger share of its impoverished neighbour's vast natural resources.
State media in Myanmar previously estimated the M-9 block contained 8.0 trillion cubic feet of gas.
According to 2006 official figures, 13 foreign oil companies are working on 33 projects in Myanmar.
