11 August 2014, Monday, 18:09

Bashneft will be engaged in exploration works in Myanmar

author: Iliya Spiridonov

Bashneft International B.V. , a wholly owned subsidiary of JSOC Bashneft, signed a Production Sharing Contract (PSC) for oil BlockЕР-4 with Myanmar Oil and Gas Enterprise (MOGE). As Bashneft press-service informs, the signing bonus will total US$ 4 million.

These project includes two participants. Bashneft International B.v. is the operator of the project, holding a 90% stake, and Sun Apex Holdings Ltd from Myanmar holds the remaining 10%.

Under the contract terms partners shall implement a three-year geological exploration program, which provides for seismic surveys and drilling of two exploration wells. Investments in the geological exploration program will amount to US$ 38.3 million.

Block EP-4 with the area of 841 sq. km is located in the central oil-and-gas bearing basin of Myanmar  with well-developed oil and gas transportation and processing infrastructure. 2D seismic surveys covering 132 linear km have been conducted at the site, and three prospecting wells have been drilled. While these works six promising oil-bearing formations were uncovered.

Bashneft gained the right to conclude the Production Sharing Contract for Block ЕР-4 in October 2013, when it won the Onshore Blocks Second Bidding Round conducted by the Ministry of Energy of Myanmar.