UK-based Penspen has won an engineering study contract related to an offshore production area in Myanmar, according to a company press release.
No details were disclosed about the contract. Additionally, it was not specified which operator has hired Penspen.
The work involves a feasibility study and preliminary engineering to modify redundant diesel drilling fuel tanks into storage tanks for condensate.
Penspen will conduct 3D modelling and mechanical integrity checks for the project. It will also review the safety of existing designs and lighting.
According to the press release, works are to begin in Q2 2020, meaning they will likely begin this month.
Penspen’s Executive Vice President for the Middle East, Africa and Asia Pacific Neale Carter said “This project is significant, and we look forward to playing our role in ensuring its success by providing our expert engineering and maintenance services to the operator in Myanmar”.
Myanmar has four offshore areas: Yetagun, Yadana, Zatika and Shwe.
Yetagun offshore area encompasses the M-12 and M-14 blocks. It is operated by Malaysia’s Petronas (40.9%), with PTTEP (19.3%), Japan’s Nippon Oil Exploration (19.3%) and MOGE (20.5%) also holding stakes.
We note it is the only one of Myanmar’s offshore areas currently producing condensate in addition to gas. In 2019, average sales volumes for Yetagun were 105 million cubic feet per day (mmcfd) and 2,300 barrels of condensate per day.
Yadana offshore area is composed of the M-5 and M-6 offshore blocks, and it is operated by France’s Total (31.2%). Thailand’s PTTEP (25.5%), the USA’s Chevron (28.3%) and the Myanma Oil and Gas Enterprise (MOGE) (15%) also hold stakes. Average sales volumes in 2019 were 776 mmcfd of gas.
The M-9 offshore block comprises Zawtika offshore area. PTTEP operates and holds an 80% stake in M-9, with MOGE holding the other 20%. Average gas sales volumes for Zawtika in 2019 were 297 mmcfd.
Most of the production from the three areas is sold to Thailand, while a portion is also reserved for domestic use.
Shwe offshore area includes the A-1 and A-3 blocks. It is operated by South Korea’s POSCO International, which holds a 51% stake. Other stakeholders include India’s ONGC (17%), MOGE (15%), India’s GAIL (8.5%) and Korea’s KOGAS (8.5%).
Average gas sales volumes for Shwe in 2019 were almost 594 mmcfd. Most of its production (around 80%) is exported to China via the Southeast Asia Gas Pipeline.