Thursday, April 30, 2015

Norwegian Government’s Statoil to get contract

Former Norway Envoy’s Telenor Move Raises Eyebrows
The signing of production-sharing contracts (PSC) for offshore oil and gas blocks is nearing its conclusion as the Norwegian oil giant Statoil is set to formalise its agreement tomorrow.

A total of 19 international oil companies were awarded rights for the exploration and production of oil and gas in 20 of 30 blocks in the 2013 offshore bidding round. Signing began last December.

Norway-based Statoil, partnering with US-based ConocoPhillips, will sign in Nay Pyi Taw a PSC for deepwater block AD-10 off Rakhine, said an official from the Ministry of Energy (MOE) yesterday.

No date has yet been given for the signing of the remaining contract, for shallow-water block M-7 which was awarded to Australian companies ROC Oil and Tap Oil.

Statoil and ConocoPhillips received permission from the Myanmar Investment Commission (MIC) in February for deepwater block AD-10, which has an area of 9000 square kilometres in depths of up to 2000 metres.

“This is a large and virtually unexplored area in a basin with a proven petroleum system and thick sedimentary deposits,” said Erling Vågnes, senior vice president for Statoil in a recent press release.

The Norwegian multinational oil and gas company is operating upstream activities in more than 30 countries worldwide. ConocoPhillips is the world’s largest independent E&P company based on production and proved reserves.

A total of 18 PSCs have been signed with Oil India, Ophir, Berlanga, BG Group, Woodside Energy, TRG, Canadian Foresight Group, Reliance Industries, Eni and Petrovietnam, as well as oil giants Chevron, Shell and Total.

Foreign capital brought in by the oil and gas sector amounts to nearly US$17 billion, including $2.6 billion in the 2014-15 financial year to end-January.