Shell to Start Oil Exploration This Month

The government had earlier invited tenders from international companies for onshore and offshore exploration of oil and gas and Shell won the rights for AD9 and AD11 offshore sites in Rakhine and the MD5 site in Tanintharyi.

Shell will partner with Japan-based Mitsui Oil Exploration Co Ltd. The Japanese group will also own 10 percent stake in all the sites won by Shell, according to Graeme Smith, VP Exploration Asia and Australia at Shell.

Shell and Mitsui concluded a production sharing contract with MOGE in February this year.

The Myanmar government would receive $61 million as a signature bonus plus $300,000 for supply of data. But Shell declined to answer queries whether the money had been paid.

MOGE earlier announced that it had not received the signature bonuses for the tenders opened in 2013 and 2014. During 2013 and 2014, 36 exploration sites were permitted – 16 onshore and 20 offshore.

The winners included US oil giant Chevron and companies from Italy, Canada, Brunei, France, Holland, Norway, Australia and Luxembourg.

Shell said it will invest $1.215 million in two and a half years for exploration work in the three sites.

Source: Myanmar Business Today

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