Australian group enters oil and gas sector
The Minister of Energy, Brigadier-General Lun Thi, (L) and Twinza chief executive Bill Clough (R) pose with Myanmar and Australian flags during the signing ceremony of Twinza subsidiary Danford Equities Corporation’s exploration and production sharing agreement, in Nay Pyi Taw, November 9. The Australian firm inked a deal with the Myanma Oil and Gas Enterprise for rights to the Yetagun East Block in the Gulf of Martaban. Pic: Wai Linn
AN Australian-led consortium became the latest player in Myanmar’s highly prospective oil and gas sector when it inked an offshore exploration and production sharing agreement last week in the capital Nay Pyi Taw.
Covering almost 21,000 square kilometres (8000 square miles), the Yetagun East Block (YEB) is located amidst shallow waters in the far south of Myanmar in the Gulf of Martaban, adjacent to the towns of Dawei and Myeik.
At the signing ceremony, Twinza CEO Bill Clough said his company’s philosophy would be one of aggressive exploration and, if viable, rapid commercialisation of the field. He expressed hope this would make a significant contribution to addressing the national energy balance.
“We are very excited to be the only independent to now be involved in the offshore hydrocarbon sector, it being the most important and dynamic industry in the country.
“Along with the necessary investment, we are looking forward to bringing in new, advanced technology, creating job opportunities for Myanmar people and contributing to the thorough assessment of the national resource base,” he said at the signing ceremony at the Kamudra hotel in Nay Pyi Taw on November 9.
Twinza Oil is the parent company of Danford Equities Corporation, the vehicle being used for the venture with the Ministry of Oil and Gas Enterprise (MOGE).
Presiding over the signing function was the Minister of Energy, Brigadier-General Lun Thi. Also attending included Maj-Gen Saw Lwin, Minister of Industry 2; Maj-Gen Hla Tun, Minister of Finance and Revenue; Brig-Gen Thein Zaw, the Minister for Communications, Posts and Telegraphs, Brig-Gen Maung Maung Thein, the Minister of Livestock and Fisheries, and executives from MOGE.
In a speech, Minister Lun Thi said the search for a sustainable and secure supply of energy for Myanmar was a priority.
“Myanmar has abundant natural resources which need to be tapped. The Yadana, Yetagun and Shwe fields are proven fields, but there exist many oil and gas areas awaiting exploration, and the recent successes of the Daewoo Company of South Korea, which had discovered significant gas reserves in the Rakhine offshore blocks of A-1 and A-3, show the area’s potential.
“Petronas Carigali of Malaysia is also carrying out detailed studies near the Yetagun gas field and is planning to drill more wells to develop natural gas reserves in the Hintha structure of Block M-18.”
He said the Ministry of Energy would provide every assistance and support to the Twinza venture and that he hoped hydrocarbons would be discovered in a short time.
Mr Clough said the Twinza team would include international and local experts in the oil and gas sector in Myanmar.
“I have specifically put together a team of national and international experts who bring to the project a dynamic, results-oriented approach using international-standard best practices. We have a successful track record, relevant talent and experience – which includes many years of understanding within the Myanmar hydrocarbon sector.
“Furthermore, we have developed a close relationship with the ministry over time and an in-depth understanding of the specific challenges of operating in Myanmar,” Mr Clough said at the signing ceremony.
Mr Clough, whose family hold a significant shareholding in the Australian publicly-listed Clough Engineering Group, has extensive experience in building offshore oilfield developments in diverse and challenging environments including Thailand, India, Pakistan, Papua New Guinea, Indonesia and Australia.
He said his team was familiar with the geology of the area and he was confident of being able to identify suitable reservoir structures as hydrocarbon reserves had already been found in adjacent areas to YEB.
“We know that there is an abundance of existing data covering this area, including thousands of kilometres of seismic data and data from two wells drilled in the early 1990s, as well as numerous geological and geophysical reports. Although we have a formidable task during the study period, we remain confident of success.
“As a geologist, I can tell you; my sense is that there are considerable commercial hydrocarbons to be discovered in this, the Yetagun East Block,” he said.