The Myanmar Investment Commission (MIC) has green-lighted a $50 million proposal to build an offshore oil and gas supply base in Ayeyarwaddy Division.
The facility at Nga Yoke Kaung Bay would provide berths for construction and supply vessels, warehouses, cranes and lifting equipment, helicopter rescue facilities and oil spill equipment and will play a crucial role in developing existing offshore oil and gas fields, such as near-by Block A-6, as well as in the exploration of future fields.
As part of the joint venture investment Myint & Associates Offshore Supply Base (M&AOSB), a subsidiary of energy services sector company Myint & Associates will construct the facility, while MPRL E&P will handle upstream gas exploration and production.
M&AOSB will invest $50 million in the project which will have a 30 year life-span and is predicted to generate K25 billion worth of state revenue within its first 10 years, said a press release.
“In the initial phase of the project, land renovation and other activities including ESIA and front end engineering… are expected to be implemented from June to November2017,” U Tint Swe, Executive Director, Government & Public Affairs, MPRL E&P, told Myanmar Business Today via email.
Construction of the supply base, located on 30 acre’s of company-owned land, will begin this December and is expected to be completed by the end of 2019, he said.
The approval of the facility by the MIC comes at a crucial time for possible future development of Block A-6 with MPRL E&P scheduled to begin drilling two back-to-back appraisal wells in June.
MPRL E&P made the first gas discovery in the Rakhine Basin offshore Block A-6 in 2012 and after partnering with Woodside and Total on the Shwe Yee Htun exploration campaign announced the discovery of a second in January 2016.
Source: Myanmar Business Today
