Deputy Minister for Electricity and Energy Dr. Tun Naing described joint oil and gas exploration and production projects between Myanma Oil & Gas Enterprise (MOGE) and North Petro Chem Corporation Ltd of China to yesterday’s meeting of the Amyotha Hluttaw.
The deputy minister said North Petro Chem Corporation Ltd signed a PSC with MOGE for PSC-F Block (Ngahlaingtwin area) on 16 June 2010 and started exploration on 9 September in Salin Township, Magway Region.
The test well is not as yet commercially viable, the deputy minister said, and the company is negotiating with another interested company for further exploration. If negotiations succeed NPCC will explore viability of natural gas extraction at Ngahlaing well no. 1. If oil and natural gas is discovered, according to the production sharing contract, Myanmar will receive 80 per cent of the yield including royalties, the deputy minister said.
The deputy minister also said the government will take steps to seize lands and provide compensation if necessary in order to exploit oil and gas resources according to Myanmar’s Farm Land Law.
Source: The Global New Light of Myanmar
