Current Situation and Oppotunities

Myanma Oil and Gas Enterprise

U Than TunDirector (Offshore)M.O.G.E

1st December 2014

Outline

• Ministry of Energy Organization Chart

• Myanmar Onshore and Offshore

Discoveries

• Business Milestones

• Commercial Outlook

• Business Opportunities

EPDENERGY PLANNING

DEPARTMENT

MOGEMYANMA OIL & GAS

ENTERPRISE

MPEMYANMA PETROCHEMI-

-CAL ENTERPRISE

MPPEMYANMA PETROLEUM

PRODUCTS ENTERPRISE

MOEMINISTRY OF ENGERGY

•POLICY FORMULATION•COORDINATION•PLANNING

•EXPLORATION,PRODUCTION AND TRANSPORTATIONOF CRUDEOIL, NATURALGAS

•OPERATE REFINERIES,FERTILIZER PLANTS, METHANOLPLANT, LPG PLANT,BITUMEN PLANT ANDCARBON DIOXIDE PLANT

•MARKETING ANDDISTRIBUTION OFPETROLEUM PRODUCTS

MINISTRY OF ENERGY ORGANIZATION CHART

4

MOGE

PLANNING EXPLORATION&

DEVELOPMENT

DRILLING PRODUCTION ENGINEERING ADMINISTRAT-ION

MATERIALPLANNING

FINANCE OFFSHORE

MANAGING DIRECTOR

Employees - about 10,000Daily production - about 16,000 barrels of oilabout 2000 million cubic feet of gasDrilling rigs - Deep Rig - 6

Medium Rig - 9 Total - 26Shallow Rig - 11

Total length of Natural gas pipeline - 2200 milesCNG filling stations - 45CNG vehicles - 27633Domestic natural gas supply - Daily average of 300mmcfd

OIL & GAS FIELDS OF MYANMAR (ONSHORE DISCOVERIES)

SR NO. OIL & GAS FIELDS YEAR OF DISCOVERY REMARKS1 YENANGYAUNG 1887 PRODUCING2 AYADAW 1893 PRODUCING3 CHAUK 1902 PRODUCING4 PAYAGON 1959 SUSPENDED5 MYANAUNG 1964 PRODUCING6 PYAY 1965 PRODUCING7 SHWEPYITHA 1967 PRODUCING8 PYALO 1969 SUSPENDED 9 MANN 1970 PRODUCING

10 LETPANDO 1974 SUSPENDED11 PEPPI 1976 PRODUCING12 HTAUKSHABIN 1978 PRODUCING13 HTANTABIN 1980 SUSPENDED14 KANNI 1985 PRODUCING15 APYAUK 1991 PRODUCING16 SHWEGU 1994 SUSPENDED17 KYAUKKWET / 1995 PRODUCING

LETPANDO18 INDAING 1996 SUSPENDED19 NYAUNGDON 1999 PRODUCING20 THARGYITAUNG/SABE 2001 PRODUCING

SHWE

Oil & Gas Fields Year Remarks• Apyauk 1991 Producing

(First discovered by Shell)• Kyaukkwet/Letpando 1995 Producing• Indaing 1996 Suspended• Nyaungdon 1999 Producing• Thargyitaung-Sabe 2001 Producing• Htangaing 2007 Producing

OIL AND GAS DISCOVERIES(a) MOGE's own exploration activities after 1988

Discovery Year Remarks• Apyauk 1990 by Shell Co.• Yetagun 1992 by Premier Oil• Shwepyihtay (M-9) 1997 by ARCO• Shwe (A-1) 2004 by Daewoo• Zawtika (M-9) 2004 by PTTEP• M-3 2011 by PTTEP

(b) Discoveries by foreign oil companies

1

2

4

5

3

Offshore Gas Projects in Myanmar

Existing Projects:Yadana Project: Exporting gas to Thailand

since 1998

Yetagun Project: Exporting gas to Thailand

since 2000

Shwe Project: Exporting gas to China and

Domestic Factories (First Gas in July 2013)

Zawtika Project: Exporting Gas to

Thailand and Domestic (First Export

Gas in August 2014)

Future Project:

Block M-3: New discovery

1

2

3

4

5

Upstream Factsheet

Daily Gas Production:

Onshore - 70 mmcfd

Offshore - 2.0 bcfd

Daily Oil Production:

Onshore - 8,300 barrels of oil

Offshore - 8,000 bbls of condensate

Export Gas to Thailand - 1.4 bcfd

Export Gas to China ‐ 0.4 bcfd

Domestic Utilization - 300 mmcfd

Blocks on Production Sharing Basis

Onshore: 53 Blocks

Offshore 51 Blocks

Total 104 Blocks

Type of Contract:

Mainly Production Sharing Contract

(PSC)

International Bidding round• 2nd Onshore bidding round launched in 17

January 2013

- 18 Blocks are offered- 16 blocks are awarded to winning Bidders. 14 blocks

have been signed and 2 blocks will be signed tomorrow.

• 1st Offshore bidding round has been launched in 11 April 2013

- 30 Blocks are offered - (19 Deep Water Blocks + 11 Shallow Water Blocks)- 20 blocks (Shallow 10 & Deep 10) were awarded to

winning bidders.

Company Block Field/Area

MPRL E&P Ltd MOGE-2 Mann oil fieldGoldPetrol IOR-2 Chauk oil field

MOGE-1 Yenangyaung oil fieldSINOPEC PSC-D MahudaungNobel Oil PSC-A Hukawng

PSC B-1 UyuPSC-E Myingyan

NPCC PSC-F NgahlaingtwinSNOG PSC-R MepaleGeoPetrol RSF-9 Pyalo-PaukkhaungPCM Inc RSF-2 Tuyintaung-Myaing(S)

RSF-3 Gwegyo-NgashandaungPTTEPI PSC-G Taungdwinggyi

EP-2 AunglanJubilant PSC-I HinthadaIstech Energy EP-5 Inbin-Tegyigon

ENI Myanmar B.V K YamethinRSF-5 Ondwe

PTTEP South Asia MOGE-3 Padaukpin-NatmiONGC B-2 Zebyutaung-Nandaw

EP-3 Thegon-ShweguBashneft EP-4 MayamanPacific Hunt C-1 Yenan-Indaw

PSC-H Taungoo-PyinmanaBrunei National EP-1 Kyaukkyi-MindonPetronas IOR-5 Htantabin

IOR-7 ShwePyiThaCAOG MOGE-4 MyintharMPRL IOR-4 Pyay

IOR-6 Myanaung

Total 30 blocks by 16 companies

Current Operating PSC Blocks

Company Block Field/Area

Daewoo Int'l Corp A1, A3, AD7 Rakhine offshoreMPRL A6 Rakhine offshoreCNPC AD1, 6, 8 Rakhine offshorePetroVietnam M2 Moattama offshorePTTEP M3, 9, 11 Moattama offshore

MD-7, MD-8Total E&P Myanmar M5, M6 Moattama offshorePCML M12, 13, 14 Moattama offshore

In offshore area, 18 blocks have been signed with 7 foreign companies

Further 20 blocks awarded and will be signed very soon.

Current Operating PSC Blocks (Offshore)

International Companies Upstream E&P

13

(Awarded offshore 20 blocks to be signed very soon)

Present-day Movements

Shallow Water Block Company1. A-4 BG/Woodside2. A-5 Chevron3. A-7 Woodside4. M-4 Oil India5. M-7 ROC Oil Co.6. M-8 Berlanga7. M-15 Transcontinental8. M-17 Reliance Industries9. M-18 Reliance Industries10. YEB Oil India Limited

Deep Water Block

1. AD-2 BG Exploration2. AD-3 Ophir Energy3. AD-5 Woodside4. AD-9 Shell5. AD-10 Statoil6. AD-11 Shell7. MD-2 Eni8. MD-4 Eni9. MD-5 Shell 10. YWB Total E&P Myanmar

Steering Committee Meeting is chaired by Dy Minister of Ministry of Energy and making decisions for PSC activities.

– Production Sharing Contract Management Committee• Monitoring Work program and budget of

operators• Monitoring Contractors’ commitments and

obligations.

– Technical Sub-Committee• Monitoring Contractors’ petroleum technical

activities

– Accounting Sub-Committee• Audit Team Onshore contractors must have MOGE

approval for Purchasing (or) Contracting petroleum services at price over 100,000 USD

Offshore contractors must have MOGE approval for Purchasing (or) Contracting at price over 300,000 USD

• Financial liability

– Procurement Sub-Committee• Procure with open tender system• Facilitating Import and Re-export of material for

PSC Contractors.• And Regularize the Exportation of natural gas.

Any interested parties are cordially invited

to invest in Myanmar exploration activities

• To include in Bidder List (registration) -the recognition by MOGE Technical Team.

• Presenting the companies’ capabilities and profile will have to be done for recognition

• Any official Letter to MOGE should be addressed to Managing Director of MOGE

•

THANK YOU And

WELCOME TO MYANMAR UPSTREAM IN DUSTRY

Responsible Business Activity

• New political and economic reforms– Tenders for petroleum blocks– Foreign Investment in services by tender

• The Government has desire to attract businesses with int’l Std.– ESHIA activities– Responsible activities

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Multiple Opportunities• Award of license for Exploration and

Production• Exploration tasks• Drilling• Infrastructures• Unconventional Prospects• LNG • JV

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• Businesses and individuals to invest in opening country

• Investment in our petroleum sector for mutual benefit.