Tap Oil signs PSC for block offshore Myanmar

Tap Oil Ltd. reported its entry into Myanmar following the signing of the production-sharing contract for shallow-water Block M-7 in the Moattama basin offshore Myanmar. Tap holds 95% participating interest in the block and has assumed operatorship.

Tap Energy (M7) Pte. Ltd. and its local joint venture participant Smart E&P International Co. Ltd. signed the PSC with Myanmar Oil & Gas Enterprise (MOGE) on Aug. 26.

Under the PSC, the JV partners have agreed to undertake an 18-month environmental and social impact assessment and study period followed by an option to proceed to a 3-year commitment exploration work program.

Tap anticipates that it will spend $2.75 million on the block up to and including the study period, which has a minimum expenditure requirement of $2 million.

The 13,372-sq km Block M-7 lies 160 km east of the 6.5-tcf Yadana gas field, and 70-km north east of the 1.5-tcf Zawtika gas field.