INTRODUCING MYANMAR’S OFFSHORE OIL & GAS ARENA

THAN TUN (DIRECTOR-OFFSHORE) MYANMA OIL & GAS ENTERPRISE

MINISTRY OF ENERGY

CONTENT

• Production

• Current Exploration Status and Appraisal Drilling

• Key Projects in Myanmar Offshore

• Basic PSC Model

• Challenges and lesson learnt

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2004

YDNA

YTG

SHWE

Total

GAS PRODUCTION

DAEWOO(A1/A3) SHWE PRODUCTION STARTED ON 15 July 2013 CURRENT – 400 MMCFD, DCQ 500 MMCFD ( 100 Dom + 400 Export), in 2015 PTTEPI(M-9) ZAWTIKA PRODUCTION STARTED ON 15 Mar 2014 (Dom) / 5 Aug (Export) CURRENT – 345 MMCFD, DCQ (100 Dom + 240 Export)

YRA

RLY

PR

OD

UC

TIO

N IN

MM

CF

Total Daily Average Production = 2000 mmcf/d Export – 1650 mmcfd, Dom -350 mmcfd

DCQ- 565 MMCF

DCQ- 400 MMCF

DCQ- 500 MMCF

ZTK DCQ- 340 (MMCF) 2014

0

500

1000

1500

2000

2500

2009 2014 2017 2020

ZAWTIKA

SHWE

YETAGUN

YADANA

LAND

0

500

1000

1500

2000

2500

2009 2014 2017 2020

ZAWTIKA

SHWE

YETAGUN

YADANA

LAND

FUTURE MYANMAR GAS PRODUCTION FORECAST

1280

2000 2080

> 2250

DA

ILY

GA

S V

OL

UM

E (

millio

n c

u f

t )

Additional Gas In

(M-3+M9)

Additional Gas In

(A3)

YEAR LAND YADANA YETAGUN SHWE ZAWTIKA TTL

2009 80 800 400 0 0 1280

2014 60 850 390 400 300 2000

2017 80 850 300 500 350 2080

2020 100 800 250 600 500 2250

Additional Gas In

(M6E)

CURRENT EXPLORATION STATUS

PSC Company Block Status

Daewoo A1, A3 Develop/Expl

AD7 Exploration

MPRL A6 Exploration

Petro Vietnam M-2 Exploration

PTTEPI M3/ M11 Exploration

M9 Develop/Expl

MD-7/MD-8 Study

TEPM M5,M6 Prod/Expl

PCML M12, 13, 14 Prod/Expl

CNPC AD-1, 6, 8 Exploration

7 Companies, 18 Blocks

26 Shallow-water

25 Deep-water

2014-15 EXPLORATION WELLS PROVEN RESERVES

GAS - 20 Tcf CONDENSATE – 85 MMSTB

OFFSHORE PROSPECTS

• CNPC - 2 Wells

• PVEP - 1 Well

• TEPM - 1 Well

• PCML - 1 Well (Drilled)

SEISMIC SURVEY PROGRAM

In M-11, 3D Seismic 2700 Sq.Km will be acquired in 2015

New PSC blocks seismic Survey will be started in 2015.

To organize to smooth Seismic Operation of PSC operators to meet target schedule .

About 65% of Shallow

area have proven HC

EXPLORATION DRILLING

In Block M-6, TEPM is studying all the

Prospects for exploration drilling.

In 2015, some exploration wells will be

Drilled in M-6 East Pliocene Prospect

and 3CA Carbonate Trend

In Block A-6, MPRL is preparing

to drill deep-water prospect at

about 2000m water depth.

Target is Pliocene channel

complex Sandstone.

Prospect size is about 110 SqKm

APPRISAL DRILLING BY PTTEPI

In Block M-3, 5 Appraisal Wells will be drilled to confirm commercial reserves of ASK Area. Development plan in progress. In Block M-9, 10 Appraisal Wells will be drilled to prolong ZTK Production to meet GSA

Miocene Carbonate Build-up

Estimated Gas Reserves 1 - 1.5 Tcf

KEY PROJECTS IN MYANMAR OFFSHORE

YADANA ( M-5/6) , Operator – TEPM

Started Production Since – 1998

Producing wells – 15 Nos

Production – 900 MMcfd

Plateau Period up to 2017

Recovery - 56%

Badamyar Project will be started very near

Future, Expected 1st Gas in 2017

YETAGUN ( M-12/13/14), Operator – PCML

Started Production Since – 2000

Producing wells – 11 Nos

Production – 350 MMcfd

Plateau Period will be finished soon

Recovery - 58%

Yetagun(N), Drilled 2 wells & start production

Plan to be drilled in-fill wells in next year

Under study for future exploration in M-12

Yetagun(N)

YADANA LAYOUT

BADAMYAR

(4 Wellhead Platforms + Sea line)

Zawtika Phase 1B

KEY PROJECTS IN MYANMAR OFFSHORE

SHWE( A-1/A-3), Operator – DAEWOO

Started Production Since – July,2013

Producing wells – 5 Nos

Production – 400 MMcfd

Plateau Period – 11 Years

DCQ 500 MMcfd will be started in Jan, 2015

Development wells drilling in progress

Under study for future exploration in A-3 deep

ZAWTIKA(M-9), Operator – PTTEPI

Started Production in Mar,2014 / Aug,2014

Producing wells – 21 Nos

Production – 345 MMcfd

Plateau Period – 6 Years

Development wells drilling in progress

Under study for future exploration in M-9 W

ZTK Phase 1B, EPCIC in progress

PSC MODEL

• PSC periods can be divided into: (1) Preparation Period ( 6months )

(2) Study Period ( 6 – 12 months or 2 Yrs for Deep)

(3) Initial Exploration Period (3 Years)

(4) Extended Exploration Period (1Yr+ 1 Yr)/ (2Yrs+ 1 Yr)

(5) Production Period ( 20 Yrs and above )

State Participation – 20% to 25%

Contractor should be performed as you committed in your proposal, if not MOGE has right to terminate according to the PSC.

Production Split

(Shallow Water ,<= 600ft) & ( 600 ft to 2000 ft, Deep Water)

(MOGE - Contractor)

60% - 40% up to 90% - 10 % Split depending on

Daily Oil & Gas Production

(More than 2000 ft, Deep Water)

(MOGE - Contractor)

55% - 45% up to 80% - 20 % Split depending on

Daily Oil & Gas Production

INTERNATIONAL BIDDING STATUS

OFFSHORE BLOCKS TO BE AWARDED - 20 OPEN BLOCKS - 13 UNDER OPERATION - 18

Prepare for Contract Signing in progress Initial Environmental Examination IEE/ ESIA have to be initiated within 6 months in preparation period followed by Exploration activity

Exploration is Necessary & Domestic requirement is priority

Do we need more exploration in Myanmar ?

Yadana

7/1998

Yetagun

4/2000

Shwe Zawtika

7/2013 3/2014

Current Production 2000 MMcfd

After 2017

Discovery is our objective

At lease 7 to 8 years to reach Production stage

Production Plateau Period based on size of reservoir

Increase in Demand Every year

390 MMcfd

725 MMcfd

Production With Normal Decline

CHALLENGES AND LESSON LEARNT

• WEATHER WINDOWS IN MYANMAR

• PROCESS TENDER AND APPROVAL

• QUALIFY CONTRACTOR FOR OPERATION

• PROCESS OF LONG-LEAD ITEMS

• GOOD MANAGEMENT TEAM

• COOPERATE WITH LOCAL RESPONSIBLE

PERSONS BEFORE OPERATION

Welcome to invest in Myanmar

PSC MODEL (Profit cash flow)