Minister hopes A-6 discovery rekindles upstream interest

Minister for Electricity and Energy U Win Khaing said he is hopeful the successful appraisal well in block A-6 will spur interest in a planned upcoming bidding round.
 
Speaking at a special press conference held in Naypyitaw on 25 September and attended by Myanmar Energy Monitor, the Minister said the discovery has the potential to rekindle investor interest.
 
Myanmar is planning another bidding round, to begin as soon as the end of the year. It hopes to generate the wide level of enthusiasm seen in the successful 2013 onshore and offshore rounds, though recently-volatile energy prices and complaints over PSC terms present major obstacles.
 
The Minister held the special press conference to mark the success of the Shwe Shwe Yee Htun-2 appraisal well drilled in offshore block A-6. Formation evaluation results indicating a gas column and net pay thickness that “substantially exceeds prior expectations”, consortium member MPRL E&P said in a 22 September press release.
 
The appraisal well is the fifth well drilled in A-6, with five gas discoveries, equating to a 100% successful track record, the release claimed.
 
Shwe Yee Htun-2 was spudded on 20 July 2018 and reached a total depth of 15,912ft (4,850 metres), in water depth of 7,628ft (2,325 metres).
 
Wireline formation evaluation including pressure measurements demonstrates that the reservoir is highly likely to be in pressure communication with the 2016 Shwe Yee Htun-1 discovery, which is approximately10 km east of the current drilling location. 
 
The minimum total gross gas column based on wireline pressure data from both wells is now estimated to be approximately 787ft (240 metres). Wireline formation evaluation also indicates that Shwe Yee Htun-2 encountered 131ft of net gas pay (40 metres). 
 
As of 22 September, drill stem test results indicate Shwe Yee Htun-2 is achieving a flow rate of 50mmscfd of gas through a 40/64” choke.
 
The well is now being plugged and abandoned as planned.
 
 
A-6 and the upcoming round
 
Minister U Win Khaing said tenders will be issued for a total of 15 blocks, including four to five of the recently-relinquished blocks.
 
Many of the companies that had won blocks in 2013 dropped them at the end of 2017, while others have held on to them but delayed promised drilling programs. Only a few E&P firms are presently moving forward with drilling programs.
 
Perhaps the most successful has been A-6. While not awarded in the 2013 round, the government has been keen to see A-6 begin production quickly, particularly as a gas shortage remains a challenge for domestic electricity production, and two of the four offshore areas are in decline.
 
Block A-6 is considered a shallow water block, but half of the block lies in shallow water in depths of up to 200 or 300 metres. In the western half of the block, the depth quickly goes down to about 2000 metres, which is ultra-deep water depth.
 
Woodside (40% owner) is the technical joint operator, while MPRL E&P (20%) is the PSC operator. The other partner is Total, at 40%.
 
The A-6 consortium has been one of the most active groups offshore Myanmar in recent years. Woodside has publicly said the consortium is aiming for first gas by 2023, which is the government's target.
 
MPRL E&P chief executive officer U Moe Myint was quoted as stating he wished to extend MPRL E&P’s commitment to its project stakeholders that the firm will continue to endeavour to achieve the nation’s first commercially viable ultra-deep water gas development project as quickly as possible.
 
In a separate press release, Woodside CEO Peter Coleman said that the well has encountered good quality reservoir, with a gas column at the high-end of pre-drill estimates, and that the firm looks forward to completing detailed analysis of the well results.
 
“The results are encouraging and we hope that the resources in the permit can contribute energy that will support Myanmar’s future economic development,” he said.
 
Total exploration and production president Arnaud Breuillac said in another press release that the new discovery on A6 block is a major step towards unlocking new gas reserves in an area closely located to the fast growing regional markets. "Total’s track record of Myanmar’s Yadana gas field exploitation is a key asset to lead these discoveries to commercial development," he said.
 
 
Source: MPRL E&P press release, 22 September 2018
 
Source: MoEE Facebook page

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