PTT Exploration and Production (PTTEP) reported average natural gas production of 302 million standard cubic feet per day (mmscfd) from the Zawtika field in Myanmar during 2024, according to the company’s latest management discussion and analysis (MD&A).
PTTEP reiterated that the development for Zawtika is on track, with the drilling of Phase 1D development wells complete, and the construction of Phase 1E wellhead platforms in progress.
Production from Yadana in 2024 was reported to be 443 mmscfd.
The company also reiterated that the Myanmar M3 project that is currently in the exploration phase is pending development. It was previously reported that PTTEP was awaiting approval of the supplementary production sharing contract for the project.
Myanmar Energy Monitor notes that while Yadana is currently Myanmar’s highest-producing offshore area, its output is expected to slow starting around the middle of the decade.
Since around 80% of production is exported to Thailand and China, a drop in exports will mainly be reflected as a drop in earnings.
According to figures recently released by the Thai energy ministry, 250 mmcfd of gas was exported to Thailand from Yadana in 11M 2024, down 13% year-on-year.
Volumes exported to Thailand from Zawtika were down 5% y-o-y to 225 mmcfd.
PTTEP is planning to drill an additional gas well at the Yadana field in Myanmar during 2025, according to a 20 December filing with the Stock Exchange of Thailand.
The aim of the campaign is reportedly to maintain current production levels and increase reserves, thereby extending Yadana’s operational life.
We note that in March, chief executive Montri Rawanchaikul confirmed that the Thai firm was considering contract extensions for the Yadana and Zawtika gas fields in Myanmar.
PTTEP’s operations in Myanmar produce the equivalent of around 50% of Myanmar's electricity consumption and 20% of Thailand’s, he said at the time.
The current contracts for the two Myanmar fields are set to expire in 2028 and in around 20 years.
Yadana offshore area is composed of the M-5 and M-6 offshore blocks. It is operated by PTTEP, with the Myanma Oil and Gas Enterprise (MOGE) also holding a stake. Chevron previously held a 41.1% stake but withdrew its investment on 1 April 2024 and transferred its participating interest to the remaining partners, leaving PTTEP with a 62.963% share.
The M-9 offshore block and part of the M-11 block comprise the Zawtika offshore area. PTTEP operates the area and holds an 80% stake in M-9, with MOGE holding the other 20%.