The Myanmar Investment Commission (MIC) has green-lighted a 50 million USD proposal to build an offshore oil and gas supply in Ayeyarwaddy Region

The Myanmar In­vestment Com­mission (MIC) has green-lighted a $50 mil­lion proposal to build an offshore oil and gas sup­ply base in Ayeyarwaddy Division.

The facility at Nga Yoke Kaung Bay would provide berths for construction and supply vessels, ware­houses, cranes and lift­ing equipment, helicopter rescue facilities and oil spill equipment and will play a crucial role in de­veloping existing offshore oil and gas fields, such as near-by Block A-6, as well as in the exploration of fu­ture fields.

As part of the joint ven­ture investment Myint & Associates Offshore Sup­ply Base (M&AOSB), a subsidiary of energy ser­vices sector company My­int & Associates will con­struct the facility, while MPRL E&P will handle upstream gas exploration and production.

M&AOSB will invest $50 million in the project which will have a 30 year life-span and is predicted to generate K25 billion worth of state revenue within its first 10 years, said a press release.

“In the initial phase of the project, land renova­tion and other activities including ESIA and front end engineering... are ex­pected to be implemented from June to November2017,” U Tint Swe, Ex­ecutive Director, Govern­ment & Public Affairs, MPRL E&P, told Myan­mar Business Today via email.

Construction of the sup­ply base, located on 30 acre's of company-owned land, will begin this De­cember and is expected to be completed by the end of 2019, he said.

The approval of the fa­cility by the MIC comes at a crucial time for pos­sible future development of Block A-6 with MPRL E&P scheduled to begin drilling two back-to-back appraisal wells in June.

MPRL E&P made the first gas discovery in the Rakhine Basin offshore Block A-6 in 2012 and after partnering with Woodside and Total on the Shwe Yee Htun ex­ploration campaign an­nounced the discovery of a second in January 2016.

U Tint Swe said the company estimates it will see a return on invest­ment within three years at the earliest.

(Myanmar Business Today: http://www.mmbiztoday.com/articles/50m-offshore-oil-and-gas-supply-base-ayeyarwaddy-gets-go-ahead)

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