By an OGJ correspondent
BANGKOK, Apr. 10 -- Thailand's PTT Exploration & Production PLC signed a final accord Apr. 9 with China National Offshore Oil Corp. to swap stakes in their blocks in military-ruled Myanmar.
The agreement wrapped up a basic deal the two state-controlled energy concerns struck in February, although it is still subject to approval by the Myanmar government (OGJ, Feb. 18, 2008, Newsletter).
PTTEP will hand over a 20% share in gas Blocks M3 and M4, Gulf of Martaban, to the Chinese firm in exchange for a 20% holding of CNOOC's offshore A4 and onshore C1 acreages.
PTTEP Chief Executive Anon Sirisaengtaksin said PTTEP and CNOOC plan to jointly shoot seismic, interpret the data, and drill at least one exploration well in each of the blocks under the asset swap.
The accord will reduce PTTEP's holding in Block M3 and M4 to 80% from 100%. Both possess high gas potential.
Following the share swap, the ownership structure for Block A4 and C1 is 61.25% by CNOOC, 20% PTTEP, and 18.75% jointly by China Focus Development Ltd. and China Huanqiu Contracting & Engineering Corp.
Anon said Block A4 off Rakhine has high gas potential, while the onshore C1 tract in northwestern Myanmar has crude oil potential.
