France's Total is moving quickly to appraise natural gas potential on its acreage in the Gulf of Mataban off Myanmar, formerly Burma.
Industry estimates potential gas reserves there at 3.5 5 tcf.
In July, Total signed a production sharing agreement with state owned Myanmar Oil & Gas Enterprise (MOGE) for Blocks M5 and M6, covering a combined 26,140 sq km about 250 km southwest of Yangon.
Plans call for spudding the first of as many as four wells in February 1993. Total plans to spend $20 30 million the next 2 years on exploration off Myanmar, with a minimum two wells.
The first well will target the 3DA structure, where MOGE drilled two wells almost 10 years ago. Total soon will issue a tender for a drilling contractor. Total plans no further seismic surveys at present, given the quality of existing data sufficient for an initial well location, but may opt for a more extensive seismic program in the case of a full development plan.
Separately, Total has approached a number of major international oil companies seeking their participation in its Myanmar venture.
At the same time, Total plans to start formal talks soon with Petroleum Authority of Thailand's exploration arm PTT Exploration & Production (Pttep) about its interest in the Myanmar acreage. MOGE earlier told Pttep it could have a 30% interest in the Total MOGE acrea. Total is determined to retain operatorship, even if a major international partner has a stake equal to its own.
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