PTTEP Could Axe Gas Project Offshore Burma

Thailand’s PTTEP could axe natural gas project offshore Burma, according to The Irrawaddy.

The Thai state-owned oil company said its M3 Block in the Gulf of Martaban, where promising gas discoveries have been made, is one of five foreign investments now facing the axe.

“If average oil prices fall to $55 a barrel, PTTEP and the PTT group may adjust investment plans. We could put a brake on [Burma’s] M3 projects,” The Irrawaddy quoted PTTEP chief executive Tevin Vongvanich as saying in Bangkok this week.

The M3 Block contract was signed in 2004 and PTTEP has carried out surveys and some exploratory drilling in the offshore block. The M3 Block is in the same area as the Zawtika gas field which is also managed by PTTEP and began producing natural gas in 2014.

PTTEP owns 80 percent stake in the block while rest is owned by Mitsui Oil.

Last month, the Thai company said it would terminate the FLNG project of PTT FLNG Limited (PTT FLNG) and deregister PTT FLNG by end of next year.

“The termination of the FLNG project and the deregistration of PTT FLNG are to comply with PTT Group policy and investment strategy as well as to reduce operating expenses,” the company said.

Established in 2010, PTT FLNG is a joint venture between PTT International (Singapore) Pte. Ltd. and PTTEP FLNG Holding Company Limited.