The Myanmar Ministry of Energy (MOE) announced the results of the Onshore Blocks Second Bidding Round. Bashneft gained the right to conclude a Production Sharing Contract (PSC) for Block EP-4, its stake in the project totalling 90%; besides, the company will operate the project

Bashneft’s partner in the project is Sun Apex Holdings Ltd., one of the local companies recommended by the Myanmar Ministry of Energy; it has a 10% stake in the project.

The signature bonus will total US$ 4 million. Under the PSC for Block EP-4, the participants shall implement a three-year geological exploration programme, which may be extended for another three-year period and includes seismic surveys and drilling of two exploration wells. Investments in the geological exploration programme shall total US$ 38.3 million.

Block EP-4 with the area of 841 sq. km is located in the Central Burma Basin. At the Block, 2D seismic surveys totalling 132 linear kilometres have been conducted, and three prospecting wells have been drilled, which have uncovered six promising oil-bearing formations. Block EP-4 is located in an area with well-developed oil and gas transportation and processing infrastructure.