PTTEP agrees Burma swap with CNOOC

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Thailand's PTT Exploration & Production (PTTEP) and Chinese energy giant China National Offshore Oil Corporation (CNOOC) have agreed to swap stakes in oil and gas blocks in Burma, PTTEP confirmed today.

The deal would see PTTEP hand over its 20% stake in offshore gas blocks M3 and M4 to the Chinese outfit in exchange for a 20% share of CNOOC’s A4 and C1 blocks, the Thai company said in a statement.

After the swap, which still needs approval from the Burmese government, PTTEP's remaining 80% of blocks M3 and M4 in the Gulf of Martaban will be held by its international holding company, PTTEP International.

CNOOC will hold 61.25% of blocks A4 and C1, which it operates, and PTTEP will own 20%.

Other shareholders in blocks A4 and C1 are China Focus Development and China-Huanqiu Contracting & Engineering Corporation, reported Reuters.

Block A4 is a gas field off Burma’s Rakhine coast, while C1 is a potential onshore oilfield covering 17,000 square kilometres.

PTTEP, a subsidiary of Thailand's PTT, is looking to buy new gas and oil assets at home and abroad to increase reserves and capacity to meet rising domestic demand.

PTTEP also owns 100% of offshore Block M9, which is still under exploration in the Gulf of Martaban, south of Yangon, Burma’s main city.