PTTEP-CNOOC to swap stakes in Myanmar blocks

Reuturs
BANGKOK, April 9 (Reuters) - Thailand's PTT Exploration and Production PCL PTTE.BK and Chinese energy giant CNOOC Ltd (0883.HK: Quote, Profile, Research) have agreed to swap stakes in oil and gas blocks in army-ruled Myanmar, the Thai firm said on Wednesday.

The deal will see PTTEP hand over its 20 percent stake in offshore gas blocks M3 and M4 to the Chinese firm in exchange for a 20 percent share of CNOOC's A4 and C1 blocks, the company said in a statement.

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

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

Other shareholders in blocks A4 and C1 are China Focus Development Ltd and ChinaHuanqiu Contractig & Engineering Corp.

Block A4 is a gas field located off the former Burma's Rakhine coast, while C1 is a potential onshore oil field covering 17,000 square kms (6,564 sq miles).

PTTEP, a subsidiary of PTT PCL PTT.BK, 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 percent of offshore Block M9, which is still under exploration in the Gulf of Martaban, south of Yangon, Myanmar's main city.

The company said in August last year it planned to spend $1 billion on Block M9 and was looking for financial and technical partners to help share the costs of developing it. ($1 = 31.78 Baht)