Chevron inks PSC to explore in Myanmar's Rakhine basin

SAN RAMON, California -- Chevron's subsidiary, Unocal Myanmar Offshore, has entered into a production sharing contract (PSC) with Myanma Oil & Gas Enterprise (MOGE), the national oil and gas company of Myanmar, to explore for oil and gas in the Rakhine basin.

The new PSC area, Block A5, lies 125 miles northwest of Yangon, and covers more than 2.6 million acres. Unocal Myanmar Offshore will be the operator of the block with a 99% interest. Royal Marine Engineering, a Myanmar company, will hold the remaining interest in the block.

"Chevron is committed to exploring Myanmar's energy potential," said Brad Middleton, managing director, Chevron Asia South Business Unit. "The exploration of this block is aligned with Chevron's long-term strategy to find and develop resources that will help meet the growing energy needs in the Asia Pacific region."

In addition to Block A5, Chevron has a 28.3% non-operated interest in a PSC for the production of natural gas from Yadana and Sein fields, within Blocks M5 and M6, in the Andaman Sea.

The company also has a 28.3% non-operated interest in a pipeline company that transports most of the natural gas to the Myanmar-Thailand boarder for delivery to power plants in Thailand. The remaining volumes are dedicated to the Myanmar market.