discussion on realistic oil and gas potential of onshore myanmar

www.duanemorris.com 1 www.duanemorris.com

Discussion on Realistic Oil and Gas Potential of Onshore Myanmar

Oliver Massmann – Partner, General Director

www.duanemorris.com 2

Oil Industry in Myanmar

Myanmar is one of the oldest known oil producing countries in the world. The oil industry in Myanmar was initiated by exploitation of oil from hand dug wells drilled by local peoples in Yenangyaung and Rakhine areas (East Baronga Islands and Yanbye Island) since Tenth Century A.D.

Yenangyaung East Baronga Islands

Yanbye Island


MYANMAR STARTED OIL EXPORT IN 1853 TO USA


FIRST MECHANISED DRILLING WAS STARTED IN 1886 BY BOC ON YENANGYAUNG ANTICLINE


No Basin Province

1 Hukaung Central Low Land

2 Chindwin

3 Central (Salin)

4 Pyay

5 Ayeyarwady

6 Shwebo-Monywa

7 Myitkyina-Katha

8 Bago Yoma

9 Sittaung

10 Rakhine Coastal Rakhine Coastal

11 Mawlamyine Southern Peninsular

12 Mepale

13 Namyau Eastern Highland

14 Hsipaw-Lashio

15 Kalaw

16 Rakhine Offshore Bay of Bengal

17 Moattama Offshore

Andaman Sea

18 Tanintharyi Offshore

19 East Andaman

Oil and Gas Prone

Oil Prone Gas Prone

Petroliferous Basins & Petroleum Concessions

3

9

MD-5

MD-4

MD-6

MD-7 MD-8

PSC-I

1

2

6

4

5

8

7

1

2

3 1

0

1

1

1

5

1

3

14

9

16

1

7

18

1

9

• 19 Petroliferous basins - 15 onshore (12 Tertiary + 3 Pre-Tertiary) - 4 offshore

• 104 Petroleum Concessions

- 53 onshore blocks - 51 offshore blocks ( 26 deepwater + 25 shallow)


Fore-arc Basin Back-arc Basin Foredeep Basin

TECTONIC SETTING OF MYANMAR ONSHORE


SEDIMENTARY BASINS OF MYANMAR AND EXPLORATION STATUS Basin Name Exploration Discovery No. of Tested Reservoir Status Identified Prospects Depth (Ft) Prospects Tertiary

•Forearc Basins Onshore 1. Hukawng Immature Nil 4 4 2. Chindwin Slightly mature 2 16 10 3000 - 5000 3. Central Fairly mature 16 35 30 100 - 6000 4. Pyay Embayment Slightly mature 8 40 23 100 - 6500 5. Ayeyarwady Delta Slightly mature 3 37 24 4000 - 12000 Offshore 6.West Moattama Slightly mature 7 24 9 4000 - 6000

• Backarc Basins

7. Shwebo-Monywa Immature Nil 10 2

8. Bago Yoma Slightly mature 1 12 2 9. Sittaung Immature Nil 1 1 10.. Myitkyina-Katha Frontier Offshore 10. East Moattama Slightly mature 1 4 3 11. Tanintharyi Slightly mature 2 19+ 7 4000 - 6000

•Intermontane Basins Onshore 12. Mawlamyaing Frontier Nil 5 13. Mepale Oil Shale Fairly mature 3

•Foredeep Basin 14. Rakhine coastal Slightly mature 2 12 5 100 - 7000 15. Rakhine Offshore Slightly mature Nil 12 8

Pre-Tertiary • Intermontane Basins 16. Hsipaw-Lashio Frontier Nil Not Define yet 17. Kalaw Frontier Nil 2 18. Namyaw Frontier Nil Not Define yet


PERCENTAGE OF TESETED LEADS IN ONSHORE BASINS

NO BASIN TESTED %

1 Hukaung 57

2 Chindwin 50

3 Salin 79

4 Pyay 58

5 Ayeyarwady 32

6 Shwebo-Monywa

20

7 Myitkyina-Katha 0

8 Bago Yoma 39

9 Sittaung 6

10 Rakhine Coastal 58

11 Mawlamyine 0

12 Mepale 60

13 Namyau 0

14 Hsipaw-Lashio 0

15 Kalaw 0

• 3 Pre-Tertiary and 2 Tertiary basins are not explored yet. • The rest 10 Tertiary basin are not fully explored yet.


SR.NO. BASIN NAME YEAR OF DISCOVERY PRESENT STATUS 1

Chindwin (2 oil fields) Indaw 1918/ 2002 Suspended.

2 Yenan 1974 Suspended. 3

Salin (13 oil fields+ 2 gas field)

Yenangyaung 1887 Producing 4 Yenangyat/ Ayadaw* 1893 Producing 5 Chauk 1902 Producing 6 Tetma 1980 suspended 7 Yenanma 1920 Producing 8 Mann 1970 Producing 9 Letpanto 1974 Producing 10 Peppi* 1976 Producing 11 Ngahlaingdwin 1979 Suspended 12 Htaukshabin 1910/ 1978 Producing 13 Tagaing 1914 Producing 14 Kanni 1985 Producing 15 Kyaukkwet 1995 Producing 16 Thargyitaung/Sabe 2001 Producing 17 Dahutpin 2006 Producing 18

Pyay Embayment (4 gas fields + 4 oil field)

Padaukpin 1920 Suspended 19 Pyaye* 1924 Suspended 20 Myanaung 1964 Producing 21 Pyay 1965 Producing 22 Natmi 1979 suspended 23 Shwepyitha 1967 Producing 24 Pyalo* 1969 Suspended 25 Htantabin 1980 Suspended 26

Bago Yoma (2 gas fields) Shwegu* 1994 Suspended

27 Indaing* 1996 Suspended 28

Ayeyarwady (4 gas fields)

Payagon/Hteinkyun * 1959 Suspended 29 Apyauk* 1991 Producing 30 Nyaungdon* 1999 Producing 31 Ma U Bin* 2006 Producing 32 Rakhine Coastal

(2 oil fields) Baronga Islands 1924 Suspended

33 Ledaung 1974 Sudspende

ONSHOE OIL AND GAS DISCOVERIES TO DATE


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200

300

400

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600

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In P

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Pro

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Re

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Field Name

In Place Proved Oil and Gas Reserves of Discoveries, Onshore Myanmar

Proved Oil IOIP (MMSTB)

Proved IGIP(BCF)


Basin-wiseProven Oil and Gas Reserves of Onshore Myanmar

Sedimentary Basin Cumulative Production EFRR

Tested lead % Oil (mmstb) Gas (bcf) Oil (mmstb) Gas (bcf)

Chindwin 1.2 0.002 8.800 8.808 50

Central Myanmar 566.241 620.812 85.122 130.203 79 Pyay Embayment 40.652 304.531 5.173 89.599 58 Bago Yoma - 2.399 - 20.828 39 Ayeyarwaddy delta 2.975 652.058 2.847 194.758 32 Rakhine Coastal 0.009 - 0.881 - 58

Total (6) Basins 611.077 1,579.802 102.823 444.196

ONSHORE As at 1-4-2015

Source: MOGE

• 93% of produced oil and 39% of produced gas come from Salin Basin. • 41% of produced gas comes from Ayeyarwady Basin • 19% of produced gas comes from Pyay Embayment Basin • Proved Oil and gas reserves of 6 Tertiary basins only could be estimated to date.


CHAUK OIL FIELD APYAUK GAS FIELD

0

5

10

15

20

25

CompressiveAnticline

Normal FaultRelated 3 way

Structure

Shoal Limestone Pinchout

No. of Oil Discovery 25 0 0 1

No. of Gas Discovery 2 4 1 0

No

of

Fie

ld

Proven Oil and Gas Play Types, Onshore Basins


Areas having untapped hydrocarbon potential

• West flank of the Central Myanmar Tertiary Belt so called western outcrops area has untapped conventional and unconventional (shale gas, tight gas and coal bed methane) hydrocarbon potential.

• Hukaung and Chindwin basins. • Tertiary and Pre-Tertiary Intermontane basins • Rakhine coastal area • Onshore back-arc basins • Stratigraphic traps


Inline NPCC2010M206(migration)

PA

OK

S

H

YA

PO

T

A

TI

STRUCTURAL CONFIGURATION IN WESTER OUTCROP


FM-3井中途放喷

PA

OK

SH

YA

PO TA

TI

FM-4

GOOD GAS INDICATIONS IN TIGHT PONDAUNG SANDSTONES PONDAUNG PINCHOUT PROSPECT

Strong gas shows were encountered while drilling Pondaung sandstones in well FM-4. Gas bearing tight gas sandstones


CONCLUSION

• Realistic hydrocarbon potential of onshore Myanmar is not known yet .

• It can be envisage that onshore Myanmar has huge amount of untapped hydrocarbon potential.


Thank you!

Oliver Massmann – Partner, General Director

[email protected];

discussion on realistic oil and gas potential of onshore myanmar

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