Tap Oil Ltd. (ASX: TAP) has formalized its entry into Myanmar following the signing of a production sharing contract (PSC) for the shallow-water Block M-7 in Myanmar’s offshore Moattama Basin.
Tap holds a 95% participating interest in Block M-7 and has assumed operatorship. Tap Energy (M7) Pte. Ltd., and its local joint venture participant, Smart E&P International Co. Ltd., signed the PSC with Myanmar Oil and Gas Enterprise (MOGE) at an official ceremony in Nay Pyi Taw, on Aug. 26.
Under the executed PSC, the joint venture partners have agreed to undertake an 18-month environmental and social-impact assessment (ESIA) and study period, followed by an option to proceed to a three-year commitment exploration work program. Tap anticipates that it will spend approximately US$2.75 million on Block M-7, up to and including the study period, which has a minimum expenditure requirement of US$2 million.
Tap Managing Director/CEO Troy Hayden said, “The inclusion of Block M-7 in Tap’s portfolio is in line with the company’s Southeast Asian growth strategy, anchored by the flagship Manora Oil Development that has been in production for nine months.”