Eni will operate the blocks through Eni Myanmar BV with 80% participating interest. Petrovietnam Exploration Production Corp. Ltd. will hold the remaining 20%.
MD2 is in the Rakhine basin in the southern portion of the Bay of Bengal, lying 135 km from the coast and west of Yadana field, the major offshore discovery in Myanmar. It covers 10,330 sq km in 500-2,400 m of water.
MD4 is in the Moattama-South Andaman basin, lying 230 km from the coast and west of Yetagun gas field. It covers 5,900 sq km in 1,500-2,200 m of water.
The PSCs foresee a study period of 2 years followed by an exploration period of 6 years, subdivided in 3 phases, Eni says.
"Today we become one of the largest operators in the exploration activities in Myanmar, taking a further step in our organic growth strategy in Southeast Asia where we are already present in China, Vietnam, and Indonesia," said Claudio Descalzi, Eni chief executive officer.
Eni entered Myanmar in July 2014 by signing PSCs for exploration of onshore Blocks RSF-5 and PSC-K respectively in the prolific Salin basin and unexplored Pegu Yoma-Sittaung basin (OGJ Online, July 31, 2014).
Also this month, Reliance Industries Ltd. took 96% interest in a PSC as operator of Blocks M17 and M18 (OGJ Online, Mar. 31, 2015); and Chevron Corp. subsidiary Unocal Myanmar Offshore Co. Ltd. took 99% interest in a PSC as operator of Block A5 (OGJ Online, Mar. 25, 2015). Those blocks were awarded in the same bid round as Eni’s offshore blocks.