MOSCOW, August 11 (RIA Novosti) – Russia’s Bashneft subsidiary, Bashneft International B.V., has signed an agreement with Myanmar’s state oil and gas company for the distribution of the Block EP-4 oil well, the company’s press service announced Monday.
Over the next three years, with a possible extension of another three years, the partners will develop a geological survey program to investigate the seismicity and drilling of two survey wells. Project investment costs are at $38.3 million, the company said in a press release.
Bashneft will own 90 percent of the operation and Myanmar’s Sun Apex Holdings will retain 10 percent of shares.
Bashneft was authorized to sign a production-sharing contract for Myanmar’s Block EP-4 in October 2013 following the results of the Myanmar onshore blocks’ second bidding round.
The contract with Myanmar is Bashneft’s second foreign project. The Russian company is also part of a consortium consisting of British Premier Oil, who owns 30 percent, and Iraqi South Oil Company, to explore Iraq's Block 12 in the south of the country. Bashneft owns 70 percent of the project.
Block EP-4, with an area of 841 square kilometers (325 square miles), is located in Myanmar’s Central Burma Basin. Two-dimensional seismic surveys totaling 132 kilometers in length have been conducted and three oil-surveying wells have been drilled along the block.