SINGAPORE, March 25 Chevron Corp has
signed a production sharing contract (PSC) with Myanmar Oil &
Gas Enterprise (MOGE) to explore oil and gas in the Rakhine
The contract covers an offshore area known as Block A5,
which lies 200 kms (124 miles) northwest of Yangon and spans
more than 10,600 square kilometres, the company said in a
statement issued late on Tuesday.
The PSC comes a year after Chevron was granted exploration
rights to block A5 and is the first to come with a majority
share for the U.S. explorer.
"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," said
Brad Middleton, managing director of Chevron Asia South Business
Chevron's subsidiary Unocal Myanmar Offshore Co. Ltd. will
operate the block with a 99 percent interest, while local
company Royal Marine Engineering Co. Ltd. holds the remaining
The U.S. oil and gas explorer has a 28.3 percent stake in a
PSC to produce natural gas from the Yadana and Sein fields,
within Blocks M5 and M6, in the Andaman Sea.
Chevron also holds a 28.3 percent share in a pipeline
company that transports natural gas to the Myanmar-Thailand
border for delivery to power plants in Thailand.
(Reporting by Florence Tan)