Ultra-deepwater progress boosts Myanmar’s options

The sanctioning of the Shwe Yee Htun-2 project suggests the government is finally aligning its interests with those of operators

Myanmar’s struggling oil and gas sector received a welcome boost in mid-December with the signing of a production sharing agreement (PSA) between the government and French major Total that paves the way for the development of Southeast Asia’s first ultra-deepwater gas project.  Stakeholders can now start the pre-Feed phase for Block A-6, known as Shwe Yee Htun-2. Total announced last September that it had encountered 40m of net gas pay in the block, after drilling at depths of 4,850m in water depth of 2,325m, with preliminary tests also confirming good reservoir quality, permeability and well production deliverability.  The sanctioning of such a complex, cost-intensive, ultra-deepwater proje