“The State aims to produce gas commercially in year 2023. It will take four or five years to get back our capital and a few more years after that before we turn a profit,” he said.

The development comes after the MOEE on September 22 said gas could be produced at Shwe Yee Htun-2 well. Further drilling has shown that gas can be extracted at water depths of 2,325 meters at the well at block A6, which is located about 100 kilometers away from Pathein in Ayeyarwady Region.

MPRL E & P Company will undertake production activities at the first-ever commercial offshore oil and gas production project once it is approved, said U Moe Myint, the company’s chief executive.

A total of five e wells have been drilled at block A-6 since 40 meters of net gas pay was first discovered at a depth of 4,820 meters at the Shwe Yee Htun-2 last year. Gas has been found in all five subsequent wells. “The discoveries show that the well has good potential for producing gas commercially,” said U Tint Swe, executive director of MPRL E & P.

MPRL E & P holds a 20 percent stake in block A6, while Woodside Energy from Australia and French energy giant Total hold stakes of 40pc each. Under an existing agreement, Total is to take over operations at the block during the development phase.

The State will receive 25pc of all gas produced from Shwe Yee Htun-2. The Shwe Yee Htun-2 discovery adds to the Shwe Yee Htun-1 and Pyi Thit-1 gas discoveries made in 2016 and 2017, respectively, at the block. – Translated