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Total in Myanmar

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We have been involved in exploration and production in Myanmar since 1992, when we began developing the Yadana field to supply gas to the local  and Thai markets. We also conduct exploration activities on other licenses.

An extensive CSR program has been deployed at the national level and in communities located near the pipeline that runs from Myanmar to Thailand. The program serves 38,000 people in 33 villages.

It Started With Yadana

The Yadana gas field, located in the Andaman Sea approximately 60 kilometers offshore, was discovered by state-owned Myanma Oil and Gas Enterprise (MOGE) in 1982. As Myanmar's oil industry was still closed to foreign investment at the time, MOGE lacked the technical and financial resources to develop it. That changed in the late 1980s, when Myanmar decided to call on international companies to develop its hydrocarbon resources. Total was selected and set up Total E&P Myanmar. Then in July 1992, the subsidiary entered into a contract with MOGE that divided the project into three phases:

  • A technical survey of the field to determine whether development would be economically feasible and the search for a long-term purchaser for the gas.
  • Design and construction of the gas production facilities and transmission infrastructure.
  • Gas production by the partners, and transmission by Moattama Gas Transportation Company (MGTC), which the partners set up to build and operate the pipeline.

Construction to Production

In the preliminary phase, the field's reserves were reevaluated at 5,300 billion cubic feet (150 billion cubic meters). Then in 1994 and 1995, after this amount was deemed sufficient to make development economically feasible:

  • Commercial negotiations were concluded with the gas purchaser, the state-owned Petroleum Authority of Thailand (PTT).
  • The MOGE-Total partnership was widened to include Unocal (now Chevron) and the Petroleum Authority of Thailand Exploration & Production (PTTEP).
  • A decision was made to develop both the Yadana field, comprising several platforms for wells, production, living quarters and compression, and the pipeline, made up of a 346 kilometer subsea section to carry the gas to the shore and a 63 kilometer onshore section running to the Thai border.

Production began in 1998 after three and a half years of work and a significant amount of investment. Today, a new pipeline to Yangon ensures that a quarter of production, or around 2 billion cubic meters a year, is supplied to Myanmar's domestic market, with the remainder exported to Thailand.

Gas Development and Exploration Continue

In 2014, further large-scale works began on Blocks M5 and M6 of the Yadana complex with the aim of developing the Badamyar field and installing an additional compression platform. This will allow the Yadana consortium to maintain plateau production until well after 2020.

Total E&P Myanmar is also actively pursuing exploration activities beyond Blocks M5 and M6. In February 2015, it signed an exploration contract for deep offshore Block YWB (100%) after successfully bidding in the Myanmar government's 2013 call for tenders.  On Oct 8th, 2015, TEPM entered with a 40% interest the A6 Joint venture operated by Woodside (40%) and MPRL (20%). On Jan 4th, 2016, a gas discovery was announced with the drilling of the deep offshore (2000m) well Shwe Yee Htun 1.

Our partners

Established in 1996, MPRL E&P is a leading Myanmar upstream energy company and one of the largest acreage holders in the oil and gas sector in Myanmar. MPRL E&P is the PSC Operator in offshore Block A-6 and has achieved exploration success in the shallow water region of the block prior to Woodside and Total’s farm-in. MPRL E&P is fully committed towards conducting business following the highest standards of ethics and transparency and aims to continue to be at the forefront of energy providers to enable progress of the Myanmar economy and citizens.

Total & MPRL E&P
In 2015, Total farmed in with a 40% interest in the offshore block A6, with MPRL and Woodside operating the block with a 20% and a 40% interest respectively. Located offshore Myanmar’s western coast, the first deep water exploration well (2000 m water depth) drilled on this block led to the Shwe Yee Htun gas discovery announced on January 4th, 2016. Appraisal and exploration activity are being conducted in 2017 on this prospective block.

SMART was founded in 1994 and is a one-stop service provider for the Oil & Gas Industry. The company helps its clients to lead safe and efficient operations both onshore and offshore. By its commitment to international business standards and timely delivery, SMART has been recognized as a market leader in Myanmar.
In 2016, SMART ranked top 4 out of 300 local companies for its Best Responsible Practices reviewed by the Myanmar Centre for Responsible Business.

Total & SMART
Total is working closely with SMART to support the catering and housekeeping for around 200 of Total and Contractor’s employees both onshore and offshore. SMART is also operating land transport and providing local skilled manpower at Total offices and sites. Through our partnership we cooperate to foster the development of local talents and to source our products locally. We also share the same commitment to empower the communities involved in our operations by co-trainings and sharing knowledge through CSR programs.

Our Commitment

Total

Become the responsible energy major

Total puts Corporate Social Responsibility at the heart of its activities and conducts the operations according to key principles.

See also