Reliance signs production sharing contracts for 2 offshore blocks in Myanmar

Reliance Industries Ltd (RIL) and Myanma Oil and Gas Enterprise (MOGE), an enterprise of the government of Myanmar, on Tuesday signed production sharing contracts for two offshore blocks (M17 and M18) in Myanmar.

RIL had won both the offshore blocks after its bids in Myanmar Offshore Block Bidding Round – 2013 were declared successful by Myanmar's ministry of energy (MOE).

RIL will be the operator of the blocks with a 96-per cent participating interest. United National Resources Development Services Co Ltd (UNRD), a Myanmar company, will hold the remaining interest in the block.

Both the blocks are located offshore in the Tanintharyi basin of Myanmar in water depths up to 3,000 ft and together encompass total area of 27,600 sq km.

RIL, which is facing roadblocks in its domestic expansion, said its strategy is to expand its international asset base by investing in internationally attractive oil and gas destinations. RIL plans to leverage its organisational capabilities and expertise to create value for the E&P segment.

RIL had earlier entered into a pact with Mexico's national oil company Petroleos Mexicanos (Pemex) to explore upstream oil and gas business opportunities in that country.

The company has also entered into production sharing deals in Venezuela and Iraq.

RIL, which has seen a stagnation in revenue and profit over the last five years, due mainly to the decline in E&P production and cyclical volatility in Petchem margins, which have remained flat.