The PetroVietnam Exploration and Production Corporation (PVEP) has reached a production-sharing contract (PSC) for blocks MD2 and MD4 off the coast of Myanmar with the Myanmar partner.

Signatories in Naypyidaw, Myanmar, on March 31 were representatives from the PVEP, the Myanmar Oil and Gas Enterprise (MOGE) and the Italian Eni Group.

Under the document, the PVEP will have a 20 percent share while the Italian Eni Group will manage the project through the company Eni Myanmar B.V.

Covering 10,330 square kilometres, Block MD2 in southern Bengal bay is the largest oil and gas field of Myanmar. Block MD4, located in the Moattama basin, southern Andaman covers 5,900 square kilometres.

PVEP has conducted oil and gas activities in Myanmar since 2008.

The newly-signed PSC is an important move in the PVEP’s strategy to boost its oil and gas exploration and exploitation abroad and serves to further consolidate the cooperative relations between the two nations.

The PVEP has taken part in the management of 20 oil and gas projects in 15 countries worldwide. It has conducted exploration and exploitation activities at oilfields in Malaysia, Peru and Venezuela.

From 2007 to 2013, the corporation generated 43.5 trillion VND (2.05 billion USD) in revenue and 23.8 trillion VND (1.1 billion USD) in pre-tax profits. It also paid 14 trillion VND (658 million USD) in taxes to the state budget.

VNA