As initially reported by IHS Markit, POSCO International in late April 2020 confirmed the completion of its three-well exploration drilling campaign in Block A-3, offshore Rakhine Basin. The final well, Yan Aung Myin 1, is believed to be unsuccessful, as the company reported one discovery in the campaign from the previous wildcat Mahar 1.  Yan Aung Myin 1 was drilled at a water depth of approximately 900 m, targeting Pliocene turbidite sandstones. As of late March 2020, drilled depth for Yan Aung Myin 1 was over 2,600 m. The well was likely spudded in mid-March 2020.  The "Maersk Viking" D/S was released in mid-April 2020 after completing the three-well programme that included wildcats Kissapanadi 1 and Mahar 1 prior to Yan Aung Myin 1. The drilling contract was valued at approximately USD 33 million, including mobilization fee. IHS Markit understands that a contract option for a fourth well was not exercised.  The Yan Aung Myin ("Victory" in Myanmar language) prospect is located 24 km southeast of the Mahar ("Greatness") prospect that was successfully drilled in February 2020. Mahar 1 was initially announced by POSCO as a gas discovery on 17 February 2020. The well flowed 38 MMcfg/d upon testing, with a gross gas column of 18 m. Initial estimates by the company indicate contingent gas resources of approximately 660 Bcf from the discovery. Mahar 1 was drilled in approximately 1,100 m of water.  The first well in the campaign, Kissapanadi 1, was drilled in December 2019 and has been plugged and abandoned, with results still under evaluation as of early 2020.  The operator is planning to drill two to three appraisal wells in 2021 to confirm the commercial status of the Mahar discovery. Despite the deepwater location, the newly discovered resources could be developed with a reduced investment via facility sharing with POSCO's Shwe Gas project straddling Block A-1 and Block A-3.  The Shwe project produced approximately 550 MMcf/d of dry gas in March 2020. About 70% of the produced gas is exported to China, while the rest is allocated to the domestic market.   Blocks A-1 and A-3 are operated by POSCO International with 51% interest alongside partners ONGC Videsh (17%), MOGE (15%), Gail (India) (8.5)% and Kogas (8.5%).  Background Information  The 6,779 sq km block was awarded to Daewoo (100%) in February 2004. OVL and Daewoo had applied separately for the block, both seeking a 100% equity. Block A-3 lies adjacent and south of Block A-1, where operator Daewoo made a gas discovery with the sidetrack of its first wildcat Shwe 1, marking the first discovery in Myanmar waters in the Rakhine Basin. The well, drilled from November 2003 to January 2004, flowed 32 MMcfg/d from Lower Pliocene basin floor fan sandstones upon testing.   On 1 November 2004 Daewoo entered into the exploration phase of the block by paying an agreed signature bonus of US$ 2.5 million. Subsequently, during February-April 2005, the company acquired 7,797 line km of 2D seismic over the block at an estimated cost of US$ 2.2 million. Interpretation of the new seismic data has led to the identification of undisclosed number of prospects including Mya (Emerald).   On 3 October 2005, Daewoo finalised a deal with ONGC Videsh Ltd (OVL), Gas Authority of India Ltd (GAIL) and Korea Gas Corporation (Kogas) to acquire stakes of 20%, 10% and 10%, respectively in Block A-3. The two Indian state firms, OVL and GAIL, paid premiums of US$ 2.88 million and US$ 1.44 million, respectively. It followed a Memorandum of Understanding (MOU) signed on 5 October 2004 to finalise the farm-in agreement, where a combined 30% equity was offered to the two Indian firms against their request for 50% equity.  Daewoo drilled four exploration wildcats in the block and discovered the Mya field in 2005. In 2007, two appraisal wells were drilled, Mya 2 and Mya 3, and successfully appraised gas. Three wildcats, Mya West 1, Kyauk-Seine 1 and Thandar 1, were drilled between 2007 and 2008 but did not have favorable results.   In January 2008, the operator completed a 1,006 sq km 3D seismic survey using CGGVeritasâs âCGG Harmatanâ survey vessel.
Myanmar (Rakhine B.) Mya