Chevron’s subsidiary Unocal Myanmar Offshore has signed a production sharing contract (PSC) with Myanma Oil & Gas Enterprise (MOGE), to explore for oil and gas in the Rakhine Basin.
The new PSC area, Block A5, spans over 2.6 million acres, and is located approximately 125 miles northwest of Yangon.
Unocal Myanmar Offshore operates the block with a 99% stake. Royal Marine Engineering will hold the remaining 1% interest.
Chevron Asia South business unit managing director Brad Middleton said: "Chevron is committed to exploring Myanmar’s energy potential.
"The exploration of this block is aligned with Chevron’s long-term strategy to find and develop resources that will help meet growing energy needs in the Asia Pacific region."
Unocal Myanmar Offshore president Scott Neal said: "This agreement expands our partnership with MOGE and Myanmar. We have a 20-year history in Myanmar, and we look forward to supporting the continued development of the nation’s energy sector through our exploration program."
Apart from Block A5, Chevron holds a 28.3% non-operated interest in a PSC for the production of natural gas from the Yadana and Sein fields, within blocks M5 and M6, in the Andaman Sea.
The company also owns a 28.3% non-operated interest in a pipeline firm that transports the majority of the natural gas to the Myanmar-Thailand border.