YANGON, March 17 Russia's Silver Wave Sputnik
Petroleum Pte Ltd. has signed a deal with state-owned Myanma
Oil and Gas Enterprise (MOGE) to explore and produce oil and
gas in onshore B-2 block, official newspapers reported on
The production sharing agreement was signed by MOGE
Managing Director U Myint Kyi, Minister for Energy of Kalmykia
Republic Boris Chedyrov and Silver Wave Energy Pte Ltd.
chairman Min Min Aung, the Myanma Ahlin newspaper reported.
B-2 block, located in the Hukaung Valley in Kachin State,
northwest of Myanmar on the border with India, is one of six
onshore blocks reopened to foreign investors last year.
Silver Wave Energy is associated with the Kalmykia-based
Silver Wave Sputnik Petroleum formed with the close associates
of Myanmar's ruling military regime.
It was the second agreement with a Russian company for
exploration of gas and oil in Myanmar.
In September 2006, JSC Zarubezhneft Itera Oil and Gas
Company of Russia Federation and Sun Group of India jointly
agreed with MOGE to explore for oil and gas in offshore Block
M-8 in the Mottama Gulf off the Tanintharyi Coast.
Analysts say increasing Russian investment in Myanmar's
lucrative oil and gas sector is a result of improving ties
between the two nations.
Russia, along with China, has now become a major supporter
and supplier of arms to Myanmar's junta since the West imposed
sanctions in late 1988.
Last year, Russia and China blocked attempts by the United
States to put Myanmar on the agenda of the United Nations
"Russia needs a reliable ally in the Southeast Asian region
following the Cold War. Myanmar is their best choice," a
retired diplomat in Yangon told Reuters.
Official data show that Myanmar has at least 90 TCF of gas
reserves and 3.2 billion barrels of recoverable crude oil
reserves in the country's 19 onshore and three major offshore
oil and gas fields.
Altogether 25 offshore blocks are now under exploration, of
which 12 are located in the Mottama Gulf, six off the
Tanintharyi coast and seven off the Rakhine coast.