Sinopec discovers Myanmar’s biggest gas deposit

China's top oil refiner China Petroleum and Chemical Corp (Sinopec), has discovered large deposits of natural gas in central Myanmar, the country's biggest onshore gas discovery since it opened its energy sector to foreign investment in 1988.

The gas was found in the in Block D of the Pahtolon oilfield and is reported to have proven reserves of 909 billion cubic feet of gas and 7.16 million barrels of condensate, according to a yesterday report from the local daily newspaper New Light of Myanmar.

The oilfield is operated by SIPC Myanmar Petroleum Co Ltd, a joint venture between state-owned Myanmar Oil and Gas Enterprise and Sinopec.

Although Sinopec has yet to announce the discovery, the Beijing-based company had said in August 2010 that there is evidence of high-yield gas flow in Pahtolon Well-2ST. This is after gas was earlier discovered in Pahtolon Well-1, an indication that there could be huge gas reserves in Block D.

Foreign companies operating through joint ventures with Myanmar state run oil companies have invested over $13.5 billion since the country opened to such investment in late 1988 at 49 onshore sites and 26 offshore blocks.

According to the US-based EarthRights International, majority of the oil majors operating in Myanmar, are from China, including the three major Chinese oil and natural gas companies, China National Petroleum Corporation (CNPC), Sinopec and China National Offshore Oil Corporation, which have collectively invested in 21 onshore and offshore oil and natural gas projects in Myanmar.

Other foreign oil companies in Myanmar include Total, Petronas, Daewoo International, PTTPI, MPRL E and P, Petrovietnam, ONGC Videsh and Essar.