Yangon, Aug 27 (IANS): An Australian firm has signed a production sharing contract with Myanmar to explore gas in the Mottama offshore area, according to an official report.
The agreement provides a $5.2 million signature bonus and a $3.5 million data fee, the report said on Thursday, adding that $110.75 million will be spent during two years' observation period in the gulf of Mottama and another $110.75 million during a six-year oil testament period, reported Xinhua news agency.
The exploration will be launched at block M-7 involving a local private company.
An environmental impact assessment and social impact assessment are to be conducted before the exploration begins.
Statistics show that in the first half of this year, seven companies from Britain, Australia, Japan, Italy and India had respectively signed production sharing contracts with Myanmar to explore oil and gas at blocks off Rakhine coast, Taninthayi coast and Mottama.
Myanmar is rich in natural gas resources especially in the offshore areas.
Foreign investment in Myanmar's oil and gas sector amounted to $19.641 billion as of the end of May 2015.