PTTEPI signs Zawtika construction work gas contracts – Burma pipeline to Thailand

Construction News

PTT EXPLORATION and Production International (PTTEPI) signed contracts for construction work at its Zawtika gas project in the Gulf of Mottama on May 7, the company said.

The signing ceremony took place in Yangon at the Chatrium Hotel.

PTTEPI contracted the tasks of building processing and living quarters to Singapore-based SMOE Pte Ltd, a recognised leader in the engineering and construction of offshore production platforms, a PTTEPI official said. The official said the work is expected to cost US$360 million.

The company also contracted transportation, installation, hook-up and commissioning of Zawtika’s processing and living quarters platform to Straits Offshore Pte Ltd (SOPL), also based in Singapore, on the same day in a deal worth $57 million.

“In developing the gas field, PTTEPI will deliver gas through a 28-inch pipeline across a distance of about 300 kilometres [to Thailand],” said Mr Suksant Ongvises, construction project manager of the Zawtika project.

Mr Ho Nee Sin, managing director of SMOE Pte Ltd, said the company was informed that it had won the contract in May last year and has been buying equipment since.

“Our project team is doing the steel work, which we expect to complete by early August and will be followed by the installation of equipment,” he said.

“And we are on track for the timely fabrication of the living quarters as well,” he added.

In November 2011 PTTEPI contracted India’s Larsen & Turbo Ltd to build Zawtika’s three wellhead platforms, with the onshore export pipeline and associated facilities contracted to China Petroleum Pipeline Bureau.
The offshore component of Zawtika project’s pipeline will be about 230km while the onshore section crossing Tanintharyi Region’s Dawei district and Yayphyu township is about 70km.

Zawtika is a joint PTTEPI and Myanma Oil and Gas Enterprise project, with the former to receive 80pc of the revenues from the sale of gas under the production sharing contract.
Most of the gas – 240 million cubic feet a day (mmcfd) or 80pc – will be exported to Thailand with the rest, 60mmcfd to be used for domestic use. Ministry of Energy statistics state that the Zawtika field contains reserves of 1.4 trillion cubic feet of gas.



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