Thailand's PTTEP signs $72 million exploration deal in Myanmar

Thai energy company PTTEP said Friday it signed a production sharing contract for onshore exploration in Myanmar in the nation's capital, Naypyitaw.

Thailand's PTT Exploration and Production signed a contract with Myanmar Oil and Gas Enterprise for onshore exploration and production rights of MOGE 3 block. The company said it aims to drill as many as four wells during the first three years under a deal valued at an initial $72 million.

"This investment in Myanmar is a significant operational progress in line with PTTEP long term growth direction to explore the high potential areas," PTEEP President and Chief Executive Officer Tevin Vongvanich said in a statement. "If this exploration yields a successful result, it will thus secure both Thailand and Myanmar energy supply in the future."

The company gave no indication of the reserve potential at the onshore block.

International investors have moved into the wake created when Myanmar earned relief from economic sanctions when in 2010 it ended a long period of military rule through general elections. Human rights groups have said it was those sanctions that brought about reforms in the first place.

Yanghee Lee, U.N. special envoy to Myanmar, said in July there were "worrying signs of possible backtracking" in the country.