THAILAND’S PTT Exploration & Production (PTTEP) has farmed out stakes in two of its blocks in Myanmar to Japan’s Mitsui E&P and Thai-based Palang Sophon Offshore.

PTTEP divested two 10 per cent stakes in Blocks PSC G and EP 2, located onshore in the Central Myanmar basin, to Mitsui Oil Exploration Company (MOECO) and Palang for an undisclosed sum.

The government of the Republic of the Union of Myanmar approved the transaction.

MOECO said the deal had positioned Myanmar and other targeted parts of South East Asia as its core business area.

“After the acquisition of the interests in Block PSC G and EP 2, MOECO participates [in six] blocks in Myanmar and aims to further expand its business and pursues further acquisitions of new projects in the region and globally,” the company said.

In its announcement, PTTEP said the divestiture was part of its strategy to add value and manage risk at the blocks, which cover 1.3 million hectares and 134,500 hectares respectively.

PTTEP will retain a 70% stake in both blocks, with Win Precious Resources retaining the other 10% stake.

The news came as PTTEP announced that its president and chief executive, Tevin Vongvanich, would step down from his role due to his appointment as president and chief executive of the broader PTT public company effective from 10 September. He will retain a directorship of PTTEP.

Production asset group executive vice president Pairoj Rangponsumrit will serve as acting chief executive in addition to his current role until a nomination process is completed.