OVL, GAIL in JV with Korea's Daewoo for gas production in Myanmar
14 Jul 2009
A consortium of ONGC Videsh Ltd, GAIL India and South Korea's Daewoo Corp and Korea Gas Corp is planning to invest $3.73 billion in natural gas production in Myanmar.
The companies will invest $2.79 billion in the three gas fields in Block A-1 and A-3 off the Myanmar coast and another $936.26 million in laying an under-sea pipeline to take the gas to the shore, reports said.
According to a preliminary field development plan, operator Daewoo will tie up Shwe and Shwe Phyu in Block A-1 and Mya in Block A-3 together to produce a plateau of 500 million standard cubic feet per day of gas for 19 years. The field is estimated to have a life of 28 years.
The companies expect to start gas production in the first quarter of 2013 and the final FDP is likely by August. Gas from the field will be sold to China for $7.72 per million British thermal unit.
China National Petroleum Corp (CNPC) will pay $6.71 per million British thermal unit for the gas plus an offshore pipeline tariff of $1.02 per mmBtu in a 30-year sale contract indexed to the US inflation.
Daewoo holds 60 per cent stake each in block A-1 and A-3 while ONGC Videsh has 20 per cent interest. GAIL and KOGAS have 10 per cent each. Myanmar's state-run Myanma Oil and Gas Enterprise (MOGE) has right to take 15 per cent, which would reduce Daewoo's stake to 51 per cent, OVL's to 17 per cent and that of GAIL and KOGAS to 8.5 per cent, respectively.
.webp)
.webp)
.webp)
