Wed 6 Oct 2004
Filed under: Business / Trade,News
ONGC Videsh Ltd and GAIL will get 30 per cent stake in Myanmar’s block A-3, which lies adjacent to a block where large quantities of gas reserves were discovered earlier this year.
Daewoo International of South Korea will give 30 per cent of its stake in A-3 to OVL and GAIL. Earlier, GAIL
chairman and managing director Proshanto Banerjee had told the media that both OVL and GAIL were negotiating with Daewoo for stake in the gas block. According to ONGC officials, “Indian firms will pay Daewoo for the past
cost incurred in exploration of A-3 block and share future exploration and production costs in proportion to their shareholding.”
The official did not say how much money OVL and GAIL will pay Daewoo but said seismic surveys were being done on block A-3 which were likely to cost $6 million.
OVL and GAIL have a similar equity participation structure in block A-1 off the Myanmar coast where 4-6 trillion cubic feet of gas reserves have been found.
Daewoo has 60 per cent interest in a-1 while Kogas of Korea has the remainder. Daewoo, the operator of both A-1 and A-3 blocks, sees India as the market for the gas it has found off the Myanmar coast and has roped in OVL and GAIL for the same purpose.