|
| Daewoo-OVL consortium to invest $3.7 bn in Myanmar |
| Press Trust of India / New Delhi Jul 13, 2009, 18:57 IST |
|
ONGC Videsh (OVL) and GAIL India along with their South Korean partners Daewoo Corp and Korea Gas Corp (KOGAS) may invest $3.73 billion in bringing to production natural gas they have found off Myanmar.
The four partners may 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, industry sources said.
Sources said, operator Daewoo has prepared a preliminary Field Development Plan (FDP) to 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 life is envisaged for 28 years.
First gas is anticipated in first quarter of 2013, they said adding that the final FDP is likely by August.
Gas will be sold to China for $7.72 per million British thermal unit at the landfall point in Myanmar. The price is indexed to the US inflation.
Daewoo holds 60 per cent stake each in block A-1 and A-3 while ONGC Videsh, the overseas investment arm of state-run Oil and Natural Gas Corp, has 20 per cent interest.
Myanmar's state-run Myanma Oil and Gas Enterprise (MOGE) has right to take 15 per cent, subsequent to which Daewoo would have 51 per cent, OVL 17 per cent and GAIL and KOGAS 8.5 per cent each.
Myanmar has decided that the gas from A-1 and A-3 would go to China. China National Petroleum Corp (CNPC) will pay $6.71 per million British thermal unit for the gas plus a offshore pipeline tariff of $1.02 per mmBtu. The 30-year sale contract is indexed to the US inflation, sources said.
The preliminary FDP envisages development of gas fields in phased manner-- Shwe and Mya (North) fields in phase-1, addition of Mya (South) field in phase-2, addition of Shwe Phyu field in phase-3 and installation of future compressor once pressure declines at Central Process Platform (CPP).
Gas will be sold to CNPC, which would lay a pipeline from the landfall point to China. The A-1 and A-3 consortium could join the pipeline which will have a capacity of 1,000 million cubic fee per day.
If the consortium of Daewoo-OVL-GAIL-KOGAS were to join the pipeline, they would be given a minority stake of up to 49.9 per cent, sources said.
The 870-km 40-inch pipeline in Myanmar territory would cost $1.95 billion.
Sources said the gas in A-1 and A-3 is lean (99 per cent methane) and having very less impurities.
Gas reserves of 4.532 trillion cubic feet (Tcf) in blocks A-1 and A-3 have been certified. In the preliminary FDP, 4.162 Tcf of reserves in Shwe, Shwe Phyu and Mya have been taken.
So far, the commercial viabilty of the natural gas discovery in both the blocks has not been declared.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
