ASEAN KEY DESTINATIONS
September 26, 2007
Indian firm signs product sharing contracts with junta
India's state-run Oil and Natural Gas Corporation (ONGC) Videsh Ltd has signed production sharing contracts with Myanmar to explore natural gas in three deep-sea blocks in Myanmar's western Rakhine offshore areas, official press media reported Wednesday.
According to the contracts signed in Nay Pyi Taw with the state- run Myanmar Oil and Gas Enterprise (MOGE) during a visit to Myanmar of Indian Oil Minister Murli Deora, gas exploration will be conducted at blocks AD-2, AD-3 and AD-9 off the Rakhine coast.
ONGC is among one of the share holders having 20 percent in a consortium headed by South Korea's Daewoo International Corporation (60 percent) undertaking gas exploration at blocks A-1 and A-3 off the same Rakhine state. The others include South Korea Gas Corporation (10 percent) and Gas Authority of India Ltd (GAIL) (10 percent).
Gas deposits were found at Shwe field and Shwephyu field at block A-1 and Mya field at block A-3 in 2004 and 2005 respectively.
In December last year, the GAIL of India and the Silver Wave Energy of Singapore agreed with the MOGE on contract to conduct oil and gas exploration and production at Block A-7 also in the Rakhine offshore area.
Myanmar has abundance of natural gas resources especially in the offshore areas. With three main large offshore oil and gas fields and 19 onshore ones, Myanmar has proven recoverable reserve of 18.012 trillion cubic-feet (TCF) or 510 billion cubic-meters ( BCM) out of 89.722 TCF or 2.54 trillion cubic-meters (TCM)'s estimated reserve of offshore and onshore gas, experts said.
The country is also estimated to have 3.2 billion barrels of recoverable crude oil reserve, official statistics indicate.
The Myanmar figures also show that in the fiscal year 2005-06, the country produced 7.962 million barrels of crude oil and 11.45 BCM of gas. Gas export during the year went to 9.138 BCM, earning over 1 billion U.S. dollars.
In the first three quarter of 2006-07 which ended in March, Myanmar produced 5.822 million barrels of crude oil and 9.819 BCM of gas, indicate the latest statistics which also showing that gas export during the period went to 8.124 BCM, gaining 1.24 billion dollars.
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