ONGC Videsh Limited (OVL) and GAIL India Ltd, the two Indian oil and gas
companies under the Ministry of Petroleum & Natural Gas today signed an
assignment agreement with South Korean company Daewoo for 20 % and 10 %
stakes respectively in A-3 exploration block in Myanmar.
The agreement was signed at Seoul in the presence of visiting Petroleum and
Natural Gas Minister Shri Mani Shankar Aiyar. Speaking on the occasion Shri Aiyar said that signing of agreement on the national foundation day of the
Republic of Korea (South Korea) marks an important milestone in our quest
for greater collaboration between Indian and Korean companies in oil and gas
sector. He invited the Korean companies to participate in the Indian Oil and
Gas exploration sector, which holds immense potential particularly in Bay of
Bengal where some of the world’s biggest gas discoveries have been made in
recent years on the Indian side of the Bay. He emphasized that the Korean
companies in India should move beyond service providers and take up the
opportunities which would come in our global offer of oil and gas
exploration blocks in sixth round under New Exploration Licensing policy
(NELP) in January next year. Bong-Hyeon Joo, Director General of Commerce,
Industry and Energy Ministry of Korea were present on the occasion of
signing agreements.
The today’s agreement provides OVL and GAIL entry in the A-3 block of
Mynamar, which has a major gas potential. The A-3 block is located near the
A-1 block, where the same consortium has already discovered around four
Trillian Cubic Feet (TCF) of reserves. Even though Daewoo won the A-3
block, the Korean company agreed to give 30 percent stakes to Indian
companies on the persuasion of Government of Mynamar, Shri Ranbir Singh
Butola, Managing Director of OVL said. Daewoo International Chief H B Lee said the four partners have an excellent business relationship and are working efficiently. During the drilling
campaign from November 2004 until August this year, five appraisal wells
from the Shwe field have resulted in one more discovery of gas. The Daewoo,
which holds sixty percent stake in A-3 block is the operator of the
hydrocarbon field. The stakes in A-3 block is distributed on pattern of A-1
block in which Daewoo holds 60 percent, OVL 20 percent and GAIL and KOGAS 10
percent each.
RCJ/GS/Press Release/ OVL & GAIL with DAEWOO (3.10.2005)
(Release ID :12486)