MURLI DEORA LEAVES FOR MYANMAR TOMORROW

TALKS ON ENHANCING BILATERAL COOPERATION AND PSC SIGNING BY OVL FOR THREE BLOCKS ON AGENDA

He would be accompanied by Petroleum Secretary Shri M. S. Srinivasan and MD ONGC Videsh Ltd (OVL) Shri R S Butola. After his arrival at Nay Pyi Taw, Myanmar on 23rd September, Shri Deora will meet his counterpart Brigadier General Lun Thi, Minister of Energy, Myanmar to discuss possibilities of enhancing bilateral cooperation in hydrocarbon sector. Shri Deora will also attend the signing of Production Sharing Contracts (PSCs) for 3 Deep Water exploration Blocks between OVL, and Myanmar Oil and Gas Enterprise (MOGE), a Govt of Myanmar enterprise.

OVL succeeded in acquiring 100% participating interests in these 3 Deep Water Blocks AD-2, AD-3 and AD-9 in Myanmar Offshore. The aerial extent of the blocks AD-2, AD-3 and AD-9 is 8,100sq. km, 9,900sq.km, and 7,800sq.km respectively. Water depth in the block areas ranges from 1500m up to 3000m off the Rakhine coast of Myanmar.

Prior to these three blocks, Oil PSUs OVL and GAIl have participated in the exploration activities in A-1 and A-3 blocks in Myanmar. In Block A-1 OVL and GAIL have 20% and 10% Participating Interests respectively. Gas discovery was made in 2004 and 2005 from Shwe and Shwe Phyu in block A1 which is estimated at 3.34 and 0.5 tcf respectively. In Block A-3 also OVL and GAIL have Participating Interests of 20% and 10% respectively. Gas discovery was made in this block in January 2006 and the Consortium has established a gas reserve of 1.52 tcf in the Mya Gas field. The total recoverable reserves of gas from A1 and A3 blocks are estimated to be about 4tcf (final study is in progress). The first gas is anticipated in early part of 2011.

Attempts are being made to acquire oil and gas assets in Myanmar. Currently, total oil and gas production of Myanmar is about 10,000 barrel oil per day (bopd) and 820 Million Standard Cubic Feet Per Day (MMSCFD) respectively. The total oil and gas reserves are estimated at 50 Million Barrel (MMBL) and 10 trillion cubic feet (tcf) respectively. Myanmar Oil and Gas Enterprise, the National Enterprise produces about 10,000bopd and 120 MMSCFD gas from onshore oil and gas fields.

In order to enhance energy security of the country, India is pursuing the option of acquiring equity in oil & gas assets overseas apart from developing our indigenous production. Oil Sector PSU’s and joint ventures have acquired blocks/participating interest in Vietnam, Iraq, Russia, Myanmar, Iran, Libya, Sudan, Syria, Nigeria, Egypt, Qatar, Brazil, Cuba, Colombia, Ivory Cost, Gabon, Yemen and Oman.