More Indian Construction Companies Move into Burma
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ONGC in deal for new Myanmar blocks - sources
September 19, 2007: (Reuters) State-run explorer Oil and Natural Gas Corp is likely to sign an agreement with Myanmar next week for the exploration of 3 offshore blocks, company and government sources said on Wednesday.
A senior ONGC official, who could not be named, said the blocks off Myanmar's Arakan state had been offered on a nomination basis through negotiations to the Indian firm.
"It's a government to government deal. Money involved is marginal. We will be investing for seismic and exploration activities," the company official told Reuters.
ONGC through its overseas investment arm ONGC Videsh will own 100 percent of the three blocks, he said.
ONGC Videsh Managing Director R.S. Butola will this Sunday accompany India's oil minister, Murli Deora, on a trip to the southeast Asian nation.
"The agreement signing ceremony (for the blocks) will take place on Monday," said an oil ministry official, who also could not be named.
ONGC already has a 20 percent stake in two
offshore blocks in Myanmar,
while Indian gas transmission company GAIL (India) Ltd has a 10 percent stake
in both.
South Korea's Daewoo International Corp operates the two blocks with a 60 percent stake, while Korea Gas Corp owns the remaining 10 percent.