Gas Authority of India Ltd (GAIL)

http://www.global-unions.org/burma/company.asp?ID=440

Information on

Gas Authority of India Ltd (GAIL)

Industry:
Gas industry

Country:
India

Date of evidence:

1/22/2002

Source of evidence:

The Times of India OVL, GAIL pick stake of Myanmar Daewoo arm PTI [ TUESDAY, JANUARY 22, 2002 4:48:44 PM ] NEW DELHI: ONGC Videsh Ltd (OVL) and Gas Authority of India Ltd (GAIL) have picked up 30 per cent stake of Daewoo International Corporation in its natural gas development project in block A-1 in Myanmar. OVL, the overseas arm of Oil and Natural Gas Corporation (ONGC), will take 20 per cent participating interest in the the Bay of Bengal gas block (Rakhine offshore), located northwest of Myanmar, while 10 per cent will go to GAIL. "OVL will buy 20 per cent stake of Daewoo International in the offshore exploration block which is estimated to hold about 10 trillion cubic feet of natural gas," ONGC chairman and managing director Subir Raha said in New Delhi. GAIL Chairman and Managing Director Prashanto Banerjee also confirmed the deal saying an agreement for taking participation interest in the block would be signed next week. Under the agreement, ONGC and GAIL would make some investment in feasibility tests at block A-1, and would invest more than 400 million dollar in the development stage. Both Raha and Banerjee declined to give any further details on the deal. "The feasibility tests would cost more than 20 million dollars and gas development costs would exceed 1 billion dollar," company sources said. Exploratory drilling would be decided in 2003 and commercial production was expected to begin in 2008. After the sale, Daewoo, the operator of the field, would have 60 per cent interest in the block while Korea Gas Corp. has the remaining 10 per cent. Sources said Daewoo had agreed to farm out 30 per cent stake in the A-1 block to OVL and GAIL, provided the two were prepared to bear 200 per cent of the participating interest through the first extension period ie., the drilling stage. "The South Korean company has agreement to give 20 per cent stake to ONGC and another 10 per cent to GAIL on the condition that they provide funding for the gas exploration project in excess of their stakes," sources said. Daewoo International, the developer of the block A-1 in Myanmar, had last month sold a 10 per cent stake in the block to Korea Gas Corp. "Daewoo was awarded the block in August 2000. Since then, it has been conducting preliminary feasibility studies and is now doing further studies toward beginning a drilling program by 2003, with first production in 2008," sources said. Banerjee said GAIL and OVL would explore the possibility of bringing the gas produced from the block to India through a pipeline. "All this is under consideration stage. We haven't firmed up any plans as yet. The results of exploration phase would determine the future course of action," he said.

Contact:
Proshanto Banerjee

Gas Authority of India Ltd (GAIL)

16, Bhikaiji Cama Place

New Delhi - 110 066

Fax: ++91-11-6185941