ONGC to invest $150 mn in new Myanmar blocks

ONGC to invest $150 mn in new Myanmar blocks

By Reuters

New Delhi: India’s state-run Oil and Natural Gas Corp will invest at least $150 million (Rs595 crore) over the next seven years to explore three new deepwater blocks in Myanmar, a company statement said on 24 September.

Myanmar’s government has awarded 100% participating interest in blocks AD-2, AD-3 and AD-9 to ONGC Videsh Ltd, the overseas investment arm of ONGC.

ONGC has said that all three blocks off the Arakan coast have good hydrocarbon potential as they are close to the A-1 and A-3 shallow water blocks where ONGC Videsh is part of the consortium which has found gas.

Those fields are confirmed at holding 4.53 trillion cubic feet (TCF) to 7.74 TCF of recoverable reserves, according to U.S.-based international certification agency, Gaffney, Cline & Associates.

ONGC owns 20% of each of the A-1 and A-3 blocks, while Indian gas transmission company GAIL (India) Ltd has 10% of the two assets.

South Korea’s Daewoo International Corp operates the two blocks with a 60% stake, and Korea Gas Corp (KOGAS) owns the remaining 10%.

Despite the country’s political isolation and Western sanctions, Myanmar’s offshore natural gas fields have become a hotly contested commodity as neighbours seek stable, secure sources of cleaner fuel for their fast-growing economies.

Myanmar has at least 90 TCF of gas reserves and 3.2 billion barrels of recoverable crude oil reserves in 19 onshore and three major offshore fields.