New Delhi: State-run Oil and Natural Gas Corp. Ltd and GAIL (India) Ltd plan to take a 12.5% stake in the $2.01 billion (around Rs9,385 crore) gas pipeline that China is building in Myanmar to transport natural gas found in the Bay of Bengal.

Expansion mode: A file photo of an ONGC offshore platform. Bloomberg

ONGC has agreed to lend around Rs4,000 crore to OVL to fund its share of cost of developing the gas fields in A-1 and A-3 blocks and the pipeline to China.

Officials said that CNPC has offered a 49.9% stake to the consortium developing gas fields in blocks A-1 and A-3.

South Korea’s Daewoo Corp. holds 51% stake each in Block A-1 and A-3 while OVL has a 17% stake. GAIL and Korea Gas Corp. (KOGAS) have 8.5% each while the remaining 15% is with Myanmar’s Myanma Oil and Gas Enterprise (MOGE).

The consortium is investing $3.61 billion in bringing to production gas fields in the two blocks. Officials said Daewoo too was inclined to participate in the 40-inch pipeline and final shareholding in the pipeline project would be CNPC-50.9%, MOGE-7.37%, Daewoo-25.04%, OVL-8.35%, GAIL and KOGAS-4.17% each.

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