Saturday, October 22, 2005
Myanmar offers stake in oil block
Jyoti Mukul / New Delhi October 22, 2005
The Myanmar government has offered equity in an oil and gas block adjoining Assam to India. The offer was made during the recent visit of Myanmar Energy Minister Lun Thi to India.
Senior officials told Business Standard, the block lies in the Hukaung sedimentary basin of Myanmar. "The offer was madebecause our companies have worked in the same basin which extends into the Indian territory. The terrain in the area is difficult and Indian companies are better equipped to handle it," said an official.
India has shown interest in the proposal but it also wants that certain areas in the Chindwin basin be made part of the package. Myanmar has 14 oil and gas bearing sedimentary basins in the onshore area.
Exploration and production work has been carried out in only three basins out of them - Central Myanmar, Pyay Embayment and Ayeyarwady Basin. There is limited exploration activity reportedly in the other 11 basins and the Myanmar government is looking for more investment for exploring them.
Oil and Natural Gas Corporation and Oil India have worked extensively in Assam. ONGC subsidiary for offshore business ONGC Videsh, along with GAIL India, already have equities in two blocks in Myanmar. Gas has been discovered in A1 block in the offshore Shwe field.
The two companies also have stakes in the adjoining A3 block. ONGC Videsh has 20 per cent and GAIL has 10 per cent stake in the block, with Daewoo being the operator of the two blocks.
India wants to bring gas from the Shwe field through a pipeline via Bangladesh. While India, Myanmar and Bangladesh have agreed in principle to the laying of pipeline, Bangladesh has raised some bilateral issues with India before agreeing to sign a formal agreement.
Thi was in New Delhi for the first meeting of the energy ministers from the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) regional economic grouping which has seven members.
The one-day meeting concluded with a plan to build a network of gas pipelines linking its seven members - India, Bangladesh, Bhutan, Nepal, Sri Lanka, Thailand and Myanmar. -------------------------------------------------------- Block by Block
a.. The block lies in the Hukaung sedimentary basin of Myanmar.
a.. India also wants that certain areas in the Chindwin basin be made the part of the package.
a.. Myanmar has 14 oil and gas bearing sedimentary basins in the onshore area.
a.. ONGC Videsh, along with GAIL India, already have equities in two blocks in Myanmar.