Business
Daewoo says finds no gas from Myanmar test drill
January 24, 2006
SEOUL (Reuters) - South Korea's Daewoo International said on Tuesday it had failed to find gas from its first test drilling at the Shwe Nilar structure in Myanmar's A-1 block.
Daewoo said last month it would conduct five to seven more drillings at the A-1 and A-3 blocks by November this year when it announced a certification of 2.88-3.56 trillion cubic feet (Tcf) of gas reserve in A-1's Shwe field.
The company said it had not decided whether it would conduct another test drilling at the Shwe Nilar structure, but it would conduct test drilling at A-1's Shwe Phyu structure in October and A-3's Mya structure in March.
Daewoo operates and owns 60 percent of the gigantic A-1 block, a discovery made early last year.
The company and other stakeholders succeeded in early March 2005 in producing gas in the block off Myanmar's west coast.
India's Oil and Natural Gas Corp. (ONGC) has a 20 percent stake and marketing firm Gas Authority of India Ltd. (GAIL) and Korea Gas Corp. (KOGAS) have 10 percent each.
The entire A-1 block, which contains the Ngwe structure, is estimated to hold 11.3-19.1 Tcf of natural gas.
Daewoo obtained the right to operate the A-3 block in 2004. The company has a 60 percent stake in the block and ONGC has a 20 percent percent. KOGAS and GAIL have 10 percent each.
Daewoo shares have more than doubled in the last five months to 34,550 won ($35.20) on Tuesday.