OVL and GAIL (India) in collaboration with Daewoo Corporation and Korea Gas Corporation (KOGAS) are planning to invest $3.73 billion (approx Rs 17,933.84 crore) for their natural gas find in Myanmar.

The four partners are expected to invest $2.79 billion (approx Rs 13,141.32 crore) in the three gas fields in block A-1 and A-3 off the Myanmar coast and another $936.26 million (approx Rs 4,501.2 crore) for laying under-sea pipeline to take the gas to the shore.

Daewoo holds 60 per cent stake each in block A-1 and A-3 while ONGC Videsh Ltd (OVL) has 20 per cent interest.

Myanmar Oil and Gas Enterprise has right to take 15 per cent, subsequent to which Daewoo will have 51 per cent, OVL 17 per cent and GAIL and KOGAS 8.5 per cent each.

Daewoo has prepared a preliminary Field Development Plan (FDP) to tie-up Shwe and Shwe Phyu in block A-1 and Mya in block A-3 together to produce 500 million standard cubic ft per day of gas for 19 years. The field life is envisaged for 28 years. The final FDP is expected to be submitted by August 2009.

As per the preliminary FDP, the gas fields are likely to be developed in phased manner, wherein Shwe and Mya (North) fields in Phase I, addition of Mya (South) field in Phase II, addition of Shwe Phyu field in Phase III and installation of future compressor once pressure declines at Central Process Platform.

First gas production is likely to commence in first quarter of 2013. The produce from these fields is likely to be sold to China for $7.72 per million British thermal unit at the landfall point in Myanmar.

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