ONGC Videsh lobbies Myanmar for stake in A-3

Vol 8, PW 5 (02 Jun 04) News in Brief
     

ONGC Videsh is lobbying hard with Myanmars military junta to get a stake in the A-3 exploration block won by Daewoo last February.

Our claim is that since OVL had also reached the final stages in negotiations with the Myanmar government we should be given a stake in A3, a company official tells PETROWATCH. It was not the price but better terms that Daewoo offered which resulted in them beating OVL.

An OVL team has visited Yangon and put its case before Myanmars energy ministry. Daewoo is making it clear it does not wish to include OVL or any other company in the A-3 block.

A-3 sits next to the prolific 6,780-sq km A-1 block in the Bay of Bengal, where Daewoo holds 60%, OVL holds 20% and GAIL and Korea Gas Corporation each hold 10%. A-1 holds estimated gas reserves of up to 14-tcf.

Daewoo is expected to start exploration at A-3 in early 2006.