Daewoo plans 8-well drilling on Myanmar Block A-1

Vol 8, PW 3 (05 May 04) News in Brief
     

From July onwards, Daewoo plans to drill eight wells on Myanmars offshore Arakans block A-1, where Indian companies have a combined 30% stake.

PETROWATCH learns Daewoo plans six appraisal wells and two exploration wells on this block by June 2005 at a total cost of $90m. Indias OVL (20%) and GAIL (10%) are part of the A-1 consortium led by Daewoo, which has 60%.

South Koreas Kogas holds 10%. Exploration drilling will be carried out on the lower portion of A-1.

Current gas reserves at A-1 are estimated at 4 to 6 trillion cubic feet. Last November, Daewoo struck gas in its first well on the block: Shwe-1.

India was initially sceptical about the success of Shwe-1 drilled as a sidetrack and contributed no money for the well but soon reversed its position on indications of a discovery. Later this month, Daewoo will set up an operations office staffed by 30 people in Akyab, capital of the Arakans province.