GAIL says Myanmar blocks could hold more

Vol 10, PW 9 (24 Aug 06) News in Brief

GAIL feels its offshore Myanmar exploration blocks A1 and A3 could hold more than the 5.7-tcf gas estimated by reserves consultant Gaffney, Cline & Associates.

On 16th August, GAIL said first commercial gas production is expected mid-2010. GAIL and ONGC Videsh together hold 30% stake in each block.

GAIL said both blocks would produce 16m cm/d gas from three existing discoveries: Shwe (3.4-tcf), Shwe Phyu (0.5-tcf) and Mya (1.8-tcf). The resource certification indicates the total estimated gas initially in-place as between 5.7-tcf to 10-tcf, said GAIL.

A senior GAIL source tells this report that there is a 50% chance of the reserves figures exceeding the lower figure and a 10% chance of meeting the upper limit. South Koreas Daewoo operator of both blocks had earlier hired Ryder Scott for a reserves estimate.

In December 2005, Ryder Scott said the Shwe discovery in December 2003 could hold between 2.88-tcf and 3.5-tcf.