Essar Oil looking at third block in Myanmar

Vol 9, PW 17 (01 Dec 05) News in Brief

Essar Oil is likely to bid for a third exploration block in Myanmar, which is offering 18 blocks to potential investors.

An industry source reveals Mumbai-based Essar believes block AD6 holds good promise. Of the 18 blocks on offer only AD6 lies in shallow waters; the others are in the deep waters offshore Myanmar.

AD6 measures about 1000-sq km and is bounded on the south by the prospective Daewoo-operated block A-1 and Essar-operated block A-2. To the northeast sits Essar-operated onland block L.

Essar has already begun work analysing old seismic data from blocks A-1 and L. They bought the data package for $700,000 and have digitised it in an Australian laboratory, we hear.

Essar has nine months to study the data and decide if it wants to enter the next phase. They have four or five more months left, we learn.

If Essar enters the next phase they are committed to drill one well on each of block.