India to sign production sharing pact for 3 deep water exploration blocks in Myanmar

New Delhi, Sept 22 : ONGC Videsh Ltd (OVL) will sign Production Sharing Contracts (PSCs) for three deep water exploration blocks with the Myanmar Oil and Gas Enterprise (MOGE), a Myanmar government's undertaking.

Petroleum Minister Murli Deora, who is leaving on Sunday for a two-day visit to Myanmar, will also attend the signing of the contract.

Deora will be accompanied by Petroleum Secretary M S Srinivasan and OVL MD R S Butola.

During his visit, Deora will hold discussions with his Myanmar counterpart Brigadier General Lun Thi on possibilities of enhancing bilateral cooperation in hydrocarbon sector.

The OVL has acquired 100 percent participating interests in deep water blocks --AD-2, AD-3 and AD-9 -- in Myanmar offshore.

The aerial extent of the blocks AD-2, AD-3 and AD-9 is 8,100 square kilometres, 9,900 sq km, and 7,800 sq km respectively. Water depth in the block areas ranges from 1500 m to 3000 m off the Rakhine coast of Myanmar.

Earlier, OVL and GAIL have participated in the exploration activities in A-1 and A-3 blocks in Myanmar.

In Blocks A-1 and A-3, OVL and GAIL each have 20 per cent and 10 per cent participating interests respectively. Gas discovery was made in 2004 and 2005 from Shwe and Shwe Phyu in block A1 which is estimated at 3.34 and 0.5 tcf respectively.

In Block A-3, gas discovery was made in January 2006 and the consortium has established a gas reserve of 1.52 tcf in the Mya Gas field.

The total recoverable reserves of gas from A1 and A3 blocks are estimated to be about 4tcf (final study is in progress). The first gas is anticipated in early part of 2011.

India is making attempts to acquire oil and gas assets in Myanmar.

Currently, total oil and gas production of Myanmar is about 10,000 barrel oil per day (bopd) and 820 million standard cubic feet per day (MMSCFD) respectively.

The total oil and gas reserves in Myanmar are estimated at 50 million barrel (MMBL) and 10 trillion cubic feet (tcf) respectively.

Myanmar Oil and Gas Enterprise produces about 10,000 barrel oil per day and 120 MMSCFD gas from onshore oil and gas fields.




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