ONGC, GAIL in Myanmar government consortium to sell natural gas to China

29 December 2008

Public sector oil companies ONGC Videsh and GAIL India are members of a Myanmar government consortium that will export gas from the Myanmar government's offshore fields to China National United Oil Corporation.

The consortium, Myanma Oil and Gas Enterprise under Myanmar's ministry of energy, also includes Korea's Daewoo International Cooperation and Korea Gas Corporation.

Myanmar's government and the four overseas companies were part of a consortium that finalised the deal to sell natural gas to China.

The gas to be exported through pipelines is from Myanmar's Shwe natural gas project at Block A-1 and A-3 at Rakhine coastal region.

ONGC Videsh holds 20 per cent in the consortium while the South Korean multinational Daewoo has a 60 per cent share. Gas Authority of India Ltd and the Korea Gas Corp each hold 10 per cent.

This will be the first sales of gas from Myanmar's northwestern offshore fields, after the signing of this agreement.