“We will take around 4% equity in the pipeline project. However, it needs to be approved by the government,” Tripathi said.
In 2008, Myanmar government had decided to sell the gas from Shwe and Shwe Phyu gas fields in A-1 block and Mya field in A-3 block —- both in the Bay of Bengal —- to China National Petroleum Corp for 30 years beginning 2013.
China National Petroleum Corp is laying the 870 km pipeline and will own 50.9% equity in the project.
ONGC Videsh (OVL), the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), also plans to buy 8.35% equity in the pipeline.
The other partners are South Korea’s Daewoo International Corp with 25.04% equity, Korea Gas Corp with 4.17% and Myanmar Oil & Gas Enterprise 7.37%.
GAIL’s share of investment in the pipeline would be $83.82 million, while OVL would invest $167.83 million.
“The boards of GAIL and ONGC Videsh have approved the investment,” Tripathi said.
ONGC chairman R S Sharma had told NewsWire18 last week that an empowered committee of secretaries has approved the investments and they are likely to be soon taken up by the Cabinet Committee on Economic Affairs.
A consortium led by Daewoo International is developing the three fields at an estimated cost of around $3.6 billion.
The three fields are estimated to hold 4.53 trillion cubic feet of certified gas reserves and are expected to start producing 14.2 million standard cubic metres per day (mmscmd) gas from mid-2013.
Daewoo International holds 51% operating interest in the two blocks, while OVL and GAIL together hold 25.5% participating interest.
Korea Gas holds 8.5% interest and state-owned Myanmar Oil & Gas Enterprise has the remaining 15%. NW18
Source : http://www.dnaindia.com/money/report_gail-ongc-videsh-buying-myanmar-pipeline-stake_1336407
Comments
Post a Comment