OVL signs PSC for three deepwater blocks off Myanmar

ONGC subsidiary ONGC Videsh Ltd. has signed a production-sharing contract (PSC) with Myanmar Oil and Gas Enterprise for three deepwater exploration blocks: AD-2, AD-3, and AD-9. OVL will operate al three blocks with 100% interest.

Offshore staff

NAY PYI TAW, Myanmar -- ONGC subsidiary ONGC Videsh Ltd. has signed a production-sharing contract (PSC) with Myanmar Oil and Gas Enterprise for three deepwater exploration blocks: AD-2, AD-3, and AD-9. OVL will operate all three blocks with 100% interest.

The blocks were awarded to OVL on the basis of a mutual understanding and cooperation between India and Myanmar in the hydrocarbon sector. All of the blocks have good hydrocarbon potential, OVL says. They are close to shallow-water gas blocks A-1 and A-3, where OVL is part of the consortium developing the field.

Block AD2 covers 8,100 sq km (3,127 sq mi). Block A3 covers 9,900 sq km (3,822 sq mi). And block AD3 extend over 7,800 sq km (3,012 sq mi). Water depth ranges from 1,500 m to 3,000 m (4,921-9,843 ft) along the Rakhine coast.

A five-year exploration period covers four phases for block AD2. Blocks AD3 and AD9 have a seven-year exploration period. Upon discovery of oil and gas, development and production operations will extend to a period of 20 years. OVL will invest $150 million on a minimum work commitment in the blocks for all phases.

ONGC/OVL and MOGE have been cooperating in the field of hydrocarbon exploration studies in Myanmar. In 2005, a joint Regional Geological Study was carried out by the two agencies in an onshore geological setting in Myanmar to understand the hydrocarbon potential. The Institute of Drilling Technology, ONGC had also imparted training to a team of oil & gas professionals from Myanmar. The cooperation between the two agencies is expected to expand, OVL says.

9/25/2007

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