| It is estimated that A1 block has reserves of 4 trillion cubic feet gas. Production is anticipated to be about 16 million standard cubic metre a day (MMSCMD) during the plateau period of about 15 years. |
| A team from GAIL is expected to go to Myanmar shortly where it will hold discussions with the Ministry of Energy, government of Myanmar and the state-owned Myanmar Oil and Gas Enterprise (MOGE). |
| GAIL and ONGC Videsh Limited together hold 30 per cent share in the A-1 block. The other partners in the consortium are Daewoo, which is the operator with 60 per cent share, and KOGAS with 10 per cent share. |
| MOGE's share of gas in A1 block would be approximately 11 MMSCMD including royalty and share in profit gas by virtue of participation in the development project, said officials, adding that third-party reserve certification of the gas reserves is expected by May 2006 and commercial production expected to commence by 2009. |
| Block A-1 entered the third extension period last month, which is likely to be over by October 31, 2006, with a work programme of drilling of six appraisal/exploratory wells. The drilling campaign is already under way. |
| There are many potential buyers of gas from Myanmar, which includes Thailand to which it has been supplying from two offshore producing gas fields "" Yadana and Yetagun. |
| One of the crucial issues which the GAIL team is expected to discuss is the price. At present, Myanmar is delivering gas to other countries at a price which at the delivery point of the importing country border is indexed to fuel oil, US CPI and US Oil Machinery Index. It has a fixed element and includes pipeline transportation cost till the delivery point. |
| OVL and GAIL have also been granted a share in Block A3. OVL will hold 20 per cent equity, while GAIL will hold 10 per cent equity. |
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