OVL, GAIL tie up with Daewoo for Myanmar block

Oil and Natural Gas Corporation's foreign arm ONGC Videsh Ltd and GAIL (India) Ltd on Monday signed an agreement with South Korea's Daewoo International for acquiring 30 per cent stake in A-3 exploration block in Myanmar.

OVL will have 20 per cent and GAIL 10 per cent in the exploration asset, while South Korea's Daewoo and Kogas will have 60 per cent and 10 per cent, respectively.

Daewoo will operate the field. The four companies are also partners in A-1 block in Myanmar. Petroleum and Natural Gas Minister Mani Shankar Aiyar is on a visit to Seoul, where the agreement has been inked.

GAIL was also in talks with Australian companies to import 5-7 million tonnes of liquefied natural gas, Chairman and Managing Director Proshanto Banerjee said here. GAIL might also take part in the ongoing bidding round for oil and gas blocks in Australia, he said.

"Australia is a major LNG player and we need LNG as we are planning to restart the Dabhol power project by September 2006. We are willing to tie up for 5-7 mt LNG at the right price. Discussions on this are going on quite well," Banerjee told reporters, after a meeting with the Premier of Western Australia, Geoff Gallop.

"We will like to have long-term arrangement with price review at short intervals of three to five years," he said. Banerjee said he was confident of securing the first supply of LNG from Australia by September next year.

"We are currently in talks with North West Shelf, Woodside and Gorgon for the supply of LNG for our projects in India," Banerjee said. Shell's Hazira LNG terminal had earlier this year shipped its first cargo from the North Shelf project in Australia.

GAIL would spend $300-500 million in acquiring oil and gas assets and take part in LNG liquefaction facility in Australia, he added.

Australia has invited bids from domestic and global companies for exploration and development of 27 oil and gas blocks. The bids will be opened in March next year.

"If we get any block in Australia, we will take a minority stake in some LNG train for liquefaction to bring our share of gas to India," he said.

On the domestic front, Banerjee said GAIL was keen to participate with Indian Oil Corporation Limited for the proposed 2.5-mt per annum LNG terminal at Ennore, Tamil Nadu.