Essar to scout in Myanmar

Essar Oil Ltd (EOL) today announced the signing of a production-sharing contract with the government of Myanmar for exploration in two blocks in that country. The blocks are block A2 in off-shore Myanmar and adjoining land block L.

Essar is the first Indian private sector company to enter exploration business in Myanmar. Public sector Gail India and Oil and Natural Gas Corporation are currently equity holders in two other blocks in Myanmar.

The A2 and L blocks are located between proven gas blocks and aligned with the regional corridor of gas, discovered in areas south of Bangladesh, including the Sangu gas field. Myanmar's Rakhine coast lies along the eastern side of these blocks, providing favourable logistic support, said a release.

EOL plans to conduct a feasibility study, which will include collection of geological, seismic and well-drilling data, and reprocessing and reinterpretation of existing data. The feasibility report is expected to be ready in 12 months.

EOL is carrying out exploration work in India and is aiming to become a fully-integrated oil company. It was awarded two on-shore blocks in Rajasthan and one in Mumbai offshore. In these blocks, it has completed the first phase of exploration and is now moving into the test-drilling stage.

The company was subsequently awarded an exploration block in the Cambay Basin, Gujarat, and one in Cachar, Assam. It has also won the medium-sized Ratna and R series oil fields in Mumbai off-shore for development, in partnership with ONGC and Premier Oil.