The Hindu Business Line : GAIL signs deal for equity participation in Myanmar blocks

The agreement provided OVL and GAIL entry in the A-3 block, which has major gas potential. OVL will hold 20 per cent equity while GAIL will hold 10 per cent equity.

New Delhi , Oct. 3

GAIL (India) Ltd has signed an agreement in Seoul for equity participation in the offshore blocks in Myanmar.

According to a statement issued here, the company said the agreement has been signed to participate in the A-3 block in offshore Myanmar.

GAIL with Daewoo Corporation and Kogas of Korea signed the agreement on Monday. The A-3 block is close to the recently discovered A-1 block with estimated reserves of five trillion cubic feet. GAIL is a consortium partner in the A-1 block and has been considered as the preferential buyer to buy Daewoo's share of natural gas from the A-3 block.

The A-1 block is set to start commercial production in three to four years. In the event of gas discoveries in A-3 block, the combined potential of the region will be immensely enhanced.

ONGC Videsh Ltd (OVL) and Daewoo signed agreements for assignment as well as joint operation that will enable Indian companies to take 30 per cent equity in the A-3 block in Mynamar, which was won by the Korean company last year.

The agreement provided OVL and GAIL entry in the A-3 block, which has major gas potential. OVL will hold 20 per cent equity while GAIL will hold 10 per cent equity. The agreement was signed in the presence of the Petroleum Minister, Mr Mani Shankar Aiyar, and the Korean Director General of Commerce, Industry and Energy, Mr Bong-Hyeon Joo.

Asset base up

NEW DELHI: GAIL (India) Ltd on Monday said that its asset base has gone up by 20 per cent with the transfer of assets to Ratnagiri Gas and Power Ltd (RGPPL).

The Bombay High Court had passed an order paving the way for the transfer of assets of the erstwhile Dabhol Power Company to RGPPL, the joint venture company promoted by GAIL and NTPC, a company statement said.

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