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Daewoo Plans Start of Development for Myanmar Gas Project
01/10/2011 - Posco affiliate Daewoo International is moving forward on the Myanmar gas project, with plans to start developing gas resources at the country’s A1 and A3 offshore blocks as early as May 2013.
Posco affiliate Daewoo International is moving forward on the Myanmar gas project, with plans to start developing gas resources at the country’s A1 and A3 offshore blocks as early as May 2013.
Backed by the governments of both Korea and Myanmar, the gas project is one of Daewoo’s key business projects. Daewoo owns 51% of the shares in the two blocks.
Besides Daewoo, additional shareholders in the project include India’s National Natural Gas Clearinghouse (17%), Myanmar Oil and Gas Enterprise (15%), Korea Gas Corp. (8.5%) and India`s Oil and Natural Gas Corp. (8.5%).
The two offshore blocks have been estimated to have between 4.5 and 7.8 billion square feet of natural gas. Once production begins, the gas blocks are expected to produce 5000 million square feet of natural gas each day for 30 years.
Gas resources will be sold to CNUOC, an affiliate of the China National Petroleum Corp., for which the two parties plan to connect gas pipes from Myanmar to inland China. The plan, up until now, has been managed successfully in terms of finance.
Daewoo International is currently investing $4.7 to $4.8 billion in Myanmar, and its business partners are sharing the financial burden with the company relative to their portion of the investment. Daewoo plans to fund the project with loans and direct investments, and the company does not expect to have any problem as its funding program has almost been finalized.
Daewoo International is currently focusing on energy business. It is expected that this will create a synergy between the company and Posco. Based on the synergy, Posco will seek to evolve into a comprehensive material and energy company.
The two offshore blocks have been estimated to have between 4.5 and 7.8 billion square feet of natural gas. Once production begins, the gas blocks are expected to produce 5000 million square feet of natural gas each day for 30 years.
Gas resources will be sold to CNUOC, an affiliate of the China National Petroleum Corp., for which the two parties plan to connect gas pipes from Myanmar to inland China. The plan, up until now, has been managed successfully in terms of finance.
Daewoo International is currently investing $4.7 to $4.8 billion in Myanmar, and its business partners are sharing the financial burden with the company relative to their portion of the investment. Daewoo plans to fund the project with loans and direct investments, and the company does not expect to have any problem as its funding program has almost been finalized.
Daewoo International is currently focusing on energy business. It is expected that this will create a synergy between the company and Posco. Based on the synergy, Posco will seek to evolve into a comprehensive material and energy company.
