KALADAN NEWS

Dated: Sunday, January 18, 2004

Large Natural Gas Deposit Discover at Offshore Of Arakan Coast

Rangoon, Jan-18: A major natural gas filed has been discovered in an area of offshore of Arakan Coastline, according to the New Light of Myanmar. 

The new find block A-1 of Burma’s Arakan State contains “a world class commercial scale gas deposit” estimated to hold 42 trillion to 5 billion cubic feet of gas, with a top side potential of 14 trillion cubic feet (tcf).

The Burma Oil and Gas Enterprise reached an agreement with the Daewoo International Corporation of the Republic of Korea to explore Arakan Coast on 4^th August 2000 under production sharing contract. 

Seismic survey conducted by to 3,552.75 line kilometers in the area on 200% follow up measures was then taken. The offshore drilling machine Energy Searcher started drilling at shwe (gold)-1 test well in the block on 21^st November 2003 and struck the gas deposit on 26^th December 2003 at the G-5 sand Layer 10,588 feet below the seabed.

The Daewoo International Corporation has a 60 percent stake in the business, while Korea Gas Corporation, another ROK enterprise is holding 10 percent of the share. ONGC Videsh Ltd. Of the Republic of India, 20 percent; and Gail (India) Ltd., 10 percent.

Burma will have the rights to enjoy the proportionate share of the benefits. The country is going to have shares of the business, and she will gain considerable profit from the gas deposit.

It takes several years to bring a field into production.

It is expected Gail itself for the transportation of gas either by an offshore pipeline with the land fall point in south of Bengal or through an offshore pipeline laid across Burma to enter India at suitable point in Mizoram and traverse the North-East to finally emerge in the north Bengal, according to Financial Times of India

The gas field is estimated to have a capacity of producing 500 million cubic feet of gas per day.

The plan to export natural gas from Arakan to India has been kept a secret from the people of the state. We opposed the SPDC selling the natural gas from Arakan to foreign companies. The gas sale will not benefit to the people of Arakan, or the people of Burma. The SPDC has built an artillery camp in Pauk Taw Township, 20 miles north of Akyab (Sittwe) to provide security to the gas works.

For further information, please contact at:

Mobile (+880) 11 227 138

E-mail: [email protected]