The Shwe Project

In early 2004, Daewoo announced that they had struck a "world class commercial scale gas deposit" amounting to 4.2-5.8 trillion cubic feet. Recent estimates range between 10-14 trillion cubic feet. At sales prices equalling earlier gas sales to Thailand, the total value is estimated by the Shwe Gas Movement to be between US$ 37-52 billion. The Burma regime's share of this would lie between US$12-17 billion, or a hefty income of US$580-824 million per year for 20 years. With the regime's defense expenditures of over 40% of its national budget, the result is clear and devastating for the people of Burma.

Corporate stake holders in the Shwe fields:

(a)

Corporations deal with The Myanmar Oil and Gas Enterprise (MOGE) which is 100% owned and run by the military regime. Details of oil and gas contracts in military ruled Burma are well-guarded secrets.

Daewoo International purchased exploration rights through a Production Sharing Contract (PSC) with the military MOGE. In addition to the PSC fees, a standard signing bonus will have been donated under the table to relevant generals.

The Military regime owns over half of the gas produced at the A-1 block but are reported to have offered to sell also this share to GAIL, which is the official buyer of the natural gas.

Related sub-contractors: (more photos in the photos/project folder)

International companies on contracts in the A-1 and A-3 fields:

Serica Energy - Canada/Int.

Owner of the Galaxy Driller, a semi-submersible rig used in the A-1 and A-3 block, since December 2005. "Serica is a publicly traded company listed on the AIM Market of the London Stock Exchange and in Toronto, Canada on the TSX Venture Exchange with the share symbol ''SQZ''. Stock Watch and presentations are available on the Investor Centre page."

China Oilfield Services Ltd - China/Int.

Owner of the Nan Hai 2 semisubmersible rig which is stationed at the Mya well in the A-3 Block, originally on a 60 day contract which according to Daewoo is worth US$6 million.

Helicopters NZ - New Zealand

Contracted by the Daewoo consortium to transport senior officials and engineers between the Shwe fields and the main land, Rangoon and Sittwe. Two New Zealand men are piloting the helicopter, living at a hotel in Sittwe.

Swire Pacific Offshore - Singapore/Hong Kong/Int.

The offshore support vessel "Pacific Rover," is owned by a branch of the Swire Pacific Ltd, under John Swire & Sons (HK) Limited, which is part of the International Swire Group (Organisational chart )

Viking Engineering - Singapore/Sweden

Owners of the survey ship "Emma" which was contracted by Daewoo to operate in the A-1 block in September 2006. Singaporean company owned and managed by Swedes.

Suz Tractebel - Belgium

Hired by Indian GAIL, as a technical consultant to carry out studies for preparing a Detailed Feasibility Repoer (DFR), environment management plan (EMP), a Rapid Risk Analysis (RRA) for the India-Burma gas pipeline project via northeastern Indian states.

Other companies which have operated in the Shwe fields include:

Ryder Scott Co - US

Snamprogetti - Italy

Frontier Drilling A/S - Norway

Atwood Oceanics Inc - Texas, US

(a) http://biz.yahoo.com/e/050106/atw8-k.html

Sources:

[1] www.daewoo.com

[2] http://news.xinhuanet.com/english/2004-12/14/content_2332171.htm, Dec 14, 2004

[3] http://jang.com/pk/thenews/jan2005-daily/14-01-2005/business/b14.htm, Jan 14, 2004

Current Drilling Activity:

The Galaxy Driller, another rig operating off the Arakan coast, Western Burma. Both ships are contracted by South Korea's Daewoo International Corp.

The Nan Hai 2 semi-submersible drill rig used in both A-1 and A-3 blocks. Owned by China Oilfield Services Ltd.

Helicopters NZ at Sittwe Airport