South Korea Bids for More Burma Gas Development

Published on Jul 19 2010 // News Update

June 19, 2010: The South Korean government is promoting greater involvement in exploration and production of gas in Burma by Korean companies.

Weekly Business Roundup (June 19, 2010)

Agreement has been reached in principle for Korean lead development of two more blocks, one offshore and one onshore, while six other potential blocks are under discussion, said the semi-official South Korean news agency Yonhap this week.

It follows a visit to Burma by leading politicians from South Korea’s governing political party.

It’s understood that go ahead has been given by the state-run Myanmar Oil and Gas Enterprise (MOGE) for Korean firms to take over development of the A-7 offshore block in the Bay of Bengal and the B-2 onshore block in northwestern Sagaing Division.

The offshore block was abandoned by the Indian state firm GAIL after the Burmese government chose Chinese firms instead of Indian to buy the huge gas tranche in the Shwe offshore field.

The B-2 Block is currently being probed by the small Russia-linked Silver Wave Energy company in partnership with MOGE.

Two blocks in the Shwe field, with a confirmed 200 billion cubic meters of gas, are being developed by South Korea’s Daewoo International industrial conglomerate and Kogas, both of which are partly owned by the Korean government.

Sources: Irrawaddy News