The Government of Myanmar has approved the assignment agreement signed between Daewoo and GAIL for assignment of 10 percent stake in A-3 block, Myanmar to GAIL

The block A-3 was awarded to Daewoo International Corporation of Korea in Feb, 2004. Thereafter, GAIL (India) Limited had signed an assignment agreement on 3rd October, 2005, in Seoul for equity participation in the A-3 Block in off-shore Myanmar. As per the Production Sharing Contract, the assignment agreement required formal ratification of the Government of Myanmar

Drilling of the first exploratory well in Block A-3 has been completed recently, resulting in Gas discovery. Appraisal of the discovered prospect and further exploratory drilling in the block is likely to commence by the year end.

The A-3 block, measuring 6,780 sq. km., is situated adjacent to the A-1 Block, where commercial gas discoveries have already been made. GAIL is a consortium partner in A-1 block and is the preferred buyer for the gas produced from the A-1 Block. GAIL has been considered as the preferred buyer to buy Daewoo’s share of natural gas from the A-3 block as well

In the event, commercial gas reserves are further established in block A-3, the overall combined reserves base of A-1 and A-3 shall enhance the robustness of gas export project to India as well as optimization of capital investment required in upstream and downstream facilities.

GAIL has already commissioned Detailed Feasibility study for an onland gas pipeline route via North-East India and this study will be available by end April 2006. This would be presented to the Myanmar side in a Joint meeting tentatively scheduled in early May 2006