The China National United Oil Corporation (CNUOC), Daewoo International Group Corporation [with partners South Korea Gas Corporation (10%), India's ONGC Videsh Ltd (20%) and Gas Authority of India Ltd (GAIL, 10%)] and Myanmar signed a 30-year gas pact involving the Shwe Project on 24 December 2008 Wednesday.
The natural gas deposits Shwe gas project (comprising of Shwe and Shwephyu fields) located at A-1 block and block A-3 (Mya field) in Myanmar's Rakhine offshore area was developed and exploited by the Daewoo consortium (60% stake in the project) and the 24 December 2008 pact concluded the sale and transport of natural gas from offshore blocks A-1 and A-3.
The Shwe field is estimated to contain a gas reserve of 4 to 6 trillion cubic-feet (TCF) or 113.2 to 170 billion cubic-meters (BCM), while the Shwephyu 5 TCF and the Mya 2 TCF have a combined proven reserve of 5.7 to 10 TCF of gas.
Myanmar is rich natural gas offshore deposits with three main large offshore oil and gas fields and 19 onshore ones and recoverable reserve of 18.012 trillion cubic-feet (TCF) or 510 billion cubic-meters (BCM) out of89.722 TCF or 2.54 trillion cubic-meters (TCM)'s estimated reserve of offshore and onshore gas (in addition to 3.2 billion barrels of recoverable crude oil reserve).
According to the Central Statistical Organization, in the fiscal year 2007-08, Myanmar produced 7.62 million barrels of crude oil and 13.393 BCM of gas and had drawn in 3.243 billion dollars in 85 projects as of the end of 2007 ever since the country opened to such investment in late 1988. Its gas industry now stands the second in the country's foreign investment sectorally after electric power.
In early 2009, China will begin construction of oil and gas pipelines from the Kyaukpyu port on the Bay of Bengal in proximity to the Yunnan Province, a US $2.5 billion project that was inked pipeline project in November 2008. Kyaukpyu Port is part of China’s two-ocean strategy in geopolitics, involving the extension of its influence in both the Pacific and India oceans, reduces China’s dependence on the Straits of Malacca.
Einnews, “Companies from China, Myanmar, S. Korea sign gas pact in Myanmar” dated 25 December 2008 in the EIN news website [downloaded on 30 December 2008], available at www.einnews.com/thailand/newsfeed-thailand-energy
Wai, Moe, "China Signs Burmese Gas Deal for 30-year Supply" dated 28 December 2008 in the Irrawaddy/Sanooaung website [downloaded on 30 December 2008], available at http://sanooaung.wordpress.com/2008/12/28/china-signs-burmese-gas-deal-f....
Xinhua, "Companies from China, Myanmar, S. Korea sign gas pact in Myanmar" dated 25 December 2008 in the People's Daily website [downloaded on 30 December 2008], available at http://english.people.com.cn/90001/90778/90858/90863/6561510.html