The Indian and Burmese Governments have revealed that ONGC engineers at a Gujarat oilfield are investing $US1.35 billion in gas projects in military-ruled Burma.
India’s Oil and Natural Gas Corp (ONGC) and Gas Authority of India Ltd (Gail) will spend SUS1.1 billion on rights to develop two gas field blocks and $US250 million on a connecting pipeline.
Burma’s military government confirmed the gas investment in a statement following broader diplomatic talks held with an Indian delegation on 1 March in its remote capital Naypyidaw. Burma “welcomed the additional investment of $US1.1 billion for gas field development and upstream projects”,
Barman said in a statement, referring only to the gas fields deal. “Both sides agreed to strengthen cooperation in this field,” The other $US250 million investment gives India a 12.5 percent stake in a $US2 billion pipeline being built by China National Petroleum Corp (CNPC), China’s top oil producer. The first gas is expected in early 2013.
ONGC will spend $US167.8 million while Gail will invest $US83.8 million in the 771-kilometre (480-mile) pipeline which will transport gas from the two blocks off the Burma coast to China. The connected gas blocks are jointly owned by South Korea’s Daewoo, Korea Gas Corp, ONGC and Gail.
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