Wednesday 15 January 2014

Daewoo International starts production at Myanmar gas field

SEOUL, Jan. 13 (Yonhap) -- Trading and energy firm Daewoo International Corp. said Monday it started producing natural gas last week at a gas field off the western coast of Myanmar.

The gas field, developed since 2004, consists of three blocks -- Shwe, Shwe Phyu and Mya. The latest production has started at the Shwe block, the company said.

Daewoo International has been producing 200 million cubic meters of natural gas a day in the block of Mya since July last year. With the Shwe block now added, the company is expecting to increase its daily gas production capacity to 500 million cubic meters, it said.

The gas will be exported to China or sold in Myanmar.

The gas field is estimated to have 4.5 trillion cubic meters worth of reserves, equivalent to 750 million barrels of crude, or three years' worth of consumption in South Korea.

The volume is the largest among overseas oil or gas fields being explored by South Korean companies.

Daewoo International expects to reap 350 billion won (US$331.19 million) to 400 billion won in earnings before tax.

The Shwe Phyu block, the last untapped area of the gas field, will go into commercial production as early as 2020, Daewoo International said.

source: Yohap News

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