GAIL, OVL in Block A-3 farm-in

India’s ONGC Videsh Ltd (OVL) and Gas Authority India Ltd (GAIL) have inked an MOU to buy into South Korea’s Daewoo International Corp’s 100% stake in the offshore A-3 block. The deal, once, ratified, will give the Indian firms a 30% in the PSC.

In a statement Daewoo said, “The companies plan to begin joint pre-drilling surveys in the block later this year or early next year. Offshore drilling [will] begin in 2006.”

Daewoo will retain the remaining 70% stake in the block. The government of Myanmar, under the rules of the PSC, is entitled to around 60% of any gas produced from A-3 and the adjacent A-1 block.

Both Blocks A-1 and A-3 are believed to by hydrocarbon rich, substantiated by the discovery of between 4-6 trillion cubic feet of gas reserves in the former earlier this year.