Daewoo Makes Natural Gas Discovery Offshore Myanmar

Daewoo has made a major gas discovery of up to six trillion cubic feet offshore Myanmar in Block A-1 in the Bay of Bengal. The block is located off the Rakhine coast which borders Bangladesh and India.

The company also expects to find another seven to 12 trillion cubic feet in the same area. "The estimated size of reserves could translate into 700 million to 1.1 billion barrels of crude or liquefied natural gas, equivalent to 80 million to 120 million tons," Daewoo said in a statement. The well was drilled by Northern Drilling's drillship, Energy Searcher.

It estimated the field would have a daily production capacity of more than 500 million cubic feet, or 90,000 barrels of oil equivalent.

Myanmar's gas output has been overtaking its declining crude production due to the offshore Yetagun and Yadana gas fields.

Daewoo holds a 60% stake in Block A-1; ONGC and the Gas Authority of India Ltd hold the remaining interests.