Daewoo Sells Exploration Rights in Myanmar

Daewoo International Corp. plans to sell some of its natural gas exploration rights in Myanmar. The Company is in talks with ONGC Videsh Ltd, a subsidiary of Oil and Natural Gas Corporation, Gas Authority of India Ltd. and Korea Gas Corp. (KOGAS) for the sale of rights in an offshore gas block in western Myanmar. Daewoo would sell its 30 percent interest in the block with 20 percent of it going to ONGC and the remaining 10 percent expected to go to either to GAIL or to KOGAS. In August of 2000 the Government of Myanmar granted Daewoo International development rights in the block which is located in the Bengal basin.

The company, in the second phase of its feasibility study, has so far estimated natural gas reserves of a minimum of three trillion cubic feet worth $10 billion. Exploratory drilling will be decided in 2003 and commercial production will expected to begin in 2008.