South Korea’s Daewoo International Corp said Friday Apr 3 it had extended exploration rights to Myanmar’s AD-7 oil and gas field, after other members of the project dropped out when the original exploration period ended in February.
Daewoo International will have a 100 percent stake in the field under the new deal, from its previous 60 percent stake.
India’s ONGC Videsh Limited had owned a 20 percent stake in the field, while another Indian firm, Gail, and state-run Korea Gas Corp each had 10 percent, it said.
The initial exploration period was from March 1, 2007 to Feb 28, 2009, but Daewoo alone extended the period to August 31, 2009.
“Because of the dispute over the field between Myanmar and Bangladesh, the other firms have decided not to extend the exploration agreement,” said spokesman at Daewoo International.
The test drilling became a source of contention between the two countries in October, with both sides sending naval vessels to the field in the Bay of Bengal.
Daewoo said that the field was “promising”, adding other members could rejoin the project once the dispute between the two countries was settled.
But in December, Myanmar officials said an initial test drill at the field failed to confirm commercially viable deposits.