Daewoo International finalizes gas sale deal

By Nam Kwang-sik

SEOUL, Dec. 26 (Yonhap) -- Daewoo International Corp., a South Korean trading company, said Friday that a consortium led by the company has clinched a deal with a Chinese state-run firm to sell natural gas produced at Daewoo's offshore gas fields in Myanmar.

In June, the consortium signed a preliminary deal with China National Petroleum
Corp. (CNPC) to pipe natural gas into China.
The deal sets a 30-year guideline on the terms of production, transportation and
sale of natural gas to be produced at the A-1 and A-3 gas blocks off the coast of
the Southeast Asian country starting in 2012, Daewoo International said in a
regulatory filing.
The price of the natural gas to be sold to China will move in step with
international oil prices every three months, the company said.
The consortium consists of Daewoo International, Korea Gas Corp.(KOGAS), as well
as two state-run Indian companies -- Indian Oil and Natural Gas Corp. (ONGC) and
GAIL (India) Ltd. -- and the state-run Myanmar Oil and Gas Enterprise (MOGE), the
South Korean trading company said.
Daewoo International holds 51 percent of the consortium, followed by ONGC with 17
percent, MOGE with 15 percent, GAIL with 8.5 percent and KOGAS with 8.5 percent,
it said.
Daewoo International entered Myanmar's market in the late 1980s and started
resource development projects in the country beginning in 2000.
On May 28, Daewoo International signed a preliminary deal with the CNPC to expand
cooperative relations in exploring overseas gas and oil fields, including the
AD-7 gas block in Myanmar.