Dutch Central Bank Sale Announcement Imminent? Message Board

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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: sea_urchin who wrote (25851)	10/4/2007 4:57:05 AM
From: GUSTAVE JAEGER	Read Replies (1) of 81083

Re: As usual, you have the story all cockeyed -- it is the US that has the grip on Myanmar, not China. And the gas goes to Thailand because the Thais have a financial interest in the project. Foreign oil&gas companies don't hold a "grip" on Myanmar... The latter merely granted them licenses to explore and develop the oil/gas fields but the Myanmar junta (and her Chinese patrons) retains the final say over its gas export policy --clue: Myanmar prefers China as gas buyer; India sees red Posted online: Tuesday , May 29, 2007 at 0009 hrs IST New Delhi, May 28 The government has decided to re-visit its future investment plans in Myanmar’s energy sector after the country chose to sell gas from its A1 and A3 blocks to China, and not to India Petroleum ministry officials told FE that India’s interest in purchasing gas had been overlooked despite the fact that Indian oil and gas PSUs had equity in the two blocks. PetroChina, which most probably will buy most of the gas, has no stake in these two blocks. State-owned GAIL (India) Ltd and ONGC Videsh Ltd together hold 30% in the A1 and A3 blocks, the lead operator being South Korea’s Daewoo International with 60% stake. Korean Gas Company holds the balance 10%. GAIL, which individually holds 20% in the A1 and A3 blocks (gas reserves in the two blocks are estimated to be of 4.794 trillion cubic feet), offered to buy the gas at $4.759 per mmbtu at a meeting called by the Myanmar energy minister earlier this month. But the minister had bluntly informed that the Myanmar government had already decided to export gas to China and hence, the Indian offer would not be considered. PetroChina actually offered a lower price of $4.279 per mmbtu (against its offer of $4.98 per mmbtu) against GAIL’s $4.759 per mmbtu. Moreover, the pipelines for bringing gas from Myanmar to China (including the offshore portion bringing gas on-land and the on-land pipeline till the Chinese border) were to be built by the consortium partners (including Daewoo, ONGC Videsh and GAIL) at a pre-decided internal rate of return (IRR) of 18%. But Myanmar is now favourably considering a Chinese proposal to pare the IRR to 12%. financialexpress.com

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