Essar Oil Limited (EOL) signed a production-sharing contract with the Government of Myanmar for exploration of oil exploration in two blocks - one each for onshore and offshore blocks. The contracts were signed by Mr U San Lwin - Managing Director of Myanmar Oil & Gas Enterprise, on behalf of the Government of Myanmar. The Minister for Energy, Brigadier General Lun Thi was also present. Mr AN Sinha signed the contracts on behalf of Essar Oil Limited.
Essar is the first Indian private sector company to sign an agreement in this area in Myanmar.
EOL's bid for the two contiguous exploration blocks in offshore (Block A2) area and adjoining on land area (Block L) was made after detailed examination of geo-scientific data at MOGE office in January 2005 by the EOL team.
The blocks are ideally located between proven gas blocks and aligned along the regional corridor of gas discoveries south of Bangladesh, including the highly productive Sangu Gas field in Bangladesh. The Rakhine coast lies along the eastern side of these blocks, providing favorable logistic support.
Essar Oil is a fully integrated oil company with operations covering the entire value chain of oil exploration to retailing of petroleum products. It is currently setting up a 10.5 mmtpa refinery at Vadinar, Gujarat on the West Coast of India. It plans to set up 2500 retail outlets by mid-2006, which will further be increased to 5000 retail outlets by 2008. The company has commissioned over 500 retail outlets across the country.
EOL is a part of the Essar Group, one of India's largest corporate houses, with interests spanning the manufacturing and service sectors - steel, shipping, power, oil and gas, telecom and construction. The group has an asset base of over Rs20,000 crore (USD 4.4 billion).