KOGAS has successfully expanded its scope of business from mere import and distribution of natural gas, to global projects including exploration and production, enabling us to secure a stable supply of energy and expand our business portfolios. It will continue to seek diversification of its income sources and a stable supply chain, while laying the groundwork to become a global, total energy company.
KOGAS entered into a gas field development project in the A1/A3 Block of Myanmar’s northwestern sea in November 2001. A consortium composed of Daewoo International (60%), KOGAS (10%), ONGC-Videsh Limited (20%) and GAIL (10%) has almost completed exploration of the east mining block and has acquired a certificate for gas reserves of 4.53Tcf (based on 2P) from the GCA and is exploring the possibilities of additional reserves. The consortium is also in talks for sales with potential purchasers. Upon conclusion of purchase agreement, the Corporation will announce the commercial discovery and commence production development to extract the natural gas.
To address potential environmental and safety risks, we have conducted an official assessment of the environmental impact of a platform construction. Moving forward, we will ensure full compliance with global standards for environmental and human rights issues as we develop this site.
As part of our efforts to expand our upstream business and secure potential LNG sources, we formed a consortium with 3 partners including Petronas Carigali to participate bidding for exploration rights for, led by the Designed Authority (DA), and won the development rights to the JPDA 06-102 Mining Block in 2006. The Consortium plans a full-scale exploration project for three-dimensional elasticity wave exploration and exploration vessel operations for three years, commencing in 2007. Once economically feasible gas reserve is identified, we will proceed with development to secure a stable and incremental supply of energy resources for Korea, with ensuing securing of new sources of income for KOGAS.
* Composition of Consortium: KOGAS (30%), Petronas Carigali (50%), Samsung Corp. (10%), LG International (10%)