Daewoo makes giant gas discovery in Rakhine basin off northwestern Myanmar

Jan. 16, 2004
Daewoo International Corp., Seoul, and Korea Gas Corp. discovered 4 to 6 tcf of recoverable gas on Block A-1 in the nonproducing Rakhine basin shelf in the Bay of Bengal off northwestern Myanmar and plans to pursue other similar objectives on the block.

Alan Petzet
Chief Editor-Exploration and Economics
HOUSTON, Jan. 16 -- Daewoo International Corp., Seoul, and Korea Gas Corp. discovered 4 to 6 tcf of recoverable gas on Block A-1 in the nonproducing Rakhine basin shelf in the Bay of Bengal off northwestern Myanmar and plans to pursue other similar objectives on the block.

The Shwe-1/1A wildcat is the first wildcat drilled in the Plio-Pleistocene section off northwestern Myanmar and the country's first offshore discovery since Yetagun gas field in the Gulf of Martaban 12 years ago, Daewoo said. This is Daewoo's first well on its first project as operator.

Based on the first well results and 2D seismic analysis, the new field's areal extent is estimated at 14,900 acres. In view of the high productivity of the gas sands with 24% porosity and 190 md permeability, the expected daily production is to exceed 100 MMcfd.

Several seismic anomalies in Block A-1 appear similar to the one at the Shwe discovery, indicating considerable upside exploration potential, Daewoo International said.
The discovery well is several dozen kilometers south of southernmost Bangladesh.

Daewoo said intensive appraisal drilling will begin in November 2004 following a large 3D seismic survey in March and April before monsoon season.

Well and reservoir details
The Shwe-1A well, a sidetrack well of Shwe-1, was drilled to 10,210 ft in 361 ft of water.

The sidetrack penetrated a 191-ft gross gas interval that produced gas at a rate of 32 MMcfd by drillstem test of main sand unit.

Shwe-1/1A was originally programmed as a directional well. After encountering serious drilling problems, Daewoo International decided to drill a vertical well, Shwe-1.

After drilling vertically to 10,102 ft with disappointing results at the first three objectives, the sidetrack, Shwe-1A, was drilled to penetrate the deepest and most promising objective at sole risk by Daewoo International and Korea Gas. The larger block group of companies originally had participated in the well (OGJ Online, Dec. 19, 2003).

As a result, thick gas sands with a total net pay of 90 ft were discovered between 9,611 ft and 9,802 ft in the sidetrack. The discovered sands are 930 ft from the vertically penetrated location.

Shwe, or "gold," is a stratigraphic trap drilled at the fringe of a submarine fan system in the Bengal Fan. It is expected that the pay sands will thicken toward the central part of the fan system.

The discovery was a result of elaborate seismic attributes analysis and sequence stratigraphic study, said Dr. Su-Yeong Yang, vice-president in charge of energy development of Daewoo.

Daewoo owns a 60% stake in Block A-1. In addition to Korea Gas 10%, the nonoperating partners are ONGC Videsh Ltd. 20% and GAIL (India) Ltd. 10%.