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Mitsui-Total-Unocal MOU
Japan/Mitsui/Burma Gas-2: Exclusive Rights To Yadana Output
TOKYO (AP-Dow Jones)--A consortium of Japan's Mitsui & Co.,
Total SA of France and Unocal Corp. of the U.S. signed a
Memorandum Of Understanding (MOU) Monday with the Burmese
government to become the official joint-venture partners for
Burma's $700-million Yadana gas field project, a Mitsui official
told Dow Jones Wednesday.
The consortium has been granted exclusive negotiation rights
with the Burmese government to carry out the project for the
commercial and industrial use of natural gas produced from the
offshore Yadana field, said the official.
The MOU follows a feasibility conducted during August to November
1995 by Mitsui and the Burmese government. The project, called
'Three In One,' involves three schemes: building a 250-kilometer
pipeline from the Yadana field; connecting the pipeline to a proposed
200,000-kilowatt (kW) power plant; and building a urea fertilizer
production plant with a capacity of 570,000 metric tons a year (mt/y),
said the official.
Since Burma's natural gas production from onshore fields is falling
owing to the depletion of resources, the effective use of offshore gas
is said to be one of the country's most important issues and has been
given top priority by the government, the Mitsui official noted.
Pending international cooperative loans from Japan, the U.S. and
Europe to help finance the costs of the 'Three-In-One' project, the
Mitsui-Total-Unocal consortium aims to start the industrialized use
of natural gas in July 1998, which will coincide with the expected
commencement by another consortium of commercial gas production at
the Yadana field, he added.
Actual development of the field is being handled by another
consortium, comprised of Total, Unocal and PTT Exploration and
Production PCL of Thailand, which in February 1995 signed a
production-sharing agreement with the country's national oil company,
Myanmar Oil and Gas Enterprise (MOGE).
The Mitsui-Total-Unocal joint venture is different in that it is
involved with the actual use that the natural gas is put to.
Production volumes are expected to be 650 million cubic feet per
day. Some 525 million cubic feet per day will be exported to Thailand
through another pipeline that has yet to be studied, and the remaining
125 million cubic feet per day will be consumed domestically, the
Mitsui official said.
-Mika Watanabe
(END) AP-DOW JONES NEWS 09-04-96
0354GMT
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| Shimojima Ichiroo |
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