ONGC Videsh Ltd and GAIL, the two Indian partners in Daewoo's recent Shwe gas discovery off Myanmar, may have to buy their way into the field as they did not contribute to the drilling cost of the first well.
OVL and GAIL, who together hold 30 per cent interest in the A-1 gas block in Bay of Bengal, may have to pay a penalty for not contributing their share of drilling cost, industry sources said in New Delhi.
The Shwe-1A sidetrack well, which discovered a field with estimated reserves of between 4 trillion and 6 trillion cubic feet of gas, was drilled at sole risk by South Korea's Daewoo and compatriot Kogas.
"OVL and GAIL will need to pay their share of drilling cost besides a penalty which will be decided after discussions," a senior Kogas official said.
While Daewoo holds 60 per cent stake in block A-1, Kogas has 10 per cent. OVL, the overseas arm of Oil and Natural Gas Corporation, has 20 per cent interest and the remaining 10 per cent is with GAIL.
Both Myanmar and Daewoo view India as the potential market for the gas discovered in A-1 field and are keen on OVL and GAIL continuing in the consortium.
Last week, Myanmar's Oil Minister Lin Thi was here to solicit a market for the A-1 gas.
"We came here to discuss cooperation in hydrocarbon sector and to find a market for gas (found in Block A-1). India is a big market and we are exploring how that can be tapped," Thi had said after his meeting with Petroleum Minister Ram Naik.
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