GAS DEVT & UTILIZATI

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The first IDA operation in the petroleum sector seeks to help alleviate the growing shortage of petroleum, which has hindered the growth of the Burmese economy, by supporting further development of the Payagon gas field to provide about 35 million cubic feet per day of additional gas to substitute for diesel and fuel oil in the Rangoon area. The Gas Development and Utilization Project, which corresponds to Phase I of Burma's Payagon Gas Development Program (PGDP), supports: (a) the establishment of a sound gas pricing policy based on full cost recovery as a minimum; (b) drilling and completion of production wells, as well as installation of surface facilities, and gas transmission and distribution pipelines for Rangoon. Further to this, the project involves (c) appraisal of additional reserves for Phase II of the PGDP; (d) gas subsector investment planning; (e) oil reservoir and production studies to evaluate options for increasing domestic oil production; and (f) introduction of modern petroleum engineering practices, technical assistance and training.