New Delhi, Feb. 18: The government today approved investments of $1.33 billion by Oil and Natural Gas Corporation and GAIL (India) Limited in gas field development projects in Myanmar. Gas from the project will be shipped to China.

ONGC Videsh, the overseas arm of ONGC, will invest an additional $832.54 million in the projects, taking its total investment so far to more than $1 billion.

Gas transporter GAIL will invest $502 million in the projects — a gas field and an onshore pipeline to China.

The CCEA, headed by Prime Minister Manmohan Singh, allowed OVL and GAIL to invest in the pipeline being constructed by China National Petroleum Corp to transport gas found in blocks A-1 and A-3 off the Myanmar coast.

OVL can now acquire a 20 per cent participating interest in upstream oil development for which it will pay $664.7 million and another $167.84 million for an 8.35 per cent stake in the pipeline.

OVL expects the two investments to yield an internal rate of return of 12.53 per cent and 15.5 per cent, respectively.

Gas from the blocks would be sold to China for $7.72 per million British thermal unit at a landfall point in Myanmar.