The Ministry of Electric Power and Energy has been inviting international tenders to carry out exploration, drilling, and production of onshore and offshore oil and natural gas, and also systematically reviewing and signing contracts with successful local and foreign companies to ensure no loss to the State.

A signing ceremony for the contract between the Ministry of Electric Power and Energy and North Petro-Chem Corporation (Myanmar) Limited of China for increased oil production at the Htaukshapin-Kanni oil field was held at the Parkroyal Hotel in Nay Pyi Taw on 10 April.

In his remarks, the Union Minister stated that it is a matter of great pride for the new government to be able to sign a contract aimed at increasing crude oil production, which is urgently needed for the country and its people at the beginning of a new chapter. He added that increased crude oil production would help boost the availability of petroleum products required by the country, bringing immediate benefits to the public.

He further explained that Myanmar’s oil fields have existed for about 100 years. The Htaukshapin-Kanni oil field, for which the contract has been signed, is also about 50 years old. Therefore, modern technologies must be applied to increase production. It is essential to select appropriate technologies, suitable equipment, skilled human resources, sufficient investment, and experienced organizations. Based on these requirements, the most suitable organization was selected, and the contract was signed.

He continued that the hand-dug wells were prohibited to ensure systematic operations and environmental conservation, and 36 local entrepreneur groups were permitted to operate standard wells, and they are expected to begin operations soon, which will contribute to increased crude oil output.

The country currently imports about 97 per cent of its fuel consumption. Due to the global fuel crisis, the public is facing significant difficulties. To overcome these challenges, efforts are being made to increase the exploration and production of oil and natural gas. Moreover, the Ministry is working to refine domestically produced crude oil within the country. Plans are also underway to establish new refineries, and the Thapayakan refinery, built in 1982, will be upgraded and renovated to operate at full capacity.

Then, the North Petro-Chem Corporation (Myanmar) Limited Chairman expressed gratitude and pledged to carry out to achieve good results. — MNA/KTZH

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