Myanmar and Chinese companies sign enhanced oil recovery agreement

It is said that this is a project that will bring immediate benefits as increased crude oil production will lead to increased fuel consumption.

The Ministry of Electricity and Energy and China’s North Petro-Chem Corporation (Myanmar) Limited have signed an agreement to increase oil production in the Shapin-Kanni oil field.

At the signing ceremony, the Union Minister said that it is a project that will bring immediate benefits as increased crude oil production will lead to increased fuel prices.

On April 11, a signing ceremony for an enhanced oil recovery agreement to increase oil production in the Shapin-Kanni oil field between the Ministry of Electricity and Energy and North Petro-Chem Corporation (Myanmar)

Limited was held at the Park Royal Hotel in Nay Pyi Taw.

The signing ceremony was attended by Union Minister U Ko Ko Lwin, deputy ministers, permanent secretaries, directors-general, leading directors, and company officials.

The Union Minister said that as our new government begins a new chapter in the country, it is a great honor to be able to sign an agreement to increase the production of crude oil, which is especially needed by the state and the people. If the crude oil production increases, it will be possible to increase the fuel needed by the state, so it is a project that will bring immediate benefits to the people. Myanmar’s oil fields are old oil fields with an age of around 100 years. The Tshering-Kanni oil field, which was signed today, is also about 50 years old. Therefore, in order to increase production, modern technologies must be used. Therefore, it is necessary to select and use the right technology, select and use appropriate equipment, and invest the necessary human resources and capital, and have experience. Therefore, the most suitable organization was selected and signed after examining these basic requirements.

In addition, in order to meet the domestic demand for crude oil, local ethnic entrepreneurs have been allowed to close down oil wells and 36 local business organizations have been allowed to drill standard wells in order to ensure that the oil drilling industry is carried out systematically and to prevent environmental damage. This will begin soon, and crude oil production will increase. The country imports 97 percent of its fuel consumption, so our people are facing a very difficult situation when fuel shortages occur around the world. In order to overcome these difficulties, we are working to explore more oil and natural gas, and the Ministry of Electricity and Energy is working to refine the crude oil produced ourselves. We are planning to establish new oil refineries in the country, and the Tham Prakan Oil Refinery, which was built in 1982, will be upgraded and renovated to operate at full capacity, he said.

Then, the Chairman of North Petro-Chem Corporation (Myanmar) Limited expressed his gratitude and promised to work hard to achieve good results as soon as possible, in accordance with the commitments in the contract.

The Ministry of Electricity and Energy has invited international tenders to conduct onshore and offshore oil and natural gas exploration, drilling, and production activities, and is scrutinizing the contracts signed with domestic and foreign companies that have won the tenders, taking responsibility for ensuring that there is no loss to the state.

Source: Asianews