Nay Pyi Taw, April 10 - To resolve the crisis of importing 97 percent of domestic fuel consumption and to increase crude oil production from the mature Htaukshabin-Kanni oil field, the Ministry of Electricity and Energy today signed an Enhanced Oil Recovery Contract with the People's Republic of China-based North Petro-Chem Corporation (Myanmar) Limited (NPCM).

The Union Minister, alongside senior ministry officials and company representatives, attended the signing ceremony held at the Park Royal Hotel in Nay Pyi Taw on April 10.

"It is a matter of pride to be able to sign an agreement to increase the production of crude oil, which is highly needed by the state and the people," Union Minister U Ko Ko Lwin stated at the ceremony. The minister further noted that increased crude oil yields will enable a boost in domestic fuel refining, delivering immediate benefits to the public.

Mature Oil Fields and Technological Needs

Most of Myanmar's oil fields are approximately a century old, and the Htaukshabin-Kanni field, subject to this newly signed contract, has been active for about 50 years. Consequently, boosting production necessitates modern technology, appropriate machinery, and substantial capital. The ministry indicated that NPCM was thoroughly vetted and selected as the most suitable organization capable of fulfilling these requirements harmoniously.

Fuel Crisis and the Government's Solution

Amid global fuel shortages, Myanmar is actively striving to refine its extracted crude oil domestically. As part of this initiative, new oil refineries are slated for construction, and the Thanbayakan oil refinery, originally built in 1982, will undergo upgrades to operate at full capacity.

Furthermore, hand-dug oil well operations have been suspended to promote standard domestic production and mitigate environmental impacts. In their place, 36 local business organizations have received authorization to drill standard wells. With these operations commencing shortly, domestic crude oil production is projected to see significant improvement.

At the ceremony, the NPCM Chairman pledged to expedite efforts to achieve positive results in alignment with the contract's commitments. The Ministry of Electricity and Energy also announced that international tenders are being actively called and evaluated to prevent any financial or strategic loss to the State.

Situated in Minbu Township, Minbu District, Magway Region, the Htaukshabin oil field was discovered around 1969, with the Kanni field developed shortly after in the 1970s. Following peak production around 1985, crude oil output from the site has experienced a steady decline.

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