August 6, 2025,Nay Pyi Taw- Two private companies will begin exploration for oil and natural gas in three onshore blocks in the Pyae (Pyay) Sedimentary Basin region.

The two private companies, HNA Myanmar Oil & Gas Ltd and Future Engineering & Gold, Mining Co., Ltd, signed production sharing contracts with the Myanma Oil and Gas Enterprise, which is under the Ministry of Energy. The signing ceremony took place today, August 6, at the Ministry of Energy in Nay Pyi Taw.

According to a press release from the Ministry of Energy, HNA Myanmar Oil & Gas Ltd will carry out increased oil extraction operations in onshore blocks IOR-4 (Pyae region) Area-1 and IOR-6 (Myanaung region) Area-3. Meanwhile, Future Engineering & Gold, Mining Co., Ltd. will perform similar work in block IOR-7 (Shwepyithar region) Area-2.

Union Minister for Energy U Ko Ko Lwin, who presided over the contract signing ceremony, stated, "The Pyae, Myanaung, and Shwepyithar oil fields, which are located in the larger Pyae Sedimentary Basin, have a great history and good potential. We believe that if we can carry out exploration, evaluation, and drilling using modern technologies and equipment, it will be very beneficial for the state and will be successful."

Officials from the private companies and senior officials from the Ministry of Energy also attended the signing ceremony.

The Ministry of Energy has been allowing Local entrepreneurs to operate 10 onshore blocks in mature oil fields under a production sharing contract system. According to the Ministry's press release, the first block approved in October 2024 is already producing natural gas, which is being used to provide electricity to that region.

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