MOGE, domestic firms partner for standard oil production

THE signing ceremony for the operating agree­ments between the Min­istry of Energy’s Myanma Oil and Gas Enterprise (MOGE) and domestic companies for the drilling and production of crude oil from standard wells was held on 30 June.

 

The ceremony was attended by Union Min­ister U Ko Ko Lwin, ministry officials, and representatives of the companies granted op­erating rights.

 

Union Minister U Ko Ko Lwin said that hand-dug oil well drilling op­erations previously per­mitted have already been suspended, and that the introduction of the new system is intended to minimize the waste and loss of state-owned oil re­sources while ensuring their sustainable extrac­tion and utilization. He added that applications for oil drilling and pro­duction will be carefully reviewed and approved to minimize environmental impacts.

 

The project aims to help meet domestic oil de­mand while enabling local entrepreneurs to invest their capital productively in the State’s production sector. Companies apply­ing to drill and produce crude oil from the stand­ard wells will therefore be systematically evaluated, and eligible applicants will continue to be grant­ed operating rights.

 

“The crude oil pro­duced from these opera­tions will be systematical­ly refined and supplied to state-owned oil refineries for processing. This will make a significant con­tribution to meeting the country’s energy needs,” a ministry official said.

 

During the ceremo­ny, the Managing Director of the MOGE briefed the participating companies on the rules and regula­tions governing the oper­ations, after which the op­erating agreements were signed and exchanged between MOGE and the respective companies. — TWA/TH