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
