CONTENTS

1. Introduction to Oil & Gas Industry 4. Offshore Drilling Rigs & Production
2. Myanmar Oil & Gas Industry Platforms
2.1 Historical Main Oil Field 4.1 Offshore Jack-up Drilling Rig
2.2 Historical Development of Drilling & 4.2 Offshore Production Platform
Production 5. Services in Oil & Gas Industry
Hand-Dug Wells
6. Current Oil & Gas Activities in
Rotary Drilling System Myanmar
2.3 Myanmar Oil & Gas Industry after 1963 6.1 Onshore Activities
3. How Drilling Works 6.2 Offshore Activities
3.1 How Oil is formed 7. Out Look for Myanmar Oil & Gas
3.2 Finding Oil Industry
3.3 Preparing to Drill
3.4 Components of a Drilling Rig
3.5 Drilling Operation
3.6 Extracting the Oil
3.7 Transporting of Oil & Gas
1. The Introduction to Oil & Gas Industry 1/3

Oil & Gas Industry (Petroleum Industry) is involved in the

processes of exploration, extraction, refining, transporting (often
with oil tankers and pipelines), and marketing petroleum products.

Petroleum in common usage includes both crude oil and natural

gas.

The industry is usually divided into three major

components: upstream, midstream and downstream. Midstream
operations are usually included in the downstream category.

Both crude oil and natural gas are predominantly a mixture of

hydrocarbons and other organic compounds.
1. The Introduction to Oil & Gas Industry 2/3

The upstream sector includes;

Searching for potential underground or underwater oil and gas

fields,

Drilling of exploratory wells, and

Recovery of the crude oil and/or raw natural gas to the

surface.

The upstream oil sector is also known as the exploration and

production (E&P) sector.
1. The Introduction to Oil & Gas Industry 3/3

The midstream sector includes;

Transporting of crude oil, natural gas, natural gas liquids
(LNGs, mainly ethane, propane and butane) and sulphur
To store & market

The downstream sector is used to refer to;

The refining of crude oil

The selling and distribution of natural gas and products
derived from crude oil
( such as liquified petroleum gas (LPG), gasoline or petrol, jet fuel,
diesel oil, other fuel oils, asphalt and petroleum coke )
2. Myanmar Oil & Gas Industry 1/4

Myanmar is a resource rich country and

the largest country in the mainland of
South East Asia.With over 676,577 square
Kilometres, Myanmar shares borders with
 Bangladesh & Indian the north west.
 China on the north east.
 Loas & Thailand on the south east.

It also has a coastal strip of 2832 km

facing to the Bay of Bengal and Indonesia.
Myammar's hydrocarbon provinces are
located both in onshore and offshore.
2. Myanmar Oil & Gas Industry 2/4

Prtroleum Industry in Myanmar evolved from Yenangyaung area of

central Myanmar since around the 10th century of early Bagan
period.
There is a legend that one of the early Myanmar Kings brought
captives from the Arakan Coast to Yenangyaung. These men
developed the industry and became the first Twinzayos, the
hereditary of oil-well owners.
The 13th century crude oil were extracted from shallow hand-dug
wells in Yenangyaung.
After the British colonialist visited to Yenanggyaung around
1797,they began having interest in the traditional extraction way
of petroleum . The first Machine -Drilled- Well in Yenangyaung was
completed in1887.
The first Myanmar crude oil was exported in 1853. The crude oil
from Myanmar was also imported to England two years before
1859.
2. Myanmar Oil & Gas Industry 3/4

Prtroleum Industry in Myanmar evolved from Yenangyaung area of

central Myanmar since around the 10th century of early Bagan
period.

After Drake's well in Pennsylvania struck oil, the development of the

petroleum industry in United States provided a more convenient
source of supply for England and the demand from Myanmar was
soon disappeared.

In 1871 the first foreign oil company, ROC (Rangoon Oil Company)
was established & carried out the refining & marketing.

In 1886, Burma Oil Company (BOC), a British company, was

established in Yenangyaung.
2 Myanmar Oil & Gas Industry 4/4

The first Machine-Drilled Well was completed in 1887 and the first
Rotary-Drilled was introduced in 1922.

Another giant oil field "Chauk" was discovered in 1902. Some other
30 small oil companies were active before World War II.

The national oil company was established on 1st Jan: 1963 to act as
the sole operator of petroleum industry of Myanmar.

The name was changed in accordance with its structure and its
responsibilities to People's Oil Industry (1964),Myanmar Oil
Corporation(1970) and Myanmar Oil and Gas Enterprise (1989).

Myanmar Oil and Gas Enterprise (MOGE) is trying to explore and

produce petroleum by its own effort and has entered into PSC
contacts with multinational oil companies since 1989 to introduce
modern technology and foreign investment.
2.1 Historical Main Oil Fields 1/5
The YENANGYAUNG FIELD

• It was situated on about 400 feet above sea-level on the east bank of
the Irrawaddy 360 miles north from Yangon. It was the first oil field in
which plectroleum was obtained in Myanmar.

• The Twinzayos, the hereditary owners of the right to work the oil.
Until 1850 selling a well to anyone who was not a Twinzayos was not
allowed. Later the rule was relaxed and the practice of selling or
leasing became fairly general.

• King Mindon Min acquired 120 sites by marriage and 17 more under
mortgage. These 137 sites became the property of the British Crown
after the third Burmese-British war and had been leased to BOC.

• The peak was reached in 1918 at 16000 BOPD (Barrel of Oil per Day).
About 4000 wells had been drilled & yielded oil from depths varying
from a few hundred to five thousand feet. The deepest well was over
seven thousand feet.
2.3 Historical Main Oil Fields 2/5
The SINGU FIELD (Chauk Field)

• It lies at the east bank of the Irrawaddy about 30 miles north of

Yenangyaung.
• It is the first discovery of oil by BOC & The peak oil production of
Chauk field occurred in 1941 at 12,800 BOPD.
• Over a thousand wells had been drilled from about 1400 feet
down to nearly 5000 feet.

The LANYWA FIELD

• It lies on the west of bank of the Irrawaddy & it was the

northernmost continuation of Singu field. It's reclamation had
been done by the Indo-Burma Petroleum Company.
• The field first became important in 1928 and it's production
reached about one-sixth of that of Singu Field. More than a
thousand wells had been drilled.
 2.1 Historical Main Oil Fields 3/5

Fig - 2 . Part of the earlier Yenangyaung Oil Field

Fig - 3 . Reclamation at Singu & Lanywa

2.1 Historical Main Oil Fields 4/5
The MINBU FIELD ( MANN Field)
• It lies at on the west bark of the Irrawaddy, about twenty to thirty
miles south of Yenangyuang. It includes the well-known mud
volcaroes of Minbu.
• At that time well were yielding small productions of oil and the
field never became great important.
• But MOGE found new oil fields in 1970 the field became the most
productive oil field at 1984-85.

The INDAW FIELD

• It lies in upper Chindwin District & on the east of the Irrawaddy

about 175 miles north of Main oil fields. It was located in densely-
forested area.
• It was discovered & developed by Indo-Burma Petroleum Company
and had yield a small production about 20 years.
2.1 Historical Main Oil Fields 5/5

The YENANMA FIELD

• It lies in Thayetmyo District to the west of the Irrawaddy about 50
miles south of Yenangyaung.

The PYAE GAS-FIELD

• It lies in Thanyetmyo District to east of the Irrawaddy.

• A large quantities of natural gas under high pressure were found
and developed by the Indo-Burma Petroleum Company.
• The natural gas was being used by an associated company for fuel
in cement factory.
2.2 Historical Development of Drilling & Production 1/6

Perhaps there is no oil-producing area in the world which efforts so

complete a picture of development from the primitive to the modern
as Myanmar.

Petroleum was first won by the hand-dug wells, then by cable-tool

drilling by which modern industry was built up.

The rotary drilling system was established in 1922 & the complete
electrification of main fields fall into an orderly sequence of progress.
2.2 Historical Development of Drilling & Production 2/6

HAND-DUG WELLS

A number of hand-dug wells could still be seen in operation by the

Burmese until the oil fields fell into the hand of the Japanese.

At first quite shallow, later the depths of 400 feet had been reached.

Armed with a shovel and crowbar the driller was lowered into &
raised from the well by a gang, hauling on a rope up and down an
inclined plane.

The adoption of well-made gas-helmets supplied with air by pump &

hose enabled the driller to work at depth for long spell.

The oil gradually drained into the bottom of the well after the digging
had been completed. The oil was periodically collected in bucket or
old Kerosine tin.
2.2 Historical Development of Drilling & Production 3/6

Earlier Myanmar hand-dug wells

2.2 Historical Development of Drilling & Production 4/6
/6

One of the old hand-dug wells at Yenangyaung

2.2 Historical Development of Drilling & Production 5/6

CABLE-TOOL DRILLING SYSTEM

• The rock was pounded & broken up by repeated blows from heavy
drilling tools, and the spoil (mixed with water) was bailed out at
intervals.

• To prevent collapse, the hole is lined with steel pipe (or) casing
inserted joint by joint to follow the tools. These strings of casing
was limited by friction to a few hundred feet.

• When further progress was impossible with one string, another

string of smaller diameter was inserted inside it.

• A well of 3000 feet deep might required about five different sizes
of casings, one within another.
2.2 Historical Development of Drilling & Production 6/6

ROTARY DRILLING SYSTEM

• It was well established in the united states by about 1920. It was first tried
systematically in Myammar about two years later and had largely superseded cable-
tool drilling by 1926.

• In this method, a drilling bit is secured to the bottom of a string of drill-pipes and
rotated by surface machinery. The drilling bits cuts & grinds its way through the rock
instead of pounding.

• A stream of fluid (drilling mud), pumped down through the drill-pipe, cool the drilling
bit and returning upward outside the pipe carries the rock cutting to the surface.
• the rotary method is theoretically continuous. Stoppages are necessary from time to
time in order to renew the worn drill bit.

• In its upward passage, the stream of drilling mud builds up against the wall of the hole
aided by the hydrostatic pressure of the liquid column.

• It supports the hole against caving & drilling can be continued to great depth before
the insertion of casings. Successful drilling operation depends greatly on the quantity
of drilling mud.
2.3 Myanmar Oil & Gas Industry After 1963 6/6

Myanmar national oil company was established in 1963 after the

Myanmar Government took over the entire petroleum industry
from BOC.
Now under Ministry of Energy (MOE), there are three state
economic enterprise and one department.

Energy Planning Department : Coordinate/ negotiate the development

(EPD) program in energy sector.

Myanma Oil and Gas Enterprise : Oil & gas exploration / production /
(MOGE) distribution (Upstream activities)

Myanma Petrochemical Enterprise : Refineries / Fertilizer Plants / LPG

(MPE) Plant / Methanol Plant / etc.

Myanma Petroleum Products Enterprise : Marketing / distribution / of

(MPPE) petroleum products.
2.3 Myanmar Oil & Gas Industry After 1963 7/6

Prior to 1963, oil was extracted mainly from Chauk and

Yenangyaung Oil Fields in the Central Myanmar Basin with an
annual production of 3.99 million barrels.

After the establishment of the national oil enterprise, new oil and
gas fields were discovered increasing the yearly production, which
peaked at 11.20 million barrels in 1984-85.

Currently MOGE is producing about 20,000 bopd and 1300 mmcfd

gas from onshore oil and gas fields. Oil is sent to the nearest
refineries by barges and pipelines.

The produced gas is transmitted to gas turbines, fertilizer plants,

methanol plant, LPG plant, cement factories,CNG stations and
other industries by pipelines.

Myanmar is exporting natural gas 1100 mmcfd to Thailand from

Yadana and Yetagon Offshore Platform.
 2.3 Myanmar Oil & Gas Industry After 1963 8/6
Yadana Offshore production Platform

Yetagun Offshore production Platform