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Myanmar Energy Report[1]

Myanmar Energy Report[1]

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Published by: arakanoilwatch on May 09, 2012
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09/15/2014

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UNION OF MYANMAR
MINISTRY OF ENERGY
Country Report for Myanmar
Presented by:U Kyaw NyeinManaging DirectorMyanma Oil and Gas Enterprise
 
-
1
-
COUNTRY REPORT FOR MYANMAR 
1. Introduction
Myanmar has a total area of 676,577 km
2
sharingborders with –
Ø
Bangladesh and India on the north-west,
Ø
China on the north-east,
Ø
Laos on the east, and
Ø
Thailand on the south-east.It has a coastal strip of 2832km facing to the Bay of Bengal and Andaman Sea.The population is about 50 million people with anaverage growth rate of 1.82% per annum.
2. Brief History of Myanmar Petroleum Industry
Ø
Myanmar petroleum industry evolved in the 10
th
century in Yenangyaung area of central Myanmar during the Pagan Dynasty. Initially oil was extracted and used fromthe seepage and then from shallow hand dug wells.
Ø
The first Myanmar crude was exported in 1853.
Ø
In 1871, the first foreign oil company, ROC (Rangoon Oil Company) was establishedand carried out the refining and marketing.
Ø
In 1886, Burmah Oil Company (BOC) which was a British company, was establishedin
 Yenangyaung
. The first
Machine-Drilled Well 
was completed in 1887 and the first
Rotary-Drilled Well 
was introduced in 1922.
Ø
Another giant oil field "
Chauk
" was discovered in 1902.
Ø
Apart from BOC, some other 30 smaller oil companies were active before WWII.
Ø
The winds of WWII changed the atmosphere of the Myanmar Petroleum Industryabruptly. The oil wells, equipment and refineries were destroyed in 1942.
Ø
After WWII, the Petroleum Industry was still under the control of BOC till 1963.
Ø
The Myanmar national oil company was established in 1963 after the Myanmar Government took over the entire petroleum industry from BOC. Since then, thePetroleum Industry has been entirely operated by Myanmar nationals only.
 
 
-
2
-
3.Energy Policy
The Ministry of Energy of the Union of Myanmar has been meticulously pursuingthe following energy policy, in order to increase the energy production level :
Ø
To maintain the status of energy independence,
Ø
To save nonrenewable energy for future energy sufficiency of the nation,
Ø
To promote efficient utilization of energy and impress on energy conservation,
Ø
To prevent deforestation caused by excessive use of fuel wood and charcoal.Under MOE, there are three state economic enterprises and one department.
v
Energy Planning Department
(EPD)
: Coordinate / negotiate thedevelopment program inenergy sector.
v
Myanma Oil and Gas Enterprise
(MOGE)
:Oil & gas exploration /production / distribution.
v
Myanma Petrochemical Enterprise
(MPE)
:Refineries/ Fertilizer Plants/LPG Plant/ Methanol Plant/etc
v
Myanma Petroleum Products Enterprise
(MPPE)
:Marketing / distributionof petroleum products.
4. Upstream Activities
Myanma Oil and Gas Enterprise (MOGE), working under the Ministry of Energy(MOE), was established in 1963 after transactions between the Burma Oil Co.(1954)Ltdand the Myanmar Government. Previously, upstream and downstream activities were runas one entity. Starting from 1970, MOGE was responsible only for upstream activities.Myanma Oil and Gas Enterprise (MOGE) is a 100 % State owned Enterprise andhas
the following 
basic 
responsibilities:-
v
To explore and produce oil and gas by using its own resources,
v
To supply the domestic natural gas by constructing its own gas pipelines,
v
To supply the Compressed Natural Gas (CNG) as a substitute fuel instead of gasoline for vehicles,
v
 
To participate in and oversee the production Sharing Contracts (PSCs) incooperation with foreign oil companies.
4 Organization
MOGE is headed by the Managing Director, under whose direction, the Directors,Departmental Heads and Oil and Gas Field General Managers exercise control in their respective departments and fields. Currently, MOGE has about 13,000 employeesincluding 850 management staff.

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