Gas Discovery in Burma

The Myanmar Oil and Gas Enterprise (MOGE) started drilling a test well on February 12 on land owned by a local farmer, Than Tun, near Laydaungkan Village, said a local farmer.

“The exploration group came into the bean fields to conduct seismic surveys in search of gas,” he said. He said drilling tests proved successful on February 14.

Another farmer from Laydaungkan Village said, “They destroyed the crops planted by Than Tun without compensation.” Than Tun was hospitalized because of stress associated with the drilling, he said.

MOGE, which operates under the Ministry of Energy, would not respond to queries from The Irrawaddy about the reported gas discovery. MOGE is the government’s exploration and production department for oil and gas in Burma.

At least 21 multinational oil and gas companies from China, Singapore, South Korea, India, Russia, Malaysia, Thailand, the United States, France, Japan and Australia have long-term contracts with MOGE. The Burmese military government began to allow foreign investments in energy production in 1988.

The military government has signed gas and oil contracts with multinationals such as Total of France; CNOOC and SNPC of China; Daewoo of South Korea; onGC of India; Danford Equities of Australia and PTTEP of Thailand.

According to the Rangoon-based Myanmar Times weekly journal, the Burmese energy sector, including hydropower, oil and gas, comprises 65 percent of Foreign Direct Investment, which is made up of 12 economic sectors that include power, energy, mining, manufacturing, hotels and tourism, livestock and fisheries, transportation and telecommunications.

Author: Ksenia Kochneva