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Background History
Prtroleum Industry in Myanmar evolved
from Yenangyaung area of central Myanmar since around the 10th century of
early Bagan period .By the 13th century crude oil were extracted from making
shallow hand dug wells in Yenangyaung. After the British colonialist visit 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 national oil company was
established on 1st Jan: 1963 to act as the sole operator of petroleum industry
of Myanmar and 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).The Ministry of Mines oversaw
the petroleum downstream operations up to 1st April 1975 and the upstream
operations up to 29th July 1977.The responsibilities were overtaken by the
Ministry of Industry(2) on the respective dates. On 11th April 1985 the Ministry
of Energy was formed to oversee the upstream and downstream operations together
with the electricity generation and distribution. On 15th November 1997 the
Ministry of Electric Power was established as a separate entity.
Set up of Ministry of Energy
The Ministry of Energy was formed in April 1985, and it comprise of the Minister's office, the Energy Planning Department (EPD), the Myanmar Oil and Gas Enterprise (MOGE), the Myanmar Petrochemical Enterprise (MPE) and the Myanmar Petroleum Products Enterprise (MPPE).
The responsibilities of the Ministry as a whole is to carry out the exploration and production of oil and gas, refining, distribution and transportation of petroleum products and manufacturing petrochemicals.
Energy Policy
- To maintain the status of energy
independence,
- To save nonrenewable energy for future
energy sufficiency of the nation.
- To promote efficient utilization of
energy and on energy conservation and
- To prevent deforestation caused by excessive use of fuel wood and charcoal.
Functions and Responsibilities
Ministry's function on and responsibilities, respectively sect orwise are as follow:-
Ministries office
Administration task
Address
Phone
Myanmar Oil and Gas Enterprise
All the upstream operations are entrusted to Myanmar
Oil and Gas Enterprise (MOGE): Not only to strive for self-sufficiency in crude oil and natural gas but also to export the excess.
In detail, the following works are borne by MOGE in a self-contained set-up and infrastructure.
- Geological and geophysical exploration
survey and exploration laboratories.
- Construction and preparation of
exploration drilling sites.
- Oil and gas drilling and well completion
works.
- Testing and production of oil and gas and
construction of production facilities.
- Field development of oil and
gas discoveries.
- Laying andoperative crude and gas pipe
lines to user plants including loosen compression for gas
delivery.
- Research and development of oil field
equipment and spares.
- Human Resources Development.
The above functions were further expanded as follow as onshore and offshore blocks were bidded for exploration and production of oil and by foreign oil Company.
Management, coordination and Co-operation of contracts with foreign oil companies and their sub-contractors
for Onshore Production Sharing Contracts/ Reactivation of Suspended Oil Field Contracts/Improved Petroleum Recovery Contracts for oil field etc.
management, coordination and co-operation of offshore exploration and production contracts with foreign oil
companies and their sub-contractors. Organization and Set Up. (MOGE)
MOGE is head by a Managing Director who chairs the
following management and technical bodies:
(1) Board of Directors
(2) Technical Planning
Committee (onshore)
(3) Technical Planning
Committee (offshore)
Progress Milestone
When the Industry was taken over and operated by
Myanmar nationals starting from 1st January 1963,there was no geophysical survey
parties and there were only six drilling outfits. the national oil company,
however elevating the confidence of the State and its investment, the number of
drilling units operated by MOGE increased to 45 nos. To highlight the work
progress it should be recorded that the country's annual crude oil production
recorded 11 million US bbl in 1984 and in some 37 years of the national oil
company's life. It has contributed some 111 million barrels of oil from the
fields discovered under its operation ship. Mann Oil Field is ranked as a giant
oil field of the worlds as it cumulative production well exceeded100 million bbl
mark.
Partnership with Foreign Oil Companies
The Foreign Investment Law permitted the
Ministry of Energy to undergo sincere and intensive negotiations with a number
of international oil companies. The first production contract was signed with
Yukong Myanmar Branch (Korea) on 3rd October 1989.
The current partnership, Myanmar Shell B.V led
discoveries gas onshore (Apyauk) and MOGE, Premier, Nippon Oil PTTEP 1 and
Petronas discovered significant gas offshore ( Yetagun).
The gas field, discovered by Myanmar B.V in 1991
lies close to Yangon,45 miles to the north. The gas flow rate of Apyauk wells
are quite high,over 10 MMCFD in some wells and it was supplied to Yangon
starting from 1-5-92.An expeditious development drilling launched its production
to over 130 million cu ft/day, the highest capacity even on land in Myanma. As of
November 2000,the field is producing about 78 MMCFD of gas and 20,barrels of oil
per day (bopd) of condensate.
Kyaukkwet/Letpando
Santa Fe Myanmar Ltd carried out seismic surveys
in Block RSF covering Kyaukkwet-Letpando area. Based on the seismic results
acquired during the operator ship of Santa Fe, MOGE drilled Kyaukkwet well 1,in
Myaing Township, Pakkoku District in Magwe Division on 27th May 1995 and
discovered oil and gas accumulation in that area. Upon review of seismic data, shallow prospects were discovered in Letpando area (Pauk Township) and the
subsequent drilling led to appreciable production from the younger and shallower
formation of Shwezattaw at about 3000ft.
Nyaungdon
The Naungdon oil and gas field was discovered in
1999.It is close to Nyaungdon, Ayeyarwaddy Division and is 32 miles away from
Yangon, After acquiring gravity and seismic survey, Naungdon well N0.1 was
located about 3 mile from Sarmalauk village. The well was spudded in on
27-1-1999 using MOGE deep drilling rig Ermseo and a dept of 10650 ft. Upon
testing the well produced 69 bopd of condensate and 4.24 MMCFD of gas. The
Naungdon oil and gas field is producing 2.06 bopd condensate and 18 MMCFD gas so
far.
Offshore Gas Fields Development
Yadana
The initial gas-in-place have been certified to be around 7 trillion cu.ft of gas
base on all the drilling/testing results of verification wells drilled by Total
Myanmar Exploration and Production (TMEP). A gas sale agreement was reached
between MOGE and TEMP and PTT (Petroleum Authority of Thailand) on 2-2-1995. As
much as 525 MMCFD are to be delivered to Thailand and 125 MMCFD are assigned to
domestic use A 36 gas for pipeline, 39 miles onshore and 216 inches offshore was
connected to Myanmar_ Thailand border. Myanmar’s yearly income from the gas
sale in around 105 million US$. This gas project is to last for 30 years.
Yetagun
Yetagun well 1 was spudded in on 9-9-92 in Moattama block M_13. The well discovered high
caliber sound stone reservoirs at depth 6500-7000ft and tested 23.5 MMCFD gas
and 609-loped condensate. This gas field in located about 250 miles south of
Yangon and some 115 miles to the west of Myeik. A gas sale agreement was reached
on 13.3.97 between the following partners:
- MOGE (Myanmar)
- Premier (Britain)
- Nippon Oil (Japan)
- PTTEPI (Thailand)
- Petronas(Malaysia)
A 24" pipeline 43 miles onshore and 126 miles offshore was connected to
Thailand-Myanmar border. The gas will be associated with condensate producing
6000 ft/day. Myanmar will earn yearly about 167 million US$ from gas sale and 27
million US$ from condensate sales. The project will last for 25 years. The field
will supply gas to Thailand at around 120 MMCFD.
ActiveForeign Oil companies exploring on land Westburne Oil Limited
Working
in RSF-8 block in Mindegyi area (Magwe Division) West burners Dahatpin shallow
well, are producing 15.20 bopd and Yenaama old wells are giving about 10 bopd.
Exspan
Myanmar
The
Indonesian Oil Company in prospecting in RSF.5 Ondwe (Magwe Division) and MOGE-3
(padaukpin-Monatkon).
New
exploration frontiers
Higher
authorities and the Ministry of Energy gave guidance to MOGE to open up new oil
and gas exploration frontiers, thereby, the first frontier area chosen in
onshore Block A, located at Hukaung Basin embracing the plain of Tanaing and
environs.
Tanaing
Tanaing
well (Kachin State), sited on the Tanaing Autialine was spudded in using
National 55 Sr.3 drilling outfit on 16-4-2000. The seismic surveys were
continued in 1999 and 2000 to carry out systematic search for prospective
locations. The Tanaing structure was delineated in the 1999 surveys and is up
for exploration drilling in fair weather season for year 2001 using a deep
drilling rig, D-3 type 2 series1.
Yebawni
The
Yebawni prospect (Htamanthi Tsp, Sagaing Division) will be drilled in the fair
weather season of year 2001 to a depth of 9000ft using a deep drilling outfit of
MOGE, USS oil well.
Myanma
Petrochemical Enterprise
Myanma
Petrochemical Enterprise under the Ministry of Energy is the sole state owned
enterprise for the production of petroleum and petrochemical products from crude
oil and natural gas in the country.
Myanma
Petrochemical Enterprise is assigned for the following:
(a)
Refining of petrochemical products from crude oil and natural gas.
(b)
Production of petrochemical products from crude oil and natural gas.
(c)
Production of urea fertilizer from natural gas.
(d)
Export of petroleum and of petrochemical products.
Refining Sector
Crude oil is currently refined at once refinery in lower Myanmar and two refineries in
central Myanmar, namely:
- No. 1 oil Refinery (Thanlyin)
- No. 2 oil Refinery (Chauk)
- Petrochemical Complex (Thanbaykan)
No.1 Oil Refinery (Thanlyin)
Location- Thanlyin Township, Yangon Division
Year built - COD(A)1957(6,000 BPSD)
Capacity- 26,000 BPSD of Crude oil
COD(B)1963(14,000 BPSD)
COD(C)1980(6,000 BPSD)
Process Plants - Crude Oil Distillation Unit A,B & C SBP Plant, Delayed Coker Plant,
Lube Blending Plant LPG Terminal, Candle Factory, Drum
Manufacturing Plant, GMW Power Plant.
No.2 Oil Refinery (Chauk)
Location- Chauk Township, Magway Division
Year built - 1954
Capacity
- 6,000 BPSD of Crude oil
Process Plant
Wax Extraction Plant,Candle Factory
Petrochemical
Complex (Thanbaykan)
Location
- Min Hla Township, Magway Division
Year
built - 1982
Capacity
- 25,000 BPSD of Crude oil
Process
Plants - Topper, Reformer, Delayed Coker, Naphtha HDS, Kerosene Smoke Point
Improving & LPG Recovery Units.
Fertilizer
Production sector
Myanmar
Petrochemical Enterprise in endeavoring to fulfill the requirement of Urea
fertilizer, vital to the development of the agricultural sector in the country.
The 3 fertilizer plants, operating by natural gas were produced the urea
fertilizer and its amount were 1,123,207 MT from 1988-89 to 1999-2000 financial
year.
No.
1 Fertilizer Factory (Sale)
Location
- Chauk Township, Magway Division
Year
built - 1970
Capacity
- Unit A 205 Metric Tons/Day
Unit
B 260 Metric Tons/Day
Process
Plants - Ammonia Plant, Urea Plant
No.
2 Fertilizer Factory (Kyun Chaung)
Location
- Pakoku Township, Magway Division
Year
built - 1971
Capacity
- 207 Metric Tons/Day
Process
Plants - Ammonia Plant, Urea Plant
No.
3 Fertilizer Factory (Kyaw Zwa)
Location
- Aung Lan Township, Magway Division
Year
built - 1985
Capacity
- 600 Metric Tons/Day
Process
Plants - Ammonia Plant, Urea Plant
Methanol
Plant
Location
- Kyan Gin Township, Ayeyawaddy Division
Year
built - 1986
Capacity
- 450 Metric Tons/Day
Process
Plants - Reformer Methanol Synthesis Unit
Product
- Methanol (AA Grade)
| Liquified Petroleum Gas (LPG) Extraction Plant |
Location
- Minbu Township, Magway Division
Year
built - 1986
Capacity
- 24 MMSCF /Day of Associated Gas
Process
Plants - C3, C4 Extraction Unit, Naphtha Recovery Unit
Product
- Liquified Propane and Butane, Naphtha
Crude
Oil and Petroleum products transportation Sector
The
Crude and Petroleum Products Movement Department (CPMD) is undertaking the
transportation of crude oil, petroleum & petrochemical produces with 6
costal tankers 66 river tugs, 2 methanol barges, 2 LPG barges and 91 oil barges.
Myanmar
Petroleum Products Enterprise
Myanmar
Petroleum Products Enterprise in a State owned organization, vested with
authority and responsibility to conduct the marketing of the petroleum products
in the Union of Myanmar. The Managing Director leads the Marketing Enterprise
and under him, the Head Quarters in organized into five main directorates, namely
the planning, the operations, the sales, the finance and the general
administration with their respective duties and functions.
Myanmar
Petroleum Industry and Trade is one of the oldest in the world, which in nearly
1,100 years from the first discovery of oil in Ad 906.
Ministry
of Energy-
Address
- 23, corner of Pyay Road & Min Ye Kyaw Swar Road, Lanmadaw Township
Phone
- 221060/221116
Myanma
Oil and Gas Enterprise -
Address
- 74/80, Min Ye Kyaw Swar Road, Lanmadaw Township
Phone
- 222874/222877
Energy
Planning Department-
Address
- 23, corner of Pyay Road & Min Ye Kyaw Swar Road, Lanmadaw Township
Phone
- 211330
Myanma
Petrochemical Enterprise-
Address
- 23, corner of Pyay Road & Min Ye Kyaw Swar Road, Lanmadaw Township
Phone
- 222822/222813/222814
Myanma
Petroleum Products Enterprise-
Address
- 74/80, Min Ye Kyaw Swar Road, Lanmadaw Township
Phone
- 221098
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