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Myanmar to privatise oil refineries
Publication Date : 25-07-2012
The Myanmar government will privatise state-owned oil refineries, according to Directorate of Energy under Ministry of Energy.
Oil refinery in Thanlyin (Syrian) Township will be the first facility under this denationalisation scheme.
“Oil refineries are very old. Although the exploration of crude oil and natural gas has increased, refining processes are declining. Oil refinery in Thanlyin will be privatised first,” an official from the Directorate of Energy said.
Three oil refineries in Myanmar are Thanlyin oil refinery, Mann Thanpayarkan oil refinery and Chauk oil refinery, which can produce 7,500 barrels of oil and 11,000 barrels of light oil per day. The privatisation of Thanlyin oil refinery has been announced this year.
Although the government plans to hand over this oil facility as a joint-venture to foreign and local business firms, local entrepreneurs may not have enough experience, capital or technology to manage an oil refinery, the official said.
Myanmar has targeted to extract 7,156.6 thousand crude oil in 2012-2013 fiscal year— 3,435.6 thousand from inland blocks and 3,721 thousand from offshore blocks.
It is also expected that more crude oil could be extracted from offshore block of Thanintharyi, and more oil blocks will be developed in Magwe, Bago and Ayeyawady regions in 2012-2013 fiscal year.
Moreover, Ministry of Energy is cooperating with the Asean Council on Petroleum (ASCOPE) to share technologies and equipment for oil and gas exploration, production, refining and commercial sectors.