Wednesday, January 26, 2011

Goldpetrol drills for oil in old Burmese oilfields

Wednesday, 26 January 2011 20:52 Ko Wild

Chiang Mai (Mizzima) – The Goldpetrol Joint Operation Company is producing crude oil from old oil wells in the Yenanchaung and Chauk oilfields in Magwe Division in middle Burma.

Singapore-based Interra Resources Limited which owns 60 percent of Goldpetrol’s shares posted the information on its website on January 17.

Among these old oil wells, Well No. 2459 in the Yenanchaug oil field, which had been drilled down to 900 feet in 1931 and closed during WWII, and the Chauk-950 oil well, which was first drilled in Chauk Township in 1956 and closed in 1982, are included in the project. The Chauk-950 well could produce more than 206,000 barrels of crude oil in the past.

Since last year, Goldpetrol has re-drilled the old oil wells, and they now produce up to 90 barrels per day, according to Interra Resources.

The Myanmar Oil and Gas Enterprise (MOGE) under the Myanmar Energy Ministry and Goldpetrol signed a 20-year contract granting exploration rights which will end in 2017. MOGE controls the exploration and production of oil and gas in Burma.

Goldpetrol hired Paris-based Schlumberger Logelco Inc to conduct a survey for further field development opportunities in eight locations having potential of improved petroleum recovery. The company has conducted studies which say that the area has a potential of producing 1,715-3,639 million barrels, Interra Resources said.

Shwe Gas campaign has released a report which says that Burma has received a US$ 2.5 billion investment in the oil and gas sectors since 1988. Shwe Gas campaign studies and exposes human rights violations related to oil and gas exploration and production in Rakhine State.

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