Thursday, 14 February 2013 16:17 Saw Zin Nyi
The Energy Ministry announced on February 13 that it had revoked the license of Shweyathi Petroleum Co that permits it to produce oil at Padaukpin Village in Magwe Region.
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| Padaukpin oil blocks owned by the Shweyathi Petroleum Co in Thayat Township, Magwe Division. (Photo: Saw Zin Nyi / Mizzima) |
The announcement has resulted in a backlash from the company.
“We conducted our business in accordance with the instructions given by the district and township fire departments,” said an official at the oil company. “The decision is one-sided.”
The Energy Ministry said that the company, which is owned by Kyaw Htay, did not follow instructions given for fire-safety measures, resulting in the Shweyathi Petroleum Co’s license being revoked as from February 7, 2013.
“Fire often breaks out at every oil field,” said the company official, who insisted that they had followed standard instructions and regulations.
Residents in Thayat Township said that there were 13 fires at the Padaukpin oil blocks owned by the Shweyathi Petroleum Co from June 2012 to February 2013.
The company leases oil blocks in Padaukpin Village to local businesspeople and has permitted the leaseholders to drill for oil in return for selling the oil back to the company at a heavily discounted price.
Myo Than Tun, a leaseholder said, “Fire broke out due to weaknesses in the company’s system of collecting oil barrels.”
According to workers at the oil blocks, the copper wires that are used to draw crude oil from the wells often come in contact with each other, producing sparks and fire.
The Energy Ministry was unavailable for further comment when contacted by Mizzima.
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