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.
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.
source: Mizzima
http://www.mizzima.com/business/8907-energy-ministry-revokes-myanmar-oil-companys-license.html
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