Myanmar’s Ministry of Electricity and Energy has signed an enhanced oil recovery agreement with North Petro-Chem Corporation (Myanmar) Limited to increase crude production at the Htaukshabin–Kanni oil field.

At the signing ceremony held on April 11 in Nay Pyi Taw, officials said the project is expected to deliver immediate benefits by raising crude output, which could help expand domestic fuel production.

The Union Minister noted that the field, like many in Myanmar, is aging—having operated for around 50 years—and requires modern technology, proper equipment, skilled manpower, and investment to improve yields. The selected company was chosen based on its ability to meet these requirements.

To further boost domestic supply, the government has also approved 36 local companies to develop standard oil wells, replacing traditional manual drilling, with production expected to begin soon.

Myanmar currently imports about 97% of its fuel, making it vulnerable to global supply disruptions. Authorities are therefore working to increase oil and gas production, expand refining capacity, and upgrade existing facilities, including the Thanlyin refinery built in 1982.

The company pledged to fulfill its commitments and deliver results as quickly as possible.