Photo : Zayyatu (Magway) Legal export of the five years and above old oxen and buffalos are granted for the benefit of the local breeders in Magway region, according to the Regional Livestock Breeding and Veterinary Department. “But I’ll keep going, even if I lose money. When Myanmar recorded its first confirmed case on March 23, locals closed the main road from Thabyenyo to the refineries at Kyaukka.“The impact from the fall in the price of oil has been more noticeable here than anywhere else,” Aung Khaing Win said.This crude is trucked to a refinery in Kyaukka, in Sagaing Region’s Monywa Township, and from there to the gold and jade mines of Sagaing Region and Kachin State.Sign up for our Frontier Fridays newsletter. Couple Good.
(Nay Aung | Frontier)Because the fields are unregulated – no permits are issued, and production is only taxed when it is transported ¬– nobody knows exactly how many wells there are. “Prior to COVID-19, the region had around 500,000 people working in the oil business,” said local Pyithu Hluttaw representative U Ye Tun Win (National League for Democracy, Pauk).“Storing oil in a large hole lined with a plastic sheet is cheaper than a metal storage tank.
xporters Yangon or Mandalay ports or border trade with China Traders Mandalay Commodity Exchange Commission (publishes prices) rokers Magway Weighs and bags. Prices at Htangaing are K50,000 a barrel ¬ about K15,000 lower than Thabyenyo ¬ and well owners say they are only able to cover labour costs. This is my career – I have nothing else to do. Suddenly we had an even bigger problem – we were still producing many barrels, but we couldn’t make any money … We are making a loss on every barrel we produce,” said Ko Min Min Aung, 35, who produces about 10 barrels a day from five wells at the Htangaing field in Minhla.Because of the lower production, the price at Htangaing and other fields at Minhla for a plot big enough to sink a well is significantly less than at Thabyenyo, ranging from K500,000 to K2 million.Most tried to continue producing oil and wear the losses.
Many shops have closed and sales are down at those that have remained open. If we strike oil, we are still losing.”Drilling is also less expensive because the wells do not need to be as deep.At fields in Minhla, workers who ladle the oil seeping from the wells into a container are paid K10,000 a day.
(Nay Aung | Frontier)With prices so low, few wells are being sunk.
With the mini-grid, up to 400 households in Magway’s Lel Ma village now have access to electricity.
An exploratory well costs at least K20 million, said U Mar, a well owner at Thabyenyo. Solo Good. “But the present situation is different. Although the price has fallen, the ladling of the oil must continue if the owner wants to keep the field running in the future.People in the industry say the situation is unprecedented.There’s a saying that the only way to make money in a gold rush is by selling shovels. At least two are needed in each well.
They have since risen to about K50,000 – Thabyenyo prices are generally K15,000 higher than other fields in Magway – but business remains slow because this …
(Nay Aung | Frontier)U Khin Maung Win, another well owner at the Htangaing field, said the cost of production had actually risen in recent months because COVID-19 restrictions had made equipment and supplies more expensive.Stay on top of Myanmar current affairs with our Daily Briefing and Media Monitor newslettersReflecting the downturn in business, Aung Khaing Win said his daily fuel sales had fallen from around K1 million a day to about K250,000 since the COVID-19 crisis began.Oil wells at the Htangaing field in Magway Region’s Minhla Township.
As prices began to plummet in February and March, well owners faced a difficult decision. (Nay Aung | Frontier)From March 15 it became impossible to sell oil and most people left Thabyenyo, but well owners retained a small number of workers to continue drawing oil and watch over their equipment.
Myanmar’s electrification rate is one of the lowest in the world at around 50 percent. “Out of 10 exploratory wells, about two or three will be successful.
by deischi.