Ar­ti­sanal oil li­cences to be is­sued this month

The Myanmar Times - - Business - PYAE THET PHYO pyae­thet­phyo@mm­times.com – Trans­la­tion by Win Thaw Tar and Zar Zar Soe

OIL re­fin­ing li­cences are to be is­sued, start­ing this month, the govern­ment has an­nounced. At a Novem­ber 10 press con­fer­ence, U Htay Aung, per­ma­nent sec­re­tary of the Min­istry of Elec­tric­ity and En­ergy, said the Union govern­ment would work with state and re­gion au­thor­i­ties in hand­ing out the li­cences, from Novem­ber 16, 2016, to March 31, 2017. The tem­po­rary li­cences to re­fine lo­cal crude will be is­sued to com­pa­nies en­gaged in ar­ti­sanal oil drilling and crude-oil re­fin­ing.

“We didn’t is­sue tem­po­rary li­cences for the lo­cal oil-re­fin­ing busi­ness. When we is­sue a li­cence, we will need to know what kind of tech­niques the ap­pli­cant will use, what their safety mea­sures are and how they will com­ply with en­vi­ron­men­tal pro­tec­tion rules,” said U Htay Aung.

The reg­u­la­tions will re­strict ap­pli­cants for the tem­po­rary li­cences from re­ceiv­ing crude from any com­pany other than those al­ready au­tho­rised to carry out ar­ti­sanal oil drilling. Li­cence hold­ers must re­veal the sources of their oil and the amount to be re­fined. They must have a pro­duc­tion ca­pac­ity of at least 1000 to 3000 gal­lons of crude in a 24-hour pe­riod.

Lo­cal oil re­finer­ies granted a li­cence must present monthly re­ports of the amount of crude oil used and its pro­duc­tion to the min­istry and re­spec­tive sub-com­mit­tees. Be­fore March 31, the last day of the fi­nan­cial year when the li­cences ex­pire, com­pa­nies may ap­ply for a one-year ex­ten­sion. The re­finer­ies will be as­sessed for taxes, and will be re­quired to colour-code their pro­duces: pink for paraf­fin, green for petrol and indigo blue for diesel.

In 2015-16 fi­nan­cial year, re­fined oil pro­duc­tion was about 500,000 gal­lons. There are about 237 oil re­finer­ies in op­er­a­tion.

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