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Oil refinery zone to be permitted in Magwe Division

A labourer makes a list at a warehouse selling oil beside in Rangoon on 18 May 2009. (Reuters)

A new oil refinery zone is to be built in Magwe Division, a regional government minister announced this week.

The decision to establish an oil refinery zone was made after a series of seizures of illegal refineries across the region, Minister for Natural Resources, Forestry, Electricity and Energy for the Magwe Division, Myint Zaw, told DVB on Monday.

“We decided to allow the running of medium to small oil refineries that produce good quality fuel oil for vehicles after negotiating with the Union government,” he said.

On August 17, 18 and 19, illegal oil refineries in Pauk Township in Pakokku District were confiscated.

Regional police seized 78 oil refineries in three days, and confiscated 2,805 gallons of crude oil and 1,270 gallons of diesel, said Major Soe Win, the Magwe district police force chief.

Although there are two licensed oil fields in Myaing Township and Pauk Township, Pakokku District, Magwe Region no oil refining process has been permitted until now.

“The Union government has informed us that we can grant permits to operate oil refineries in Magwe Division and the regional government will allow to establish oil refinery zone in Pakokku Township,”  the minister said.

“The minimum quality of diesel and petrol oil from the legalized refineries shall be the same as the product from  Man Than Pa Yar Kan refinery in Minhla Township. We will also negotiate with the Ministry of Electricity and Energy for the volume of the daily output,” he added.

The minister said he will issue the licenses based on oil quality and output per day:“We grant licenses to operate refineries that can refine from 3,000 gallons to 30,000 gallons of fuel oil.”

The regional government will provide the oil refinery zone to access to water and electricity.

The tender bid is to be placed in the state-run newspapers in the near future.