The military council announced on May 30 that it has signed a new contract with a Thai company to expand operations in the oil and natural gas sector, which serves as one of the council’s main revenue streams. Gulf Petroleum Myanmar Company from Thailand and the military-controlled Myanmar Oil and Gas Enterprise (MOGE) signed a Production Sharing Contract for exploration and production of oil and natural gas in the Mottama offshore block (M-10) in Naypyidaw on May 29. The project, named Minye Thu Project, marks the first offshore project contract signed under the current military council’s administration.
The military council’s Minister of Energy, U Ko Ko Lwin, stated that this contract signing would strengthen financial investment in oil and natural gas exploration and production operations, leading to increased foreign currency earnings. According to their project timeline, they aim to begin initial natural gas production by 2028. However, following the military coup, MOGE has been sanctioned by Switzerland, the European Union, United States, United Kingdom, and Canada due to the military council’s killing of civilians and commission of war crimes. Despite these international sanctions, Thailand continues to maintain business cooperation with the military council.
According to the military council’s reports, they earned over 841 million US dollars from natural gas sales during a three-month period in 2023. Currently, four offshore projects – Yadana, Yetagun, Zawtika, and Shwe – are operational in Myanmar’s offshore territory. The Thai-owned Gulf Petroleum Myanmar Company, which has now signed this new contract, is also overseeing the Yetagun natural gas project, indicating an expansion of their cooperation with the military council. This new agreement represents a significant strengthening of economic ties between Thai business interests and Myanmar’s military regime, despite international condemnation and sanctions against the military council’s activities.
