Phyo/Thant Zin (NSS)- Sept 29

A source close to the oil blocks community told the Statesman that oil entrepreneurs aligned with the PDF have amassed wealth mounting to hundreds of millions of kyats over the past five years while operating in the wells located in Myaing and Pauk townships in Magway Region, an area famously dubbed ‘Anyar Dubai.’ 

Local "3- Pa" groups operating under the NUG had controlled this area since 2022. However, after reaping substantial profits, a conflict of interest arose within the NUG itself this April.

Even before that, the “3-Pa” group had been collecting taxes from local small-scale operators and granting them permission to extract oil.

The sources stated that small-scale operators amassed fortunes amounting to hundreds of millions of kyats over a period of more than five years. They achieved this by paying a tax of 5,000 kyats per barrel of crude oil to appease local "3-Pa" groups, thereby securing the profits for themselves.

“Apart from those working for the government, anyone who can get there goes to work in these areas. It has become completely unregulated. Those who get along with the PDF dig for oil and become incredibly wealthy. Amid high oil prices, there are no limits, no transport tax, no compulsory sales to the government, so they have an advantage,” he said.

The aforementioned source had previously informed The Statesman that this region renowned as ‘Anyar Dubai’ was Myanmar's largest oil-producing area. It is five times larger than the Tetma oil field in Nyaung-U Township and is estimated to produce approximately three times more oil.

He stated that while the State collected over 13 billion Kyats annually totaling 54 billion Kyats over four years in tax revenue from the Tetma oil field, the Anyar Dubai has remained outside government control for more than five years; estimating that these areas have an output approximately three times that of Tetma, the situation represents a loss of billions of kyats in national revenue.

“The loss of state revenue is substantial. The Tetma oil field paid approximately 54 billion kyats in taxes from May 2020 to May 2023. At that time, Myaing and Pauk areas produced about three times more; just imagine the figures over the past six years,” he said.

The highest-producing oil sites in the region are the Kyaukkwet, Letpando, and Ayadaw fields located near Myaing-Pauk and the Sabai-Thagyitaung oil fields, situated near Pauk-Pakokku townships.

With a barrel of crude oil currently priced at 800,000 kyats, refined oil fetches up to 1 million kyats per barrel; this crude oil is primarily transported into the Sagaing Region via the Pathein-Monywa Road.

He said, “Some there earn around 40 million kyats daily. They also sell crude oil, but they mainly ship refined oil—processed in Wedaung Village— because it is less bulky.”

In June, military columns began conducting clearance operations in Myaing Township; by August, they had reached the vicinity of oil fields near the border of Myaing and Pauk townships, where clashes are currently reported between the military and local PDF groups. 

“Military columns move in, the other side withdraws, then the columns pull back and the armed group moves right back in. it’s an endless cycle. Unless the Tatmadaw establishes a permanent base there, the whole area will just remain in a state of chaotic flux,” a local source said. –