Rebels seize junta oil field in central Myanmar

Insurgents in central Myanmar seized a junta oil field, rebel groups told Radio Free Asia on Thursday, the fourth such oil facility captured in recent fighting that has seen the military lose significant amounts of territory.

Myanmar has produced oil in the Irrawaddy River valley since the 19th century but its offshore gas fields are a much more important source of revenue for the junta that seized power in a 2021 coup.

Pro-democracy insurgent members of milita’s known as People’s Defense Forces, or PDFs, in the Magway region seized the Thagyitaung-Sabal oil field in Pakokku township on Tuesday following a pre-dawn assault on about 50 soldiers defending it,  a PDF spokesman told RFA. 

“We’ve been holding the field and have soldiers cutting off the ground route,” said Pauk township’s PDF information officer Ko Sit.

“Six junta soldiers were killed and two were arrested during the fighting,” he said. He gave no information on casualties among PDF fighters.

PDF fighters seized weapons and ammunition, and about six million kyat (US$1,000) in cash, he said.

The military responded with airstrikes and sent reinforcements to a police station in nearby Pauk township, Ko Sit said, adding that fighting continued into Wednesday as junta forces tried to regain control of the field.

RFA tried to contact Magway region’s junta spokesperson Myo Myint for comment but he did not return calls. 

The oil field, operated by the junta-owned conglomerate Myanma Oil and Gas Enterprise, or  MOGE, produced 119 barrels of crude oil and 2.5 million cubic feet (71,000 cubic meters) of natural gas per day in 2018, according to the Ministry of Electricity and Energy.

Resource-rich parts of Myanmar have seen heavy fighting this year as rebel groups try to capture them. Kachin state in northern Myanmar has jade and rare earth mines while parts of Shan state in the northeast has rich ruby mines.

PDF groups captured Myaing township’s Kyauk Khwet oil field on March 2 and Pauk township’s Letpanto oil field on April 19. On Aug. 15, PDF forces occupied the Pu Htoe Lon oil field in Gangaw township. 

RFA was not immediately able to contact the MOGE for comment about the latest loss of an oil field.  

The U.S. Treasury Department has described the MOGE as “the largest single source of foreign revenue for Burma’s military regime, providing hundreds of millions of dollars each year.” Last October, it announced sanctions against MOGE, banning companies from providing it with financial services.

Magway region has no privately owned oil fields, after the junta ordered their closure in June last year. Although it gave no reason, owners and workers said the junta was worried that profits were being used to fund PDFs.

Translated by RFA Burmese. Edited by Kiana Duncan and Mike Firn.