CNPC, Myanmar sign oil pipeline agreement

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Dec. 22 – China National Petroleum Corp. (CNPC) has signed an agreement with Myanmar's ministry of energy for exclusive rights to construct and operate the proposed Myanmar-to-China crude oil pipeline.

CNPC said the agreement grants the operating concession of the pipeline to the CNPC-controlled South-East Asia Crude Oil Pipeline Ltd., which will enjoy tax concessions and customs clearance rights.

The agreement also stipulates that the Myanmar government is to guarantee the company's ownership and its exclusive operating rights, along with the safety of the pipeline.

In late October, CNPC began constructing a port in western Myanmar as part of the Myanmar-China crude pipeline project (OGJ Online, Nov. 4, 2009).

Plans call for the 771-km pipeline between Maday Island, in western Myanmar and Ruili, in the southwestern Chinese province of Yunnan, initially to carry 12 million tonnes/year of oil.

Contact Eric Watkins at

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