Villages hope to get rich from Myanmar's secret oil rush

[Jonathan Fairfield]

Villages hope to get rich from Myanmar's secret oil rush

BY ARTHUR NAZARYAN

Myanmar is one of the world's oldest oil-producing countries, having exported its first barrel in the mid-1800s.

Since then, however, Myanmar's onshore oil reserves have gone mostly untapped — largely due to decades of rule in the 20th century by a military junta that nationalized the industry, while discouraging both foreign and local drilling. But after a civilian government came to power in 2011, some restrictions have been lifted, including one on independent oil drilling.

As a result, an oil rush has recently kicked off, with hundreds of local speculators and laborers flocking to the oil fields along the Irrawaddy River in search of wealth.

Once-quiet villages have become boomtowns surrounded by fields of DIY oil rigs made out of bamboo and metal, and powered by generators. Speculators must pay both local authorities and the villagers whose land they want to drill on. And if they do strike oil, they better hope it’s not too much — Myanmar's government is known to confiscate any drill site it deems sufficiently profitable.

Read more: http://mashable.com/2015/07/12/myanmar-oil-rush/

[callaway]

Confiscate viable leases??? Great way to encourage investment.

[tomross46]

This reminds me of the Oil Scam, that happened here in Thailand around thirty years ago. Many people invested in an oil racket involving the sale of oil, but the oil did not exist.

[khunPer]

Great photos in the original article...