Junta invites China to expand oil and gas interests in Myanmar

By Admin 23 Oct 2025

DMG Newsroom

23 October 2025, Mrauk-U
 
Myanmar’s military regime has invited the Chinese government to work on new projects to expand oil and gas production in Myanmar, the junta-controlled Myanma Alinn daily reported on October 23.
 
The invitation was made by junta-appointed Energy Minister U Ko Ko Lwin, who is in China to discuss further exploration of new offshore oil and gas blocks in Myanmar.
 
U Ko Ko Lwin invited the Chinese government to invest in Myanmar’s oil and gas projects, to transport the natural gas produced through the existing natural gas pipeline, and to jointly explore and produce new offshore blocks, Myanma Alinn reported.
 
A junta delegation led by U Ko Ko Lwin is in China to attend the 2025 International Forum on Energy Transition (IFET) and made the remarks while meeting with Chinese state-owned energy companies including China National Oil & Gas Exploration and Development Corporation (CNODC), and China National Petroleum Corporation. 
 
Discussions were held to provide assistance for the human resources development needed in Myanmar’s energy sector, including training in management, economics, and legal matters related to projects.
 
The military regime has not provided specific details on when or where the new offshore blocks that the Chinese government is invited to invest in will be implemented, but political analysts believe that they are possible off the coast of Arakan State.
 
“Simply put, the Arakan Army does not dare to attack foreign projects in Arakan State. Now, with Chinese projects in Kyaukphyu, the military regime has advantages. Therefore, the military regime, which is militarily losing to the Arakan Army, likes the Chinese projects throughout Arakan State,” said a political analyst in Arakan State.
 
The offshore blocks currently producing natural gas in Myanmar are located off the coast of Tanintharyi and Arakan.
 
China is the main investor in offshore blocks in Arakan State and exports gas from those blocks to its southern Yunnan province via pipeline.
 
China is also exporting oil purchased by ship from Middle Eastern countries to China through pipelines via Maday Island in Kyaukphyu Township, to ensure its safe and fast delivery.
 
“Myanmar military leaders will sell all the natural resources in the country, both above and below ground. Whenever there is a military or political crisis, military leaders have used these methods repeatedly. Now, I see them as a way to bribe the Chinese government with Chinese projects,” said a local man in Kyaukphyu.

Oil and gas projects in Arakan State are worth up to $7 billion annually, with the military regime receiving more than $500 million annually, according to a report by Arakan Oil Watch (AOW) released in April.
 
There is ongoing fighting between the Myanmar military and the Arakan Army near Kyaukphyu and the Shwe oil and gas pipelines, with the latter controlling parts of the project area and surroundings.