Myanmar has entered into a contract with a Chinese company to enhance oil production at the Htaukshapin-Kanni onshore oilfield, as reported by state-owned media. The agreement was signed between Myanmar's Ministry of Electric Power and Energy and China's North Petro-Chem Corporation (Myanmar), a subsidiary of North Petroleum & Chemical Group (NPCC). The improved petroleum recovery contract aims to boost the country's oil output.

Union Minister Ko Ko Lwin emphasized the project's urgency, noting that it aligns with the nation's needs following the formation of a new Cabinet. He stated that increased oil production would improve the availability of petroleum products, benefiting the public. The Htaukshapin-Kanni oilfield, approximately 50 years old, requires modern technologies to raise production levels. The Chinese company was selected for its ability to provide appropriate technologies, equipment, skilled human resources, and sufficient investment.

Myanmar, which imports about 97% of its fuel, has been affected by the energy crisis stemming from the Middle East conflict. To address this, the country has been actively inviting international companies to explore, drill, and produce onshore and offshore oil and natural gas resources. Additionally, the ministry is considering refining domestically produced oil, with plans to establish new refineries and upgrade the Thapayakan refinery, built in 1982, to operate at full capacity.