YANGON -- Myanmar has determined to raise its onshore crude oil production starting December to help meet the country's oil demand by drilling more test wells, the local newspaper Myanmar Times reported Monday.

The onshore oil output will be increased to 10,000 barrels from the current 9,400 barrels per day, the state-run Myanmar Oil and Gas Enterprise (MOGE) was quoted by the newspaper as saying.

According to the report, Myanmar yields about 20,000 barrels of oil per day from both onshore and offshore areas, accounting for 40 percent of the total amount the country consumes. The rest of demand was fulfilled through import from Singapore and Malaysia.

To cut the cost of oil imports, the government introduced a program in August 2004 to substitute fuel with gas for transportation purpose, converting some 9,000 diesel and petrol vehicles to run on compressed natural gas (CNG).

Myanmar's 19 onshore oil fields include Yenangyaung, Ayadaw, Chauk, Myanaung, Mann, Kyaukkhwet/Letpando, Htaukshabin, Kanni and Nyaungdon.

Meanwhile, the Myanmar energy authorities announced in March 2005 that it would not grant onshore oil exploration by new foreign oil companies but the MOGE.

In addition to the onshore areas, Myanmar has abundance of natural gas resources in the offshore areas. With three main large offshore oil and gas fields and 19 onshore ones, Myanmar has proven recoverable reserve of 18.012 trillion cubic feet (TCF) out of 89.722 TCF's estimated reserve of offshore and onshore gas, experts said.

The country is also estimated to have 3.2 billion barrels of recoverable crude oil reserve, official statistics indicate.

The Myanmar figures also show that in the fiscal year 2005-06 (April 2005-March 2006), the country produced 7.962 million barrels of crude oil and 11.45 billion cubic meters (BCM) of gas. Gas export during the year went to 9.138 BCM, earning over 1 billion U. S. dollars.

Since 1988, investment in the oil and gas sector has reached 2.635 billion dollars as of March this year, dominating the country' s foreign investment sectorally. According to official statistics, there are nine foreign oil companies engaged in onshore oil and gas exploration and production.

Foreign oil companies engaged in the oil and gas sector mainly include those from Australia, Britain, Canada, China, Indonesia, India, South Korea, Malaysia and Thailand. Source: Xinhua News Agency