Interra exits Myanmar oil project, selling stake to Chinese-linked firm after sanctions pressure

Singapore-listed Interra Resources Ltd. is withdrawing from one of Myanmar’s largest onshore oil projects, selling its entire stake to a Chinese-linked company after years of pressure over the project’s commercial ties to the military-controlled energy sector. The company announced on June 22 that it will sell its interests in the Chauk and Yenangyaung oil fields in Magway Region to Sinopetro Holdings Limited for US$7.8 million. The transaction ends Interra’s involvement in Goldpetrol Joint Operating Company, which operates two oil blocks covering nearly 450,000 acres and producing more than 2,000 barrels of crude oil per day. Interra held a 60% stake in the joint venture alongside China’s North Petroleum International Co. Ltd. According to Interra, the sale is driven by Myanmar’s deteriorating business environment. “The prolonged political situation in Myanmar” has created “an unfavourable business environment and operating condition,” the company said in its announcement. Sinopetro is owned by three shareholder companies, including the parent company of North Petroleum International, meaning the oil project will effectively come under Chinese control once the sale is completed. The withdrawal follows sustained criticism from Justice For Myanmar and other advocacy groups, which accused Interra of continuing to supply crude oil to the junta-controlled Myanma Oil and Gas Enterprise (MOGE), despite U.S. and European Union sanctions targeting the state-owned company. Justice For Myanmar said more than 2 million barrels of crude oil worth over US$150 million were sold from the Chauk and Yenangyaung fields to MOGE between the 2021 military coup and the end of 2023. The group argued that the sales undermined international sanctions while helping sustain fuel supplies for the Myanmar military. In response, Interra suspended trading on the Singapore Stock Exchange and announced it would seek legal advice to determine if its actions might have violated foreign laws. A source familiar with Myanmar’s oil and gas industry, speaking on condition of anonymity, said the company had also faced growing commercial pressure before deciding to leave the country. “Myanmar companies also tried to buy its place. Now that China has bought it, it has completely fallen under 100 percent Chinese control,” the source said. The source added that the Chauk and Yenangyaung blocks, with their daily output of 2,000 barrels of oil, remain among Myanmar's most productive onshore oil assets. Civil society organisations opposing military rule have alleged that crude produced at the fields is refined at the Man Thanpayarkan Oil Refinery, operated by the junta-controlled Myanma Petrochemical Enterprise, where it could ultimately be used to produce fuel for military aircraft and other military vehicles. Myanmar Now has not independently verified those claims. Earlier this year, civil society groups, labour unions, and anti-junta strike organisations based in Magway Region urged the Singaporean government to take action against Interra over its continued operations in Myanmar. The military has sought to expand domestic oil and gas production despite the country’s ongoing political and economic crisis, with state-controlled media recently highlighting new natural gas discoveries and plans for commercial extraction. However, continuing armed conflict, international sanctions, and investor concerns have made it increasingly difficult to attract new foreign investment. Interra’s departure marks another exit by an overseas energy company from Myanmar since the military seized power in 2021.

Interra exits Myanmar oil project, selling stake to Chinese-linked firm after sanctions pressure

The Singapore-based company was accused of undermining sanctions by providing the regime with millions of barrels of domestically produced oil

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