A CNPC executive and a representative from Myanmar’s energy ministry signed the deal, witnessed by China’s Vice President Xi Jinping and Vice Chairman of Myanmar’s State Peace and Development Council Maung Aye.
According to the agreement, the South East Asia Crude Pipeline Company Limited is endowed with franchise rights of the China – Myanmar pipeline, and will be responsible for the construction and operation of the pipeline. The company also has related rights of tax remission, crude transit, import and export customs clearance and right-of-way operation.
The agreement also stipulates that the Myanmar government will ensure the company’s ownership of the pipeline and guarantee the safety of the development.
CNPC started building a crude port in Myanmar on 31 October 2009 as part of the pipeline project.