Two Russian oil companies will conduct oil and gas exploration and production in an inland area of Myanmar, sources with the state-run Myanmar Oil and Gas Enterprise said Saturday.

The Singaporean-registered Silver Wave Sputnik Petroleum Pte Ltd and the Silver Wave Energy Pte Ltd will carry out the undertakings in Ziphyutaung-Nandaw region, the sources said.

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

According to Business Week, since Myanmar liberalized its investment code in late 1988, the military-ruled nation has attracted its largest foreign investments in the energy sector.

It has signed oil and gas exploration contracts with France’s Total SA, Unocal Corp. of the United States, Malaysia’s Petronas, Thailand’s PTT Exploration & Production PCL, Daewoo of South Korea and companies from Russia, India and Australia.

New contracts continue to be signed despite the condemnation of the military regime by Western nations for its poor record on human rights and its failure to hand over power to a democratically elected government.

The United States and the European Union have imposed economic sanctions on Myanmar in recent years as a result.

Myanmar’s current junta took power in 1988 after crushing the pro-democracy movement led by Aung San Suu Kyi. In 1990, it refused to hand over power when Suu Kyi’s party won a landslide election victory.

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