Burmah Oil

Burmah Oil Company

Company type	Public (former member of FTSE 100)
Industry	Oil and gas
Predecessor	Rangoon Oil Company Ltd
Founded	1886 (1886)
Founder	David Sime Cargill
Defunct	2000 (2000)
Fate	Acquired by BP Amoco
Headquarters	Glasgow , Scotland, United Kingdom
Area served	British Empire, India, Burma (Myanmar), Bangladesh, Australasia, Americas, Canada, North Sea
Key people	John Cargill (son of founder, took control in 1904)
Products	Oil and gas exploration and production; petroleum products marketed under BOC brand; Castrol lubricants (after 1966 acquisition)
Parent	BP Amoco (from 2000)

The Burmah Oil Company was a prominent British oil company and a former member of the FTSE 100 Index. In 1966, it acquired Castrol and subsequently adopted the name Burmah-Castrol. The enterprise was ultimately taken over by BP Amoco in 2000.

History

Established in Glasgow in 1886 by David Sime Cargill, an East India trader, Burmah Oil emerged as the successor to his Rangoon Oil Company Ltd, aiming to develop oil fields across the Indian subcontinent. Control of the company transitioned to his son, John Cargill, in 1904.

In 1905, Burmah entered into an agreement with the Admiralty to supply fuel oil for naval vessels from Rangoon, facilitating the Royal Navy’s transition from coal to oil-based fuel.

During the early 20th century, Burmah Oil established the Anglo-Persian Oil Company, holding a 97% stake, to promote oil exploration in Persia. This entity later became known as the Anglo-Iranian Oil Company and eventually transformed into BP, positioning Burmah Oil as the largest oil enterprise within the British Empire.

In 1938, Burmah Oil encountered significant nationalist unrest and a widespread strike in British Burma, referred to as the 1300 Revolution. The industrial action concluded primarily due to exhaustion following certain concessions.

For nearly one hundred years, Burmah Oil played a crucial role in discovering oil in the Middle East and marketed its products under the BOC brand in regions including Burma, Bangladesh (formerly East Pakistan), and Assam (India). Additionally, it operated the Burmah-Shell partnership alongside Shell throughout India.

Prior to 1901, Burmah held exclusive rights in Burma until competition arose from Standard Oil Company. Its operations continued there until nationalization by Ne Win in 1963, which led to the establishment of the state-run Myanma Oil and Gas Enterprise.

In 1964, Burmah Oil achieved a significant legal victory in Burmah Oil Co. v Lord Advocate, concerning compensation related to wartime damage inflicted on its Burmese oil installations. Nonetheless, this decision was subsequently nullified by the enactment of the War Damage Act 1965.

Following its withdrawal from Burma in 1963, Burmah broadened its exploration activities across India, Pakistan, Bangladesh, Australasia, the Americas, Canada, and the North Sea up until 1986. The acquisition of Castrol in 1966 prompted a rebranding to Burmah-Castrol.

The company experienced substantial financial setbacks involving its tanker fleet in 1974. Intervention by the Bank of England included a rescue plan featuring a one-year repayment deferral and a guarantee covering $650 million in foreign currency debt to restore operational stability.

In 2000, BP Amoco acquired Burmah-Castrol, concluding its independent existence.

Further reading

• T.A.B. Corley authored a comprehensive two-volume history of the company: A History of the Burmah Oil Company, 1886–1924 (1983) and A History of the Burmah Oil Company. Vol 2, 1924–66 (1988).