Locals Concerned Over Foul Odor and Wastewater Leaks Near Maday Island Oil Storage Facility

News ၊ June 30, 2026

The Chinese project on Maday Island, as seen in 2022. (Photo - DMG)

Locals are growing increasingly concerned due to the emergence of foul odors and polluted wastewater near the oil storage facility on Maday Island, Kyaukphyu Township, Arakan State the site of Chinese projects.

The foul odors and wastewater leaks reportedly began during the first week of June. Although project officials have been searching for the source using excavators, no detailed explanation has yet been provided to the local residents.

"The terrible smell, which resembles ammonia, has been coming out for nearly a month now. Now they are digging and searching with backhoes (excavators). However, security guards have been deployed around the area, and no one is allowed to enter or leave, so we don't know the details," said a man working at one of the projects on Maday Island.

It is learned that out of concern that locals might discover what happened, the area has been designated as a restricted zone with strict, full security deployment, and search operations using heavy machinery are being conducted only at night.

Furthermore, because the polluted wastewater is flowing into the river, local residents who rely on the fishing industry near the shore are also facing hardships.

"Black, polluted greasy residues are floating in the river. No one is allowed to enter the river surface or the shore anywhere near that area. When we ask why, they don't say anything," a local woman said.

Since the area around the riverbank has been barred and restricted, dozens of locals who depend on the river to catch fish and prawns for their livelihood are currently unemployed.

On the other hand, locals suspect that this could be a leak from the oil and gas pipelines or wastewater discharged from the factories, and they worry about the negative impacts it will have on the environment and the ecosystem.

A local man from Kyaukphyu who monitors Chinese projects suggested, "If these foul odors and waste materials toxicify the environment, who will take responsibility? What is certain is that the locals will have to bear all the consequences, so we should demand that this be disclosed transparently."

In addition, monitors of Chinese projects stated that since Maday Island faces the Thanzhit River, which surrounds Kyaukphyu Township, it is necessary to conduct an investigation alongside local authorities to determine whether the waste seeping into the river contains toxins.

On Maday Island, besides the deep-sea port where large ships can dock, there are crucial facilities for storing, refining, and controlling the oil and gas being transported to China.

Locals have stated that although the construction of these facilities began back in 2010, there has been no transparent disclosure up to the present day regarding whether there are environmental impacts related to waste disposal.

According to a report published in April 2025 by Arakan Oil Watch (AOW), this oil and natural gas project exports and sells up to 7 billion dollars in value annually, from which the coup military receives over 500 million dollars.

Source@DMG