Petronas, PTTEP exit Myanmar’s Yetagun field
Malaysia’s Petronas and Thai state-run PTTEP on April 29 announced their withdrawal from Blocks M12, M13 and M14 located in the Yetagun field, offshore Myanmar.
“The decision was made following a thorough techno-commercial review in alignment with Petronas’ asset rationalisation strategy for a portfolio that fits with its growth ambitions amid the changing industry environment and accelerated energy transition,” the Malaysian state-owned company said.
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Petronas Carigali Myanmar, a unit of Petronas, had operated the Yetagun gas project since 2003, where it held 40.9% participating interest. Other partners included state-owned Myanma Oil & Gas Enterprise (20.5%), Japanese consortium Nippon Oil Exploration (19.3%) and PTTEP (19.3%).
PTTEO CEO Montri Rawanchaikul said the company has notified the joint venture partners in the Yetagun project and Taninthayi Pipeline Company, a gas transportation company delivering gas from the Yetagun project to Thailand, of its decision to withdraw as the partner from both entities. Its shares of 19.31% will be allocated proportionately to the remaining shareholders with no commercial value and will be effective upon regulatory approval.
The exit by these two companies follows a recent decision by TotalEnergies, Chevron and Woodside to withdraw from their operations in Myanmar citing deteriorating human rights conditions in the country. According to a report by Reuters, Japan's Mitsubishi Corp. is also likely to withdraw from the Yetagun field. The company, which indirectly holds a 1.93% stake in the Yetagun gas field, is in talks with other partners in its JX Myanmar joint venture.