Page 4 - AsianOil Week 17 2022

AsianOil COMMENTARY AsianOil

Myanmar’s E&P exodus continues

Petronas and PTTEP have announced their withdrawal from the Yetagun gas project in

Myanmar, though PTTEP will continue to participate in other projects in the country

PROJECTS & FOREIGN companies continue to pull out of and PC Myanmar (Hong Kong) Ltd (PCML) –
COMPANIES Myanmar in the wake of the military coup in had withdrawn from blocks M12, M13 and M14
the country last year and the subsequent crack- in the Yetagun field.
WHAT: down on dissent in the country. This week, one PCML had operated Yetagun since 2003 and
Malaysia’s Petronas particular project in Myanmar – the offshore held a 40.9% interest in the project, the com-
and Thailand’s PTTEP Yetagun gas field – was in the spotlight as both pany noted. It made no mention of the polit-
have announced Malaysia’s Petronas and Thailand’s PTT Explora- ical or human rights situation in Myanmar in
their withdrawal from tion and Production (PTTEP) announced their the brief statement. Instead, Petronas said the
Myanmar’s Yetagun gas exit from the field. decision to withdraw had been made “follow-
field. Petronas had already said in February that ing a thorough techno-commercial review” as
it would exit the project and now appears to the company refines its portfolio to align with
WHY: have wrapped up this process. PTTEP’s case, its growth ambitions, the “changing indus-
Several foreign oil and meanwhile, is unusual as the company contin- try environment” and the accelerating energy
gas companies have ues to play a major role in Myanmar’s oil and transition.
withdrawn from Myanmar gas production, and is due to take over the In a separate announcement, also made on
since last year’s military operatorship of the Yadana field this summer April 29, PTTEP said that “as part of its portfolio
coup. as France’s TotalEnergies exits the country and management” it was exiting both Yetagun and
its operating interest in that field. And indeed, Taninthayi Pipeline Co. (TPC), a gas transpor-
WHAT NEXT: both PTTEP and Petronas cited portfolio man- tation company that delivers gas from the field
PTTEP will continue to agement as their reason for exiting the Yetagun to Thailand.
have a major presence project. Nonetheless, their exit from the field PTTEP owns stakes of 19.31% in the joint
in the country as it takes comes as oil and gas companies come under ventures, which it said would be allocated pro-
over TotalEnergies’ growing pressure from human rights groups portionately to the remaining shareholders with
operatorship in the and Myanmar’s shadow civilian government no commercial value. The transfer of PTTEP’s
Yadana field. over their operations in the country. stake will be effective upon regulatory approval
of the move.
Yetagun exit Previously, Myanmar Oil & Gas Enterprise
Petronas announced on April 29 that its subsid- (MOGE) held a 20.5% stake in Yetagun, while
iaries, Petronas Carigali Myanmar Inc. (PCMI) Nippon Oil Exploration (Myanmar) owned

P4 www. NEWSBASE .com Week 17 29•April•2022