Page 8 - AsianOil Week 08 2022

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More energy companies exit Myanmar,

EU levels additional sanctions

POLICY JAPAN’S Mitsubishi and Malaysia’s Petronas are the most likely candidate to acquire the divested
the latest large energy companies to announce assets.
their withdrawal from Myanmar owing to the The army seized power from the demo-
worsening humanitarian situation following a cratically elected Myanmar government and
military coup in February 2021. imprisoned leader Aung San Suu Kyi a year ago.
The two companies announced in mid-Feb- Protests have resulted in the deaths of around
ruary that they would divest their interests in 1,500 people and thousands of others have been
the Yetagun gas project, located off Myanmar’s detained. The coup has prompted the rise of
southern coast. Petronas, through subsidiary military groups that are fighting the Myanmar
PC Myanma (Hong Kong), holds a 40.9% inter- military. The growing violence in the country
est in the field, while Mitsubishi owns 1.93%. A has brought international condemnation and PTT is seen as
consortium including the Japanese government led energy companies to re-evaluate their oper-
and JX Nippon Oil & Gas Exploration holds ations in Myanmar. the most likely
19.3% and Thailand’s PTT International owns Meanwhile, the EU this week imposed addi-
the remaining interest. tional sanctions on the junta, including MOGE, candidate to
In January, France’s TotalEnergies and which allows the junta to yield foreign currency
US-based Chevron announced that they to the military. A total of 65 individuals and 10 acquire the
were exiting Myanmar because of the human companies are now on the EU sanctions list. divested assets.
rights abuses. They have interests in the off- The sanctions against MOGE come after
shore Yadana gas project. Australia’s Woodside an international campaign. Activists argued
announced shortly thereafter that it would with- that the military could use foreign currency
draw from its exploration assets in Myanmar as earned by MOGE to continue its crackdown on
well. the citizenry. About half of Myanmar’s foreign
Shell confirmed last month that it had exchange is earned through sales of natural gas.
dropped its exploration licences in 2021. The company is expected to receive $1.5bn from
With new European Union sanctions lev- offshore gas pipeline projects during 2021-22.
elled against the stated-owned gas company, In announcing the sanctions on February
Myanmar Oil and Gas Enterprise (MOGE), 22, the EU said it was “deeply concerned by
as of February 21, it is likely that more foreign the continuing escalation of violence” and
firms invested in the country’s gas industry will “the evolution towards a protracted conflict
leave. with regional implications. Since the mili-
Since Thailand draws a significant portion of tary coup, the situation has continuously and
its gas imports from Myanmar, PTT is seen as gravely deteriorated”.™

P8 www. NEWSBASE .com Week 08 25•February•2022