Page 4 - AsianOil Week 04 2022

AsianOil COMMENTARY AsianOil

IOCs announce Myanmar

withdrawal

TotalEnergies and Chevron said last week that they were exiting

Myanmar, while Shell confirmed that it had already abandoned

its holdings in the country

POLICY THE deteriorating political and humanitarian then, Myanmar’s security forces are reported
situation in Myanmar is prompting major inter- to have killed at least 1,400 people and arrested
WHAT: national oil companies (IOCs) to reconsider thousands, according to Assistance Association
TotalEnergies and their presence in the country. France’s TotalEn- for Political Prisoners, a local non-governmental
Chevron are exiting ergies and US-based Chevron said last week that organisation (NGO). The ruling junta disputes
Myanmar, where they they would withdraw from Myanmar, citing the figures.
partner in the Yadana gas worsening conditions in the country following According to TotalEnergies, it was initially
project. last year’s coup. The two companies are partners committed to continuing production at Yadana,
in the Yadana natural gas project off the coun- saying the field was essential to the supply of
WHY: try’s south-western coast and the Moattama Gas electricity to both Myanmar and neighbouring
The situation in the Transportation Co. (MGTC) transportation Thailand. However, it added that the worsening
country has deteriorated system, which carries gas from the field to the situation in terms of human rights and the rule
since a military coup took Myanmar-Thailand border. of law had caused it to reassess the situation.
place last year. TotalEnergies announced its exit in a press The Yadana field produces around 6bn cubic
release on January 21, with Chevron confirming metres per year of gas, roughly 70% of which
WHAT NEXT: to Reuters the same day that it was also with- is exported to Thailand. The gas is used to gen-
Thailand’s PTTEP is drawing from Myanmar. Meanwhile, Royal erate about half of the electricity that serves
considering whether to Dutch Shell confirmed on the same day that it Myanmar’s capital, Yangon, and also supplies
take over TotalEnergies’ no longer held exploration licences in the coun- the western part of Thailand. Gas is exported to
Myanmar assets. try as of 2021. Thailand via the MGTC system over a distance
of more than 400 km. It accounts for around
Reassessment 15% of Thailand’s gas demand, according to
The situation in the country has deteriorated Chevron’s website.
since the coup took place in February 2021, with The exit announcement comes after the
the army overthrowing Myanmar’s elected gov- French company had explored various alter-
ernment and imprisoning the country’s leader, natives, including targeted sanctions to restrict
then-State Counsellor Aung San Suu Kyi. Since revenues from Yadana going to the junta via

P4 www. NEWSBASE .com Week 04 28•January•2022