US energy giant Chevron has completed its withdrawal from Myanmar, relinquishing its 41.1% stake in the country’s Yadana natural gas project, reported Reuters.
The decision comes two years after the company announced its intention to leave the South East Asian nation following a military coup.
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Rather than selling its share, Chevron’s stake was redistributed among the remaining shareholders, Thailand’s PTT Exploration and Production (PTTEP) and the state-owned Myanma Oil and Gas Enterprise (MOGE).
PTTEP recently confirmed the completion of Chevron’s withdrawal process, which increased its operated participating interest in the Yadana field to 62.9%.
Chevron owned the non-operated stake in the Yadana gas field through its subsidiary Unocal Myanmar Offshore (UMOCL).
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Myanmar has faced significant turmoil since the military overthrew the elected government in 2021.
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By GlobalDataIn a statement, a Chevron representative said: “The withdrawal gives effect to our intention to exit Myanmar in a controlled and orderly manner, following the February 2021 coup, and ongoing humanitarian crisis.”
The Yadana field, situated in the Gulf of Martaban, has been a vital source of natural gas, producing approximately six billion cubic metres per year, with the majority being exported to Thailand and the remainder supplied domestically to MOGE.
Following the coup, MOGE fell under the control of the junta.
Chevron’s announcement of its plans to exit Myanmar came in January 2022, followed by an agreement in February 2023 to sell its assets, including its stake in the Yadana gas field.
According to GlobalData, the Yadana Project’s conventional gas field has recovered 73.37% of its total recoverable reserves, with peak production occurring in 2012.
The field is expected to continue production until it reaches its economic limit in 2039 and currently contributes around 38% of Myanmar’s daily output.
Chevron stated that it has conducted its “exit from Myanmar in a responsible, orderly and safe manner, in accordance with international law and trade sanctions”.
TotalEnergies exited Myanmar in July 2022, citing the worsening human rights situation as a result of the military coup.
The French energy giant withdrew from the Yadana field and the Moattama Gas Transportation Company without seeking financial compensation.
