US oil major Chevron has agreed to divest its assets in Myanmar to Canadian company MTI for an undisclosed sum, reported Reuters.

The deal will allow Chevron to exit the Asian country. Several other oil companies have recently decided to leave the country due to the prevailing humanitarian situation in the wake of the military coup in 2021.

Under the deal, Chevron will divest its 41.1% stake in the Yadana Project to a subsidiary of MTI.

Currently, Chevron owns the non-operated stake in the Yadana gas field through its affiliate Unocal Myanmar Offshore (UMOCL).

The field is located in the Andaman sea, around 60km offshore from the nearest landfall in Myanmar.

Last July, TotalEnergies divested its stake in the Yadana field, with no commercial value.

This stake was divided between the remaining joint venture partners, namely Myanma Oil and Gas Enterprise (MOGE), Chevron, and Thailand’s PTT Exploration & Production (PTTEP).

PTTEP subsequently took over as the new operator of the project.

Last year, Reuters quoted a Chevron spokesperson as saying: “In light of circumstances in Myanmar, we have reviewed our interest in the Yadana natural gas project to enable a planned and orderly transition that will lead to an exit from the country.

“As a non-operator with a minority interest in the project, our immediate priority remains the safety and well-being of employees, safe operations, and the supply of much-needed energy for the people of Myanmar and Thailand.”

The Yadana field has a production capacity of nearly six billion cubic metres of gas a year. Of this, about 30% is sold to MOGE for domestic use, while the remaining 70% is exported to Thailand.