Petronas subsidiary declares force majeure on Yetagun field offshore Myanmar

5 April 2021 (Last Updated April 5th, 2021 11:41)

PC Myanmar (PCML), a subsidiary of Malaysia's oil and gas company Petronas, has declared force majeure (FM) on its Yetagun gas and condensate field located offshore Myanmar.

Petronas subsidiary declares force majeure on Yetagun field offshore Myanmar
The Yetagun gas and condensate field covers an area of approximately 24,130km². Credit: Charlie Hang on Unsplash.

PC Myanmar (PCML), a subsidiary of Malaysia’s oil and gas company Petronas, has declared force majeure (FM) on its Yetagun gas and condensate field located offshore Myanmar.

Covering an area of approximately 24,130km², the Yetagun gas and condensate field spans in blocks M12, M13 and M14 in the Gulf of Martaban, Andaman Sea.

Petronas said that force majeure on the field has been issued due to gas production depletion at the field.

It follows the wells’ deliverability challenges, which resulted in reduced production rate below the technical threshold of the offshore gas processing plant.

PCML country head Liau Min Hoe said that the Yetagun field was producing well below the technical turndown rate of its facilities before the cessation of production.

Hoe added: “There has been a drastic decline in production level due to subsurface challenges in the field since January 2021 and it has further deteriorated recently.

“Continuing to produce at a low rate would impose significant risks to the integrity of our assets and the safety of our people. As a responsible operator, we had to temporarily cease production and declare force majeure.

“We have put in place an intervention plan to mitigate the matter, and have informed the host authority, our partners and gas buyer of our decision.”

Production at the Yetagun field has been ceased temporarily by PCML.

PCML, together with its affiliate, owns 40.9% interest in the field while Myanma Oil and Gas Enterprise owns 20.5% stake, Nippon Oil Exploration (Myanmar) holds 19.3% interest and the remaining 19.3% stake is owned by PTTEP International.

In February, Petronas and PTT Exploration and Production Public Company (PTTEP) made sweet gas discovery following the drilling of the Dokong-1 wildcat exploration well in Block SK417 offshore Malaysia.