Thai, Malaysian firms pull out of Myanmar gasfield project

By The Irrawaddy 30 April 2022

BANGKOK—Thailand’s oil and fuel conglomerate PTTEP and Malaysia’s Petronas introduced Friday they’d withdraw from the Yetagun fuel venture in coup-hit Myanmar.

There was an exodus of worldwide power corporations from Myanmar together with Chevron and TotalEnergies following final yr’s army takeover and subsequent allegations of human rights abuses.

Greater than 1,800 civilians have died throughout a army crackdown and greater than 13,000 have been arrested, based on an area monitoring group.

Petronas subsidiary Carigali holds a roughly 41 % stake within the Yetagun venture whereas PTTEP has a 19.31 share.

“The withdrawal is a part of the corporate’s portfolio administration to refocus on tasks that assist the power safety for the nation,” PTTEP chief govt Montri Rawanchaikul mentioned in a press release Friday.

PTTEP mentioned its stake might be reallocated proportionately to the remaining shareholders with no business worth, efficient upon regulatory approval.

Petronas, which has operated the venture since 2003, mentioned in a press release the choice adopted a evaluation and was a part of an “asset rationalisation technique” to adapt to “the altering business surroundings and accelerated power transition”.

The 24,130 sq. kilometre discipline within the Gulf of Moattama produces pure fuel and condensate.

Japan’s Nippon Oil and Gasoline Exploration and Myanmar’s junta-linked Myanma Oil and Gasoline Enterprise have the remaining stakes within the venture.

PTTEP’s choice shouldn’t be the top of its involvement with Myanmar.

In March, PTTEP mentioned it can take over the working of Myanmar’s very important Yadana gasfield following the withdrawal of Chevron and TotalEnergies in January.

The American and French corporations mentioned they’d pull out of Myanmar following rising worldwide strain from human rights teams to chop monetary ties with the junta.

The Yadana fuel discipline within the Andaman Sea gives electrical energy to Myanmar and Thailand, certainly one of a variety of fuel tasks that Human Rights Watch says make up Naypyidaw’s largest supply of overseas foreign money income, producing greater than $1 billion yearly.

Myanmar’s army has pursuits in massive swathes of the nation’s financial system, together with oil and fuel.

Different worldwide corporations — together with British American Tobacco and French renewable power agency Voltalia —  have additionally pulled again from Myanmar since February final yr.

A spokesperson for rights group Justice for Myanmar known as on corporations concerned with the Yetagun fuel venture to utterly sever ties with the army.

“The sector is close to depletion and we name on Petronas and its worldwide companions to decommission the sector in accordance with environmental finest practices, and responsibly disengage,” Yadanar Maung mentioned.

“Petronas and their companions should guarantee no extra income flows to the Myanmar junta.”