When an American company withdraws from ‘Yadana’ gas field, Burma

Previously, it had been more than two years. Chevron has condemned the violence and human rights violations in Myanmar. and previously announced that there would be a withdrawal from this gas field

Instead of selling its 41.1 percent stake in the gas well, Chevron transferred the shares to the company. Thailand’s PTTEP and Myanmar’s state oil and gas enterprises are called Myanmar Oil and Gas Enterprise Company (MOGE)

PTTEP, the operator of the gas field, said on April 5 that The company’s shares in Yadana rose to 62.95 percent.

“The withdrawal follows our determination to leave Myanmar in a controlled manner. and wishes to withdraw following the February 2021 coup and the ongoing humanitarian crisis,” a Chevron spokesperson said in a statement.

In PTTEP’s letter to the Stock Exchange, it stated that it will continue to manage this gas field because there is “Energy strategic importance” to Thailand and Myanmar

Of course, the Thai government must be questioned whether maintaining an agreement with the Burmese military government in this case could be interpreted as supporting the current regime, which has been condemned by the United Nations and many others. Is it an international organization?

To this day, PTTEP still insists on continuing operations as before.

But it is believed that there will probably be talks between the Thai government and Western governments that have tried to call on various countries. The whole world, including Thailand, joins in boycotting the Burmese military government.

The reason that the Thai authorities give to western countries in this matter is that In order to maintain the energy stability of Thailand and Burma, which affects the lives of the people of both countries.

It did not affect the Burmese military government alone.

The Yadana gas field is located in the Gulf of Martaban. Its gas production rate is 6 billion cubic meters per year.

70 percent of the gas is sent to Thailand and 30 percent to MOGE for use in Myanmar.

MOGE’s units were seized by the military government after the 2021 coup.

In fact, Chevron has already announced since January 2022 that it will withdraw its operations from Myanmar.

Later in February last year The energy giant has also agreed to sell assets there. Including the stake in the Yadana gas field.

But the deal was canceled until last week’s announcement.

The non-profit activist group Justice for Myanmar said Chevron had to withdraw because of continued pressure from civil society.

For the reason that The fact that the company sends revenue from the gas project to the Myanmar military government becomes a conduit for the military dictatorship.

Chevron claims the decision to withdraw was made with “Responsible, orderly and safe, in accordance with international law and trade sanctions.

Back in the days after the coup, Chevron and TotalEnergies A French energy consortium was one of the project partners at the time. Announcement to immediately stop receiving money from the Yadana business to prevent funds from both companies from leaking to support the coup junta.

Before TotalEnergies will withdraw fully in 2022

Chevron is gradually selling assets. Continuously withdraw from the project since 2021

Before last Monday, April 8th Chevron will officially announce its withdrawal from Yadana. Along with announcing the transfer of 41.1% of shares to PTT Exploration and Production Public Company Limited or PTTEP of Thailand.

This transfer of shares makes PTTEP becomes the major shareholder of the Yadana project and a partner in the only project of the Myanmar military government. They hold a total of 62.96% while MOGE holds 37.04%.

Analysts consider PTTEP’s (Yadana + Zawtika) total Myanmar activities to account for about 8% of the Thai state-owned enterprise’s total sales.

The Yadana Project is a natural gas production field located in the Gulf of Martaban, Andaman Sea, Myanmar, approximately 60 kilometers from the nearest coast.

It was initially a collaboration between local organizations and Western oil companies to develop land-based gas infrastructure and pipelines.

Including drilling rigs and subsea gas pipeline systems.

Natural gas was first discovered in the area in 1980, and development of the Yadana gas field began in 1992.

It first began producing gas for use in Myanmar in 2001.

At the beginning Total was the operator. Its duty is to develop gas production fields and transport gas to the Thai-Myanmar border. Under a joint venture with 3 other companies, with the shareholding proportions as follows:

Total holds 31.23% of shares, Unocal holds 28.26%, PTTEP holds 25.5% and Myanmar Oil and Gas Enterprise holds 15%.

This project is an important gas field. Used to produce electricity in Myanmar, 30% of the amount produced

The other 70% is sent to Thailand. To be used to produce electricity in the western region of Thailand.

This amount represents 10-15% of natural gas demand in Thailand.

This project has a production volume of 1.8% of PTTEP’s total production capacity, accounting for 3% of total revenue. and make a profit equivalent to 6% of the total profit

Meanwhile, PTTEP has a total of 3 projects in Myanmar, consisting of Zawtika, Yadana and Yetagun, with investment proportions of 80%, 25% and 19%, respectively.

According to the agreement, in the event that any joint venture partners withdraw from the project. The shareholding proportion will be distributed equally to the remaining shareholders.

Until today, only Thai state enterprises and the Myanmar government remain in this project.

Especially if peace can be sought quickly in Burma. The difficulties affecting Thailand will be alleviated that much faster.

Offering to act as a “mediator” to mediate for all parties to find a joint negotiation in Burma is therefore becoming more and more urgent.