TotalEnergies cedes control in Myanmar to PTTEP
TotalEnergies has ceded control of the Yadana field in Myanmar and the MGTC pipeline that pumps its natural gas to Thai company PTTEP, the company announced on March 16.
The French major said in January it would withdraw from Myanmar, where it has worked for 30 years, over worsening human rights abuses since the country's democratically elected government was overthrown by the military in February last year. Other international majors have announced similar steps, although PTTEP is staying given that the majority of Yadana's gas flows to Thailand.
As well as assuming operatorship, PTTEP will also acquire some of TotalEnergies' 31% stake in Yadana, as will Chevron, although the US major is also preparing to leave the country. The transaction will conclude on July 20, after which PTTEP will have a 37.1% interest in the project, state-run Myanma Oil and Gas Enterprise will have 21.8% and Chevron 41.1%.
TotalEnergies is withdrawing without seeking any financial compensation for the assets. Its staff in the country are expected to be transferred to PTTEP. The withdrawal comes as TotalEnergies also faces pressure in France to divest its operations in Russia.
Yadana produces at a rate of around 770mn ft3/day, of which 220mn ft3/d goes to Myanmar, covering around half of its demand for gas in power generation. Via MGTC, the remaining 550mn ft3/d is exported to Thailand to serve 12 power plants, amounting to 11% of the country's gas demand.
In its own statement, PTTEP said that it "recognises that equitable access to energy is a fundamental human right that all people are entitled to."
"After the decision of TotalEnergies to withdraw from the Yadana project, PTTEP has thoroughly considered to take a step as the successor operator in order to ensure no interruption of natural gas supply." It described Yadana as a "pivotal source of natural gas supply to the livelihood of the people in both Myanmar and Thailand."