PTTEP nominated as replacement operator of offshore Myanmar Yadana project

Offshore staff

BANGKOK, Thailand – The partners in the Yadana gas production project offshore Myanmar have nominated PTT Exploration and Production Public Company (PTTEP) to succeed TotalEnergies as operator.

TotalEnergies announced its intention to withdraw from the project citing human rights abuses and the deteriorating rule of law in Myanmar since the military coup of February 2021.

PTTEP, one of the company’s partners, said it had carefully considered the status of the Yadana field, and had concluded that continuity in gas production and preventing disruption to energy demand was vital since the field is a “pivotal source of gas supply to the livelihood of people in both Myanmar and Thailand.”

Currently Yadana produces around 770 MMscf/d. Thailand relies on around 550 MMcf/d of the production for use in 12 power plants for electricity generation, serving 11 million people living in the west and central part of Thailand.

PTTEP said that being “a capable company with the operation familiarities of the Yadana field will help securing the continuity of natural gas supply and, more importantly, safe operation.”

Transfer of operatorship should complete on July 20, 2022, and requires support from TotalEnergies to ensure a seamless transition and production continuity, PTTEP added

Under the Production Operating Agreement, TotalEnergies’ share will be allocated proportionately to the remaining joint venture partners. Following its withdrawal, PTTEPI will have a 37.0842% interest, with Chevron subsidiary Unocal Myanmar Offshore Company the largest shareholder (41.1016%).

3/14/2022