Petronas said:
- The decision was made following challenges in the wells deliverability that resulted in the production rate dropping below the technical threshold of the offshore gas processing plant
- As of 1 April the company has temporarily ceased production at the Yetagun field in Blocks M12, M13 and M14, until further notice
- Petronas remains committed to its project in Yetagun and is taking all necessary measures to resume production as soon as possible
The military coup has led several upstream companies to assess whether they should activate force majeure clauses in their production-sharing contracts with the government.
Petronas’ country head, Liau Min Hoe stated:
- Prior to the cessation of production, Yetagun field was producing well below the technical turndown rate of its facilities
- 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
- State-backed Myanma Oil and Gas Enterprise (MOGE) holds a 20.5% stake
- Nippon Oil Exploration has a 19.3% share
- PTT Exploration & Production (PTTEP) holds the remaining 19.3%
