In the notification letter to PTTEP, TotalEnergies said that it will fully support the transition to the new operator of the project.
PTTEP did not confirm that it will become the new operator, but this is the most likely option, as project partner Chevron also plans to exit Myanmar.
The state-backed Thai upstream player will be left with the biggest shareholding once the IOCs leave the project.
TotalEnergies has operated the major Yadana gas field, covering Blocks M5 and M6, offshore Myanmar since 1992 with a 31.24% interest, alongside partners Chevron (28.26%), Thailand’s PTTEP (25.5%), and Myanmar’s state-owned MOGE (15%).
An industry source that has worked in Myanmar said:
- A typical joint operating agreement would provide remaining partners 30 days to decide if they too will withdraw
- After which the remaining partners participating interest would absorb the withdrawing partners by increasing pro-rata
- Post withdraw 63% PTTEP, 37% MOGE, PTT takes operatorship
- They are already operator of Zawtika in adjacent block
The remaining 200 MMSCFD is supplied for electricity generation in Myanmar, and served around 50% of gas consumption in the country, PTTEP said.
TotalEnergies and Chevron said last week that they will exit Myanmar due to the worsening situation in the Southeast Asian country, particularly concerning human rights abuses by the junta, since the military coup on 1 February 2021.