PTTEP mulls Myanmar after partners pull out
PTT Exploration and Production Plc (PTTEP) plans to announce next month its move after the withdrawal of its partners -- Total Energies and Chevron Corp -- from the Yadana gas production project in Myanmar.
Orachon Ouiyamapun, senior vice-president of PTTEP's finance division, told investors yesterday the company only received a notification letter from France-based Total Energies, but has yet to receive one from US-based Chevron.
"Our executives are looking into this issue to decide on a next move. We plan to inform the public early next month," she said.
The French and US oil giants on Jan 21 told the public that they planned to exit from the country, citing the worsening humanitarian situation following last year's coup.
Myanmar has been in chaos since the army overthrew the elected government in February last year.
Total Energies is a gas production operator, along with Chevron, PTTEP and state-owned Myanma Oil and Gas Enterprise (MOGE). They jointly invested in the Yadana gas project, located off Myanmar's southwestern coast, and Moattama Gas Transportation Company to carry gas from the field to Myanmar's Yangon and Thailand.
Total Energies holds a 31.24% share, with a 28.3% stake belonging to Chevron. PTTEP holds a 25.5% share while the remainder belongs to MOGE.
After withdrawal, Total Energies' interests will be shared between the current partners, unless they object to such an allocation, and that the role of operator will be taken over by one of them, according to past agreements.
Ms Orachon said PTTEP plans to increase its sales by 12% this year to 467 kilobarrel of oil equivalent per day (KBOED), up from an average 416 KBOED of last year.