Statement 3: Change of operator in the Yadana project in Myanmar
14 Mar 2022
Following TotalEnergies announcement to withdraw from the Yadana project as the operator and joint venture partner, PTT Exploration and Production Public Company Limited (PTTEP) has carefully considered status of the field that placing utmost importance on continuity in gas production and preventing disruption to energy demand since Yadana project is a pivotal source of natural gas supply to the livelihood of the people in both Myanmar and Thailand.
ASEAN countries have been cooperating and supporting each other in various aspects, working hand in hand in a way that will help develop economies and improve quality of lives of their people. Developing Energy Industry for both Thailand and Myanmar, particularly in the area of petroleum exploration and production has been one of the collaborations over the past 30 years. The existence of reliable source of energy to serve the domestic consumptions is essential for improving people’s standard of living and driving the country economy. To this regard, natural gas from the Gulf of Moattama, Myanmar has been supplied to generate electricity for both households and industrial sectors in Thailand and Myanmar, covering medical service and public health, education, transportation, communication and telecommunication.
Yadana project currently produces natural gas at the rate of approximately 770 million standard cubic feet per day (MMSCFD), approximately 220 MMSCFD, accounted for 50% of the country’s gas demand, is inevitably supplied for electricity generation in Myanmar. Thailand also relies on this source of energy as around 550 MMSCFD of gas from the field is fed to 12 various power plants for electricity generation, serving demand of 11 million people living in the west and central part of Thailand. The amount of this imported gas contributed to about 11% of Thailand’s gas demand.
Taking part in the development of energy sector in Myanmar including in the Yadana project, PTTEP has directly experienced the great significance of the natural gas supply towards improving the well-being of the people in both countries.
After the decision of TotalEnergies to withdraw from Yadana project, PTTEP has thoroughly considered to take a step as the successor operator in order to ensure the no interruption of natural gas supply and to reinforce long-term energy security especially in the current circumstances, where other forms of energy are not primary source for electricity generation.
Considering the current situation in Myanmar and certain timeframe for the change of operator, PTTEP as 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.
The nomination of PTTEPI as the new operator has been appointed by the remaining partners in this project. The operatorship transfer, which is expected the completion on July 20, 2022, requires a full support from TotalEnergies to assure seamless transition and production continuity with safety standard.
Under the Production Operating Agreement (POA), TotalEnergies’ share will be allocated proportionately to the remaining joint venture partners with no commercial value. After the effective date of TotalEnergies’ withdrawal, PTTEPI will hold 37.0842% participating interest, while a subsidiary of Chevron, Unocal Myanmar Offshore Company Limited will hold 41.1016%, which is the largest participating interest in the project.
Throughout 3 decades of its operation, PTTEP always put the importance on maintaining energy security and conduct its business by adhering to the principle of good corporate governance in every country the company operates. The company recognizes that equitable access to energy is a fundamental human right that all people are entitled to.
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