A spokesperson for the US energy company Chevron has confirmed its departure from the Yadana natural gas field in Myanmar, over two years after denouncing violence and human rights violations in the military-led nation and declaring its exit.
Instead of being sold, Chevron’s 41.1% share in the gas field was reallocated to the existing stakeholders, namely Thailand’s PTT Exploration and Production and the state-owned Myanma Oil and Gas Enterprise (MOGE).
PTTEP, the field operator, revealed on Friday that its ownership in Yadana has risen to 62.96% following the divestment by Unocal Myanmar Offshore Co Ltd, a subsidiary of Chevron.
The Chevron spokesperson stated, “The withdrawal reflects our decision to depart Myanmar in a methodical and orderly manner in response to the events following the February 2021 coup and the ongoing humanitarian crisis.”
Myanmar has been facing turmoil since the military overthrew the democratically elected government in 2021. The crackdown on dissent has led to a nationwide resistance movement supported by various ethnic minority groups.
Situated in the Gulf of Martaban, the Yadana field has been generating approximately 6 billion cubic meters of gas annually, with 70% exported to Thailand for energy purposes and about 30% supplied domestically to MOGE.
After the 2021 coup, MOGE was taken over by the junta.
In January 2022, Chevron announced its intention to exit Myanmar and in February 2023 disclosed plans to sell its assets there, including the stake in the Yadana field. However, the company has now opted for withdrawal.
Human rights organizations and UN experts have accused Myanmar’s military of committing atrocities against civilians in its campaign to suppress the opposition. The junta claims to be combating “terrorists” and has dismissed international calls for cessation of hostilities.
In efforts to cut off funding to the junta, in 2021, the French oil and gas company TotalEnergies and Chevron suspended payments from Yadana that would have benefited the junta, earning praise from pro-democracy advocates. TotalEnergies exited in 2022.
Justice for Myanmar, a non-governmental organization, mentioned that Chevron’s departure came after persistent pressure from civil society regarding payments from the gas venture to the Myanmar junta.
Chevron assured that its exit from Myanmar was conducted in a responsible, structured, and safe manner, in compliance with international laws and trade sanctions.
PTTEP, in a notification to the Stock Exchange of Thailand, emphasized the strategic significance of the Yadana project in ensuring energy security for both Thailand and Myanmar.
“As the project operator, PTTEP will continue gas production from the field to meet energy demands and uphold energy security in both Thailand and Myanmar.”
In a bid to weaken the military junta, President Joe Biden’s administration imposed sanctions in November targeting specific financial services conducted by Americans with MOGE, marking the first direct action against the enterprise.
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