Thailand Seeks Control of Myanmar Gas Project After Total Exit
Thailand Seeks Control of Myanmar Gas Project After Total Exit
(Bloomberg) -- PTT Pcl, Thailand’s state-controlled energy company, is bidding to take control of Myanmar’s Yadana gas field after TotalEnergies SE and Chevron Corp. exited the country to protest against the junta’s continued violence against civilians since the military coup.
PTT Exploration and Production Pcl, a unit of PTT, has offered to acquire the combined 59.5% stake held by TotalEnergies and Chevron, according to Zaw Min Tun, the lead spokesman for the State Administration Council. Several local firms are also keen to become part of the project and discussions have begun between the government, PTTEP and other prospective buyers, he said.
PTTEP “has offered us that they’re willing to take over all shares of Total and Chevron. But we’re not sure whether or not we should allow it to acquire all these shares,” Zaw Min Tun said on Thursday.
The Thai company is shaping up to become one of the beneficiaries with Western companies exiting the oil and gas sector amid concerns of new sanctions. While the U.S. has recently slapped new sanctions of certain entities and individuals linked to the junta, it has stopped short of going after oil and gas companies in Myanmar that is widely seen as providing economic resources to the military regime.
TotalEnergies, which has been the operator of the Yadana gas field for about three decades and held a 31.2% stake, said last month it was withdrawing from the project and MGTC pipeline venture without claiming any financial compensation. While Chevron said it too will pull out of the projects, PTTEP said it will carefully evaluate its options.
Unocal Myanmar Offshore Co., a Chevron affiliate held 28.3% participating interest in Yadana project with PTTEP holding 25.5%, and Myanma Oil and Gas Enterprise the remaining 15%, according to an exchange filing by the Thai company.
“PTTEP is carefully considering potential directions of the Yadana project and MGTC whereby putting the utmost importance for the energy security of Thailand and Myanmar and preventing impacts on energy demand to the livelihood of people in both countries,” the company reiterated in a statement Thursday.
About 70% of the 6 billion cubic meters per year of gas produced at Yadana is exported to Thailand through the MGTC pipeline with the rest being sold to users in Myanmar, according to Total.
“We expect to reach a concrete decision within this month,” Zaw Min Tun said, adding PTT executives were already in Myanmar to discuss its proposal with officials of the Ministry of Electricity and Energy.
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