Petronas has revealed that its subsidiary, PC Myanmar (Hong Kong) Limited, has declared force majeure on its Yetagun field, located offshore Myanmar, “due to depletion of gas production”.
The decision was made following challenges in well deliverability that resulted in the production rate dropping below the technical threshold of the offshore gas processing plant, Petronas noted, adding that PC Myanmar (Hong Kong) Limited has temporarily ceased production at the Yetagun field until further notice.
“Prior to the cessation of production, Yetagun field was producing well below the technical turndown rate of its facilities,” PC Myanmar (Hong Kong) Limited Country Head, Liau Min Hoe, said in a company statement.
“There has been a drastic decline in production level due to subsurface challenges in the field since January 2021 and it has further deteriorated recently,” Hoe added in the statement.
“Continuing to produce at a low rate would impose significant risks to the integrity of our assets and the safety of our people. As a responsible operator, we had to temporarily cease production and declare force majeure. We have put in place an intervention plan to mitigate the matter, and have informed the host authority, our partners and gas buyer of our decision,” the PC Myanmar (Hong Kong) Limited representative went on to state.
Petronas highlighted that PC Myanmar (Hong Kong) Limited remains committed to its project in Yetagun and stated that the business is taking all necessary measures to resume production as soon as possible.
PC Myanmar (Hong Kong) Limited has been the operator of the Yetagun Gas Project since 2003, where it holds a 40.9 percent participating interest. Myanma Oil and Gas Enterprise holds a 20.5 percent stake in the project, with Nippon Oil Exploration (Myanmar) Limited and PTTEP International Limited each holding a 19.3 percent interest.
Petronas notes on its website that it has been involved in the development of Myanmar’s oil and gas industry for close to 30 years.
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