Petronas declares force majeure on gas field offshore Myanmar

Petronas subsidiary PC Myanmar (Hong Kong) Ltd. (PCML) has declared force majeure on the Yetagun gas field in blocks M12, M13, and M14 offshore Myanmar.

 

The decision was made following challenges in the wells deliverability which resulted in the production rate dropping below the technical threshold of the offshore gas processing plant, the company said. PCML has temporarily ceased production at the Yetagun field until further notice.

 

Liau Min Hoe, PCML Country Head, said: “Prior to the cessation of production, Yetagun field was producing well below the technical turndown rate of its facilities. 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.

 

“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 company said it remains committed to the project and is taking all necessary measures to resume production as soon as possible.

 

PCML has been the operator of the Yetagun gas project since 2003. It holds 40.9% participating interest together with its affiliate, while Myanma Oil and Gas Enterprise holds 20.5%, Nippon Oil Exploration (Myanmar), Ltd holds 19.3%, and PTTEP International Ltd holds the remaining 19.3%.

 

Source: Offshore Magazine