Chevron Exits Myanmar's Yadana Gas Field: Report

Chevron Corporation CVX reportedly has left the Yadana natural gas field in Myanmar.

This has happened over two years after the company condemned violence and human rights abuses there and announced it would leave, reported Reuters.

Chevron has redistributed its 41.1% stake in the gas field to the remaining shareholders – Thailand’s PTT Exploration and Production and state-owned Myanma Oil and Gas Enterprise (MOGE).

On Friday, PTTEP, the gas field operator, said its stake in Yadana had increased to 62.96%, as per the report.

The Yadana field, which is located in the Gulf of Martaban, has produced around 6 billion cubic meters (212 billion cubic feet) per year of gas, 70% of which has been exported to Thailand and about 30% supplied for domestic use to MOGE.

“The withdrawal gives effect to our intention to exit Myanmar in a controlled and orderly manner, following the February 2021 coup, and ongoing humanitarian crisis,” the report quoted a Chevron spokesperson.

As per the report, Myanmar has been in crisis since the army overthrew the elected government in 2021, and a crackdown on dissidents has since given rise to a nationwide resistance movement backed by several ethnic minority armies.

In January 2022, Chevron said it would exit Myanmar, and in February 2023, it said it had agreed to sell its assets there, including its stake in the Yadana gas field, but instead has withdrawn.

In 2021, French oil and gas group TotalEnergies SE TTE and Chevron suspended some payments from Yadana that would have reached Myanmar’s junta, earning praise from pro-democracy activists. TotalEnergies withdrew in 2022, the report further noted.

Also Read: Chevron’s Collaborates With ION Clean Energy, Marks A Milestone In Carbon Capture Advancement

Chevron said it has conducted its “exit from Myanmar in a responsible, orderly and safe manner, in accordance with international law and trade sanctions.”

Investors can gain exposure to the stock via SPDR Select Sector Fund – Energy Select Sector XLE and IShares U.S. Energy ETF IYE.

Also Read: Chevron JV Launches New Drilling Campaign In Venezuela: Report

Price Action: CVX shares are up 0.17% at $161.54 premarket on the last check Tuesday. 

Photo by Jonathan Weiss on Shutterstock