Petronas subsidiary PC Myanmar (PCML) has declared force majeure on its Yetagun field offshore Myanmar due to depletion of gas production at the field.
The Malaysian company said the decision was made following challenges in the wells deliverability that resulted in the production rate dropping below the technical threshold of the offshore gas processing plant. Production at the field has been ceased until further notice.
Liau Min Hoe, country head of PCML, 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.”
PCML has been the operator of the Yetagun Gas Project since 2003, and holds a 40.9% participating interest with Myanmar Oil and Gas Enterprise holding 20.5%, Nippon Oil Exploration 19.3% and PTTEP 19.3%.
“PCML remains committed to its project in Yetagun and is taking all necessary measures to resume production as soon as possible,” the company stated.
