BANGKOK (AP) — Petronas, Malaysia’s state-owned oil and gas company, announced on Friday that it is pulling out of its stake in the Yetagun offshore natural gas project in Myanmar.
The company, through two subsidiaries, holds a 40.9% stake in the project, Petronas said in a statement issued by its headquarters in Kuala Lumpur. He said his partners include Myanma Oil & Gas Enterprise, Myanmar’s state oil company, with a 20.5% share; Japanese Nippon Oil Exploration (Myanmar) Ltd. with 19.3%; and PTTEP International Ltd. from Thailand with 19.3%.
Petronas is the latest in a series of oil companies to pull out of operations in Myanmar this year. Others include Australia’s Woodside Petroleum, France’s TotalEnergies and US-based Chevron Corp. The companies said they were pulling out over concerns about the human rights record of Myanmar’s military regime, which seized power in February last year after toppling the elected government of Aung San . Suu Kyi.
In addition to ethical concerns, economic sanctions imposed on Myanmar by the United States and other Western countries complicate business relations with Myanmar.
Petronas’ statement did not mention any political or ethical concerns for the company’s action.
“The decision was made following a thorough technical and commercial review in line with Petronas’ asset rationalization strategy for a portfolio that aligns with its growth ambitions in a changing industrial environment and accelerated energy transition,” did he declare.
The brief statement also did not specify who would take over the company’s share of the project.
Gas from the project is piped to Thailand, as is gas from another field in Myanmar, Yadana.