Petronas Declares Force Majeure on Yetagun Development
Production has been hampered by subsurface issues most of the year. Gas production fell below the technical threshold of the offshore gas processing plant.
Subsurface woes that have plagued Petronas’ Yetagun development since the beginning of the year have prompted the Malaysian state-run oil company to declare force majeure and temporarily cease production from the field. Yetagun is in the Andaman Sea, offshore Myanmar, in Blocks M12, M13, and M14.
According to Petronas subsidiary PC Myanmar Ltd. (PCML), following challenges in well deliverability, gas production fell below the technical threshold of the offshore gas processing plant. The operator did not give a timetable for the return of production from Yetagun, adding only that it will be halted until further notice.
“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,” said PCML country head Liau Min Hoe. “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.”
Yetagun began production in April 2000, delivering gas to Thailand through a 277-km pipeline.
PCML has been the operator of the Yetagun Gas Project since 2003, where it holds 40.9% participating interest together with its affiliate; Myanma Oil and Gas Enterprise holds 20.5%, Nippon Oil Exploration (Myanmar) Ltd. 19.3%, and PTTEP International Ltd. 19.3%.