PETRONAS’ Upstream Operations Declares Force Majeure on Its Yetagun Field
PC Myanmar (Hong Kong) Limited (PCML), a subsidiary of PETRONAS, has declared Force Majeure (FM) on its Yetagun field on 1 April 2021 due to depletion of gas production at the field, located in the Andaman Sea, offshore Myanmar, in Blocks M12, M13 and M14.
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. PCML has temporarily ceased production at the Yetagun field until further notice.
PCML Country Head, Liau Min Hoe 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,” he added.
PCML has been the operator of the Yetagun Gas Project since 2003, where it holds 40.9% participating interest together with its affiliate, while Myanma Oil and Gas Enterprise holds 20.5%, Nippon Oil Exploration (Myanmar), Limited holds 19.3% and PTTEP International Limited holds the remaining 19.3%.
PCML remains committed to its project in Yetagun and is taking all necessary measures to resume production as soon as possible.