KUALA LUMPUR – Petroleum Nasional Bhd’s subsidiary, PC Myanmar (HK) Ltd (PCML), has declared force majeure on its Yetagun field yesterday until further notice.
Petronas in a statement said this is due to depletion of gas production at the field, located in the Andaman Sea, offshore Myanmar, in Blocks M12, M13 and M14.
It said the decision is made following challenges in the wells deliverability, which resulted in the production rate dropping below the technical threshold of the offshore gas processing plant.
PCML country head Liau Min Hoe said prior to the cessation of production, the 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, and has further deteriorated recently. Continuing to produce at a low rate will impose significant risks to the integrity of our assets and safety of our people.
“As a responsible operator, we have to temporarily cease production and declare force majeure.
“We have put in place an intervention plan to mitigate the matter and informed the host authority, our partners and gas buyers of our decision.”
PCML remains committed to its project in Yetagun, and is taking all necessary measures to resume production as soon as possible.
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 holds 19.3% and PTTEP International Ltd holds 19.3%. – Bernama, April 2, 2021
