Production levels at Myanmar’s Yetagun gas field declining fast

Malaysian oil and gas company Petronas has started reducing the number of workers at the Yetagun offshore gas field in Myanmar since the first week of September, an employee of the company said.

The employee, who spoke on condition of anonymity, said the number of workers at the field will also be reduced in December as well as in March, 2021. Compensation has been arranged in accordance with the country’s labour laws. At its peak, the Yetagun field produced nearly 300 million standard cubic feet (mmscf) per day. It now produces just 60 mmscf per day.

The government expects the field to continue yielding gas at current levels before running out by 2023, when production is expected stop, said U Kyaw Nyan Tun, a director of the MOGE.

The Yetagun gas field was first discovered in 1992 and commercial production started in 2000.
Petronas holds a 40.9 percent stake and operates the field. The other working partners in the field include Myanmar Oil and Gas Enterprise (MOGE) with a 20.5pc stake, Thailand’s PTTEP International with a 19.3pc stake and Nippon Oil Exploration (Myanmar) with a 19.3pc stake.

All the gas produced from Yetagun is exported to Thailand with no domestic allocation. The Yetagun project produced 44,983 mmscf of gas in fiscal 2018-19 fiscal year, and production is expected to fall to 32,820 mmscf in fiscal 2019-20.

Although Yetagun produces less gas than some of Myanmar’s other fields, the quality of gas produced is higher, allowing the country to charge more.

The field has produced around 2.2 trillion cubic feet of gas and generated a total of US$19 billion in revenues for Myanmar since its inception up until 2018, U Than Tun, a former MOGE advisor, said.

According to the Yetagun project agreement, gas blocks and infrastructure will be handed over to the State once production ends. A decision will be made at that point on whether to decommission the fields, which could cost millions of dollars, according to the Ministry of Electricity and Energy.

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Source : Myanmar Times

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