Woodside puts Myanmar operations on hold
Mar 1, 2021 â 1.15pm
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Investors have reacted calmly to Woodside Petroleumâs decision to reduce its presence in troubled Myanmar and to put future planning âunder reviewâ, reflecting the limited value attributed to its gas exploration activities there despite demand for gas to offset fields in decline.
Woodside, one of the largest holders of offshore acreage in Myanmar, said during the weekend it was reducing its presence in the country, amid increasing concern at events since the army seized power on February 1.
A three-well drilling program off the coast will be completed and the exploration drilling crew pulled out.
Myanmar coup and impact on oil and gas industry
Following the military coup in Myanmar on Monday, February 1st, Wood Mackenzie and Verisk Maplecroft experts weigh in on what this means for the oil and gas industry.
Wood Mackenzie research associate Saloni Kapoor said: “We estimate that new upstream projects worth US$2 billion up until 2030 are yet to take final investment decision, including the A6 project which now risks further delay.
“Key developments such as PTTEP’s Block M9 (Zawtika) and Woodside’s Block A6 account for around 40% of the country’s expected supply until 2030. Incremental phases at Zawtika will provide upside to Myanmar’s energy mix, but if A6 does not progress as planned, an estimated 2 tcf of gas supply is threatened. This supply is critical to make up for declining volumes from legacy fields.
4 February 2021 10:52 GMT Updated 4 February 2021 10:52 GMT in Dubai
This week’s military coup in Myanmar could have a longer-term impact on the nation’s energy security if key gas field developments do not progress as scheduled, according to a report.
Projects such as
PTTEP’s phased Block M-9 (Zawtika) and Woodside Petroleum’s Block A6 are forecast to account for around 40% of the country’s expected supply until 2030.
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According to Saloni Kapoor, a research associate with consultancy consultant Wood Mackenzie, incremental phases at Zawtika will provide upside to Myanmar’s energy mix , but an estimated 2 trillion cubic feet of gas supply is threatened if A6 does not progress as planned.