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KUALA LUMPUR: Petroleum Nasional Bhd’s (Petronas) subsidiary, PC Myanmar (Hong Kong) Ltd (PCML), has declared force majeure on its Yetagun field on Thursday (April 1) until further notice.
This was due to depletion of gas production at the field, located in the Andaman Sea, offshore Myanmar, in Blocks M12, M13 and M14, the national oil and gas company said in a statement.
It said 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 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 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 remains committed to its project in Yetagun and is taking all necessary measures to resume production as soon as possible, according to the statement.
PCML has been the operator of the Yetagun gas project since 2003, where it holds 40.9 per cent participating interest together with its affiliate. Myanma Oil and Gas Enterprise holds 20.5 per cent, Nippon Oil Exploration (Myanmar), Ltd holds 19.3 per cent and PTTEP International Ltd holds the remaining 19.3 per cent. -- Bernama