Australia’s Woodside joins exodus from Myanmar

Australian independent Woodside Petroleum is withdrawing from Myanmar (Burma), following the exit of Chevron and TotalEnergies because of the worsening situation in the country.

Woodside will start arrangements to formally exit the upstream offshore blocks AD-1 and AD-8, the A-6 joint venture and the A-6 production-sharing contract held with state-owned Myanmar Oil and Gas Enterprise. Woodside holds a 40pc participating interest in A-6 as joint operator and participating interests in exploration permits AD-1 and AD-8.

The withdrawal from A-6 and AD-1 is expected to affect 2021 profit after tax by around $138mn, Woodside said. This is in addition to the $71mn exploration and evaluation expense for block AD-7 disclosed in Woodside's October-December production report released last week.

Woodside had hoped to develop the A-6 gas resources with its joint venture participants and deliver much-needed energy to Myanmar, but there was no longer a viable option for it to continue, Woodside chief executive Meg O'Neill said. This follows a warning of sanctions risks on Myanmar by the US government.

Woodside had previously announced that it was placing all Myanmar business decisions under review following the country's state of emergency declared in February 2021. It last year relinquished exploration permits covering offshore blocks AD-2, AD-5 and A-4 and started withdrawing from blocks AD-6, AD-7 and A-7.

The company has been in Myanmar since 2013 and had ambitions of exporting gas from two offshore discoveries in the Rakhine basin to China. The exit comes ahead of the expected completion during April-June of its merger with the petroleum arm of resources firm BHP that will provide Woodside with exposure to offshore US, Mexico, Trinidad and Tobago, as well as the UK.

By Kevin Morrison

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