Woodside withdraws from Myanmar

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Australia’s Woodside Petroleum Ltd. has announced plans to withdraw from its interests in Myanmar after operating in the country for almost ten years.

The company holds a 40% participating interest in the A-6 Joint Venture as joint operator and participating interests in exploration permits AD-1 and AD-8.

“Woodside has been a responsible foreign investor in Myanmar since 2013 with our conduct guided by the UN Guiding Principles on Business and Human Rights and other relevant international standards,” said Woodside CEO Meg O’Neill in an ASX Announcement.

“Given the ongoing situation in Myanmar we can no longer contemplate Woodside’s participation in the development of the A-6 gas resources, nor other future activities in-country.”

Adertisement

Last year, Woodside placed all Myanmar business decisions under review following the State of Emergency declared in February 2021.

After terminating a production sharing contract with the state-owned oil and gas enterprise MOGE, the company now revealed that it will abandon all other licences in Myanmar.

“Woodside will now commence arrangements to formally exit Blocks AD-1 and AD-8, the A-6 Joint Venture and the A-6 production sharing contract (PSC) held with the Myanmar Oil and Gas Enterprise (MOGE),” reads the ASX Announcement.

“The non-cash expense associated with the decision to withdraw from Blocks A-6 and AD-1 is expected to impact 2021 net profit after tax (NPAT) by approximately US$138 million. This is in addition to the US$71 million exploration and evaluation expense for Block AD-7 disclosed in Woodside’s Fourth Quarter Report on 20 January 2022”

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