Oil & Gas

US oil and gas giant Chevron has divested its stake in Myanmar's Yadana gas field, part of its ongoing withdrawal from the country following a military coup more than two years ago. The decision, made in February 2024, reflects Chevron's view that the current political climate in Myanmar does not align with its values.

Chevron's exit from Myanmar began in early 2021 when the military seized power and detained key figures, including State Counsellor Aung San Suu Kyi. The company condemned the coup and announced its intention to withdraw from the country, citing concerns over violence and human rights abuses.

Thai exploration companies PTT Exploration and Myanmar's state-owned MOGE acquired Chevron's 41.1% stake in the Yadana field, increasing PTT Exploration's share to 62.96%. Chevron's spokesman stated that the withdrawal was part of a disciplined and orderly exit strategy from Myanmar.

Chevron's departure follows similar moves by other oil and gas companies, including TotalEnergy, which withdrew from Myanmar in July 2022 due to deteriorating economic and humanitarian conditions. The Yadana gas field, located in Martaban Bay, exports 70% of its production to Thailand, with the remaining 30% used domestically.

The military junta's control of MOGE led to sanctions from Western countries, including the European Union, for its support of the military regime. Chevron's exit is seen as a response to pressure from civil society groups to stop funding the junta-controlled company.

The Biden administration imposed sanctions on MOGE in November, part of efforts to address human rights abuses in Myanmar. Chevron's departure from Myanmar underscores the challenges faced by multinational companies operating in politically unstable regions.