[Myanmar] Yadana

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escveritas
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[Myanmar] Yadana

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DORIS has performed the FEED, the Call For Tender and early Detailed Engineering for the MCP platform of Yadana

The MP Compression Platform (MCP) is connected by bridge to the existing Production Platform (PP) and to the future LCP Platform.

The objective of MCP is to maintain the Gas Sales Production whileWellhead Flowing Pressure reduces (reservoir specificity).

SERVICES PROVIDED BY DORIS:
Project Management & Coordination, Certification by third party
Site Survey of existing facilities (Bridge supports, Tie-in points, Control System & Telecoms system Integration…)
Basic Engineering studies of MCP, Bridge MCP/PP and modifications/integration within the existing Yadana facilities (2006)
CFT and Contract Documents preparation for Turbo-Compressor Packages
CFT’s preparation for EPSCC & TI
Assistance to COMPANY for Clarification of CFT’s
FEED verification
Early Detailed with HHI

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MAIN CHARACTERISTICS:
Topsides: 2 Modules over Module Support Frame (MSF)
Substructure: 4 Legs Jacket / 4 driven Piles
MCP platform weight : 7500 t
Bridge linked to existing Production Platform( PP)
Provision for future LCP (Low Pressure Compression)
2 Turbo-Compression Trains (one per Module) with dedicated scrubbers & aero-coolers, fed from fuel gas.
Technical Rooms (Electrical, Instrumental, HVAC, workshop)
Other Main Equipment: Emergency Diesel Generator, Electro-hydraulic Pedestal Crane, Fuel Gas Package, Air Compressor Package, Nitrogen Package.
50,000 manhours
Project Management, FEED, Early Detailed Engineering

Gas Production in Myanmar: Total's Current Position

Gas production from Yadana Blocks M5 and M6 (approximately 8 billion cubic meters a year) currently supplies half of all gas consumed by Myanmar and some 15% of gas consumed by neighboring Thailand. Total is pursuing its investment in gas exploration to continue to meet local energy needs and support Myanmar's growth in the years to come.

It Started With Yadana

The Yadana gas field, located in the Andaman Sea approximately 60 kilometers offshore, was discovered by state-owned Myanma Oil and Gas Enterprise (MOGE) in 1982. As Myanmar's oil industry was still closed to foreign investment at the time, MOGE lacked the technical and financial resources to develop it. That changed in the late 1980s, when Myanmar decided to call on international companies to develop its hydrocarbon resources. Total was selected and set up Total E&P Myanmar. Then in July 1992, the subsidiary entered into a contract with MOGE that divided the project into three phases:
  • A technical survey of the field to determine whether development would be economically feasible and the search for a long-term purchaser for the gas.
  • Design and construction of the gas production facilities and transmission infrastructure.
  • Gas production by the partners, and transmission by Moattama Gas Transportation Company (MGTC), which the partners set up to build and operate the pipeline.
Construction to Production

In the preliminary phase, the field's reserves were reevaluated at 5,300 billion cubic feet (150 billion cubic meters). Then in 1994 and 1995, after this amount was deemed sufficient to make development economically feasible:
  • Commercial negotiations were concluded with the gas purchaser, the state-owned Petroleum Authority of Thailand (PTT).
  • The MOGE-Total partnership was widened to include Unocal (now Chevron) and the Petroleum Authority of Thailand Exploration & Production (PTTEP).
  • A decision was made to develop both the Yadana field, comprising several platforms for wells, production, living quarters and compression, and the pipeline, made up of a 346 kilometer subsea section to carry the gas to the shore and a 63 kilometer onshore section running to the Thai border.
Production began in 1998 after three and a half years of work and a significant amount of investment. Today, a new pipeline to Yangon ensures that a quarter of production, or around 2 billion cubic meters a year, is supplied to Myanmar's domestic market, with the remainder exported to Thailand.

Exploration Continues

In 2014, further large-scale works began on Blocks M5 and M6 of the Yadana complex with the aim of developing the Badamyar field and installing an additional compression platform. This will allow the Yadana consortium to maintain plateau production until well after 2020.

Total E&P Myanmar is also actively pursuing exploration activities beyond Blocks M5 and M6. In February 2015, it signed an exploration contract for deep offshore Block YWB (100%) after successfully bidding in the Myanmar government's 2013 call for tenders. In summer 2015, it acquired a 40% interest in offshore Block A6.

Benefiting Myanmar and its Inhabitants

Gas production not only generates energy and financial resources, it also creates jobs and spurs social progress for local communities. Some 2,500 people were employed during the construction of the gas facilities and today the project provides employment for more than 1,000 people, including over 300 direct employees. More than 85% of these jobs are filled by Myanmar nationals.

A significant emphasis has also been placed on training. Each year 3,000 days of training are provided, and a technical training center has been set up for local technicians and operators.

Total also offers all of its employees insurance, pension and benefits packages that far exceed local practices and gives them access to employee dialogue forums such as employee representative elections and the employee survey. These social measures for the direct benefit of Total's employees are backed by a broader CSR program aimed at the local community, which has been in place since operations kicked off.

Myanmar Admitted as an EITI Candidate

Myanmar committed to joining the Extractive Industry Transparency Initiative (EITI) in late 2012 and was admitted as a candidate country by the International EITI Board in July 2014. The country then hosted the following meeting of the International Board in October 2014 in Nay Pi Taw, where participants visited the Yadana pipeline area and took stock of the CSR initiatives first-hand. The next stage for Myanmar is to prepare its first EITI report, following which it should become a member of the organization in late 2015. From the very start of discussions, Total E&P Myanmar has been fully committed to the implementation and success of this initiative through its local and international involvement. The Total Group also actively supports the plan.
escveritas
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Re: [Myanmar] Yadana

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TotalEnergies withdraws from Myanmar

Paris, January 21st, 2022 – Following the coup of 1st February 2021 in Myanmar, TotalEnergies has firmly condemned on several occasions the abuses and human rights violations taking place there. Since then, our Company's decisions have been guided by clear principles: to halt all our ongoing projects, but to continue to produce gas from the Yadana field, which is essential for supplying electricity to the local Burmese and Thai population, to protect our employees from the risk of criminal prosecution or forced labour, and, insofar as is materially and legally possible, to limit the financial flows received by the national oil company MOGE.

Despite the actions taken, TotalEnergies has not been able to meet the expectations of many stakeholders (shareholders, international and Burmese civil society organisations), who are calling to stop the revenues going to the Burmese state through the state-owned company MOGE from the Yadana field production. In fact, this is materially impossible for TotalEnergies, as most of the payments for the sale of the gas are made directly by the Thai company PTT, the buyer of the exported gas. TotalEnergies has also approached the French authorities to consider putting in place targeted sanctions that would confine all the financial flows of the various partners to escrow accounts without shutting down the gas production. TotalEnergies has not identified any means for doing so.

While our Company considers that its presence in a country allows it to promote its values, including outside its direct sphere of operations, the situation, in terms of human rights and more generally the rule of law, which have kept worsening in Myanmar since the coup of February 2021, has led us to reassess the situation and no longer allows TotalEnergies to make a sufficiently positive contribution in the country.

As a result, TotalEnergies has decided to initiate the contractual process of withdrawing from the Yadana field and from MGTC in Myanmar, both as operator and as shareholder, without any financial compensation for TotalEnergies. This withdrawal has been notified today to TotalEnergies' partners in Yadana and MGTC and will be effective at the latest at the expiry of the 6-month contractual period. The agreements also stipulate that, in the event of withdrawal, TotalEnergies' interests will be shared between the current partners, unless they object to such allocation, and that the role of operator will be taken over by one of the partners.

During this notice period, TotalEnergies will continue to act as a responsible operator in order to ensure the continuity of gas deliveries for the benefit of the population. TotalEnergies has indicated to its partners its willingness to ease the transition to the new operator and facilitate the transfer of staff who so wish.
escveritas
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Re: [Myanmar] Yadana

Unread post by escveritas »

Following TotalEnergies announcement to withdraw from the Yadana project as the operator and joint venture partner, PTT Exploration and Production Public Company Limited (PTTEP) has carefully considered status of the field that placing utmost importance on continuity in gas production and preventing disruption to energy demand since Yadana project is a pivotal source of natural gas supply to the livelihood of the people in both Myanmar and Thailand.

ASEAN countries have been cooperating and supporting each other in various aspects, working hand in hand in a way that will help develop economies and improve quality of lives of their people. Developing Energy Industry for both Thailand and Myanmar, particularly in the area of petroleum exploration and production has been one of the collaborations over the past 30 years. The existence of reliable source of energy to serve the domestic consumptions is essential for improving people’s standard of living and driving the country economy. To this regard, natural gas from the Gulf of Moattama, Myanmar has been supplied to generate electricity for both households and industrial sectors in Thailand and Myanmar, covering medical service and public health, education, transportation, communication and telecommunication.

Yadana project currently produces natural gas at the rate of approximately 770 million standard cubic feet per day (MMSCFD), approximately 220 MMSCFD, accounted for 50% of the country’s gas demand, is inevitably supplied for electricity generation in Myanmar. Thailand also relies on this source of energy as around 550 MMSCFD of gas from the field is fed to 12 various power plants for electricity generation, serving demand of 11 million people living in the west and central part of Thailand. The amount of this imported gas contributed to about 11% of Thailand’s gas demand.

Taking part in the development of energy sector in Myanmar including in the Yadana project, PTTEP has directly experienced the great significance of the natural gas supply towards improving the well-being of the people in both countries.

After the decision of TotalEnergies to withdraw from Yadana project, PTTEP has thoroughly considered to take a step as the successor operator in order to ensure the no interruption of natural gas supply and to reinforce long-term energy security especially in the current circumstances, where other forms of energy are not primary source for electricity generation.

Considering the current situation in Myanmar and certain timeframe for the change of operator, PTTEP as a capable company with the operation familiarities of the Yadana field will help securing the continuity of natural gas supply and, more importantly, safe operation.

The nomination of PTTEPI as the new operator has been appointed by the remaining partners in this project. The operatorship transfer, which is expected the completion on July 20, 2022, requires a full support from TotalEnergies to assure seamless transition and production continuity with safety standard.

Under the Production Operating Agreement (POA), TotalEnergies’ share will be allocated proportionately to the remaining joint venture partners with no commercial value. After the effective date of TotalEnergies’ withdrawal, PTTEPI will hold 37.0842% participating interest, while a subsidiary of Chevron, Unocal Myanmar Offshore Company Limited will hold 41.1016%, which is the largest participating interest in the project.

Throughout 3 decades of its operation, PTTEP always put the importance on maintaining energy security and conduct its business by adhering to the principle of good corporate governance in every country the company operates. The company recognizes that equitable access to energy is a fundamental human right that all people are entitled to.
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