Australia's Woodside to exit Myanmar, withdrawal to impact 2021 profit

Australian oil and gas producer Woodside will withdraw from its interests in Myanmar due to the country's deteriorating human rights situation following a military coup in February last year, it said in a statement Jan. 27.

The move follows Woodside previously placing Myanmar business decisions under review after Myanmar's February 2021 declaration of a State of Emergency.

The company said it 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 held with the Myanmar Oil and Gas Enterprise.

Woodside completed the relinquishment of other exploration permits in Myanmar last year.

Woodside's statement follows Paris-based TotalEnergies announcing Jan. 21 a decision to withdraw from the Southeast Asian nation also because of the human rights abuses.

"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," Woodside's CEO Meg O'Neill said. "Given the ongoing situation in Myanmar we can no longer contemplate Woodside's participation in the development of the A-6 gas resource, nor other future activities in the country."

Woodside said the non-cash expense associated with the withdrawal from Blocks A-6 and AD-1 is expected to impact 2021 net profit after tax by about $138 million. This is in addition to a $71 million exploration and evaluation expense for Block AD-7, as announced Jan. 20 by Woodside.

The offshore Rakhine Basin A-6 development included 10-deep water wells. The gas had been intended to be exported by a 265 km pipeline to a riser platform near the existing Yadana platform complex. It was targeting delivery of gas to Myanmar and Thailand.