Yadana gas field
| Company type | Joint venture |
|---|---|
| Industry | Natural gas extraction |
| Headquarters | Myanmar |
Area served | Myanmar, Thailand |
| Products | Natural gas |
| Parent | TotalEnergies (former operator), Chevron Corporation, PTT, Myanma Oil and Gas Enterprise, PTTEP (current operator) |
The Yadana gas field is an offshore natural gas reserve situated in the Andaman Sea, approximately offshore from Myanmar. It represents a crucial financial asset for the Myanmar Army. The gas extracted from Yadana contributes to about 8% of electricity generation in neighboring Thailand and supplies around half of the energy consumed in Myanmar’s largest urban center, Yangon.
Description
Containing over 150 billion cubic meters of natural gas, Yadana is projected to have a productive lifespan exceeding three decades. In 2009, its average output reached .
Located roughly beneath the seabed at a water depth near , the offshore installation comprises two unmanned wellhead platforms, one wellhead platform connected by a bridge, a production platform, living accommodations, and a medium compression platform.
The extracted gas is conveyed through two pipeline systems. The main Yadana Gas Pipeline extends , including subsea pipeline from Yadana to Daminseik onshore, followed by an overland stretch of to the Thai border at Pilok. This pipeline traverses territories inhabited by the Karen ethnic community. Completed in 1998 with an investment of US$1.2 billion, it has a capacity of .
A second pipeline, launched on 12 June 2010, covers from Yadana to Yangon. This pipeline, with a diameter of , consists of both offshore and onshore sections measuring and respectively, and is designed to alleviate power shortages in Yangon with a capacity of .
Project company
The operation of the Yadana gas field and its pipelines is managed by TotalEnergies, a French multinational energy corporation, partnered by Chevron Corporation (USA) as a junior stakeholder, alongside PTT, Thailand’s state-owned oil and gas firm, and Myanma Oil and Gas Enterprise (MOGE), Myanmar’s state-owned entity. TotalEnergies holds a 31.2% working interest; Chevron owns 28.3%, PTT controls 25.5%, and MOGE maintains 15%.
In January 2022, TotalEnergies declared its exit as both operator and joint venture partner in the Yadana project. Subsequently, PTT Exploration and Production Public Company Limited (PTTEP) was designated as the new operator by the remaining partners, with the transfer anticipated to finalize by July 20, 2022.
According to the Production Operating Agreement (POA), TotalEnergies’ stake will be redistributed among the other partners without financial compensation. Following this transition, PTTEP will possess a 37.08% interest while Chevron’s subsidiary, Unocal Myanmar Offshore Company Limited, will hold the largest portion at 41.10%.
Controversy
The Yadana initiative has attracted global condemnation due to investments from democratic countries into Myanmar’s government, which is recognized for human rights abuses. The State Law and Order Restoration Council faced criticism for violations during pipeline construction, prompting legal action against Unocal under the Alien Tort Claims Act.
EarthRights International reports indicate that local villagers were frequently coerced into forced labor supporting the project under severe conditions and faced violence when resisting. Since 2009, Burmese military personnel have compelled residents to construct security installations for the project. Critics contend that TotalEnergies was indirectly involved in these violations because of its dependence on military protection.
The 2006 documentary Total Denial exposes these contentious issues linked to the construction of the Yadana pipeline.