Chevron agrees to sell Myanmar assets and will exit country

MTI

11/02/2023 02:02

By Sabrina Valle
       HOUSTON, Feb 10 (Reuters) - U.S. oil major Chevron Corp
 CVX.N  on Friday said it had agreed to sell its assets in
Myanmar to Canadian company MTI, in a deal that allows it to
leave the Asian country. 
    The agreement comes one year after Chevron and other oil
companies decided to leave Myanmar following a military coup in
2021. Chevron has condemned human rights abuses in the country.
    Myanmar's Ministry of Communication did not immediately
respond to a request for comment. 
    The U.S. company on Friday said it had agreed to sell for an
undisclosed amount its 41.1% interest in the Yadana Project to a
subsidiary of MTI. Yadana produces natural gas for domestic use
and export to Thailand.
    French oil producer TotalEnergies sold its assets and left
the country in July 2022. 
    Chevron's sale follows a year-long business strategy in
which it worked to reduce proceeds from the sale that would end
up with the military government. Myanmar' state-controlled oil
company MOGE was part of the joint venture.
    Before putting its Yadana stake for sale, Chevron
temporarily increased its participation in the project from 28%
to 41%, absorbing an interest TotalEnergies. 
    The strategy aimed to gain greater control over the joint
venture, and reduce what MOGE could make from the transaction or
from the asset in the future. 
    The military government took power in 2021, alleging fraud
in a general election won by Nobel laureate Aung San Suu Kyi's
party. 
 (Reporting by Sabrina Valle. Editing by Gerry Doyle)
 ((sabrina.valle@tr.com | Twitter: @sabrinavalle))