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TotalEnergies Implements Its Responsible Withdrawal From Myanmar
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
TotalEnergies has announced its withdrawal from the Yadana gas field and MGTC in Myanmar, effective by July 20, 2022, due to the deteriorating situation in the country. The company aims to ensure a responsible exit for its stakeholders and has initiated a due diligence process. PTTEP International, a subsidiary of PTT, is set to take over operations and has committed to hiring TotalEnergies' current employees. The transition aims to maintain socio-economic programs supporting local communities. TotalEnergies will not seek financial compensation for its assets during this withdrawal.
Positive
PTTEP International will take over Yadana and MGTC operations, ensuring continuity.
PTTEP has expressed willingness to retain TotalEnergies' employees, providing job security.
Negative
Withdrawal indicates operational risks and challenges in Myanmar.
No financial compensation for assets may reflect potential losses.
PARIS--(BUSINESS WIRE)--
Regulatory News:
On January 21, 2022, TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) announced its decision to withdraw from the Yadana field and from gas transportation company MGTC in Myanmar, both as operator and as shareholder, because the situation in this country no longer allowed TotalEnergies to make a sufficiently positive contribution. Since then, TotalEnergies has initiated a due diligence process to ensure a responsible withdrawal for its stakeholders in Myanmar, particularly its employees and the local communities that have been supported by TotalEnergies for many years through its role as an operator in the MGTC gas pipeline area.
On March 14, 2022, PTTEP International, a subsidiary of the Thai national energy company PTT, confirmed its willingness to take over as operator of Yadana and MGTC and, in line with this decision, to increase its direct stake in Yadana by taking over TotalEnergies’ equity share. Chevron has also decided to take over TotalEnergies’ equity share, thereby increasing its stake in Myanmar. As a reminder, in light of the exceptional situation, TotalEnergies has chosen to withdraw from Myanmar without seeking any financial compensation for its assets.
In addition, PTTEP has expressed its willingness to take on all staff currently employed by the TotalEnergies affiliate in Myanmar. TotalEnergies is working closely with PTTEP to ensure that the transition occurs in a fair and orderly manner. With respect to our employees who have been ensuring the safety and efficiency of operations in Myanmar since January 21, TotalEnergies will help all those who wish to transfer to the new operator and will ensure that they continue to be employed under the same conditions.
At the same time, TotalEnergies will work with PTTEP to ensure that the existing socio-economic development program led by TotalEnergies to support local communities living near the MGTC pipeline will continue after its withdrawal. To this end, TotalEnergies will allocate the resources necessary to a dedicated fund in order to contribute financially to the actions to be carried out by the future operator.
TotalEnergies' withdrawal from Yadana and MGTC will be effective at the latest at the expiry of the 6-month contractual period, i.e. July 20, 2022, giving the Company and PTTEP enough time to ensure the safe and orderly transfer of the operatorship while ensuring a fair transition for our key stakeholders, our employees and local communities where we operate.
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About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our 105,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).
