27/01/2022 - 12:20

Woodside takes $290m hit on Myanmar

27/01/2022 - 12:20

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Woodside has elected to withdraw from its Myanmar operations after nearly a decade amid the country's deteriorating human rights situation.

Woodside takes $290m hit on Myanmar
Woodside has withdrawn from its Myanmar interests. Photo: David Henry.

Woodside has elected to withdraw from its Myanmar operations after nearly a decade amid the country's deteriorating human rights situation.

The decision to withdraw from the area is set to have a non-cash impact on net profit of $US138 million ($A194 million).

In addition, Woodside has already disclosed it spent $US71 million ($A100 million) in exploration and evaluation in Myanmar.

The oil and gas giant released a statement today advising of the decision, which followed a military takeover of the Asian nation in February last year followed by a brutal crackdown on protests.

Woodside said it had placed all Myanmar business decisions under review following the state of emergency declared in February.

Chief executive Meg O'Neill said Woodside had hoped to continue projects needed to deliver much-needed energy to the Myanmar people, but there was no longer a viable option to continue its activities.

“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,” the CEO said in a statement.

“Given the ongoing situation in Myanmar we can no longer contemplate Woodside’s participation in the development of the A-6 gas resources, nor other future activities in-country,” she said.

Woodside relinquished its exploration permits covering offshore several blocks in the country last year and is in the process of withdrawing from others.

“Woodside 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 (PSC) held with the Myanma Oil and Gas Enterprise (MOGE).”

Woodside shares are up 1.95 per cent and trading at $24.60.

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