Japan’s Eneos Pulls Out of Yetagun Gas Project in Myanmar

Eneos Holdings Inc., a Japanese energy company, announced Monday that it will abandon a natural gas project in Myanmar.

A news release published on the company’s website indicated that JX Nippon Oil & Gas Exploration, which owns 19.3% of the project, took into account “the country’s existing condition, including social difficulties, and project economics based on the technical evaluation” of the gas reserves.

JX Nippon Oil & Gas Exploration Corp., an Eneos subsidiary, owns a 40% stake in a Tokyo-based joint venture involved in the project.

On Friday, Nippon Oil Exploration (Myanmar), a joint venture that owns a 19.3 percent stake in Myanmar’s Yetagun gas reserves, informed its business partners of the decision.

Eneos said the withdrawal will take effect if the Myanmar government gives its consent.

“The impact of this transaction on our consolidated financial results will be determined after obtaining approval from the Myanmar government, but is currently expected to be minimal,” Eneos concluded in the statement.

Following the military coup in February 2021, which deposed the elected civilian government led by Aung San Suu Kyi, Eneos became the latest Japanese corporation to leave Myanmar.

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