Japanese energy company Eneos Holdings Inc. aims to withdraw from Myanmar¡¯s Yetagun gas project in response to ¡°social issues,¡± a spokesperson said Friday, amid criticism that the project is funding the southeast Asian nation¡¯s military junta.
The move comes after Malaysia¡¯s state-run Petronas and Japan¡¯s Mitsubishi Corp. said last month they were divesting from the project, in the latest exits by major energy companies since last year¡¯s military coup.
¡°We are examining and discussing with our business partners about all possible measures toward closing the business based on the situation to address social issues and business potential,¡± the Eneos spokesperson said.
Earlier on Friday, the Nikkei business daily said Eneos would exit amid criticism that the project funded the ruling junta.
Petronas¡¯ subsidiary, PC Myanmar (Hong Kong) Ltd., holds a stake of 40.9% in Yetagun, while Myanma Oil and Gas Enterprise owns 20.5%.
A Japanese consortium, led by the government and Eneos unit JX Nippon Oil & Gas Exploration, has a stake of 19.3%, with the rest owned by PTTEP International Ltd.
In January, TotalEnergies and Chevron Corp., partners in a major gas project in Myanmar, said they were withdrawing from the country, citing its worsening humanitarian situation after the coup.
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