Woodside has decided to withdraw from its interests in Myanmar, where is has operated since 2013 conducting multiple exploration and drilling campaigns.

The company holds a 40 per cent participating interest in the A-6 joint venture as joint operator and participating interests in exploration permits AD-1 and AD-8.

Woodside had previously announced that it was placing all Myanmar business decisions under review following the state of emergency declared in February 2021 and the deteriorating human rights situation in the country.

In 2021 Woodside completed the relinquishment of exploration permits covering offshore blocks AD-2, AD-5, and A-4, and is also in the process of withdrawing from blocks AD-6, AD-7, and A-7.

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 Myanmar Oil and Gas Enterprise (MOGE).

The non-cash expense associated with the decision to withdraw from blocks A-6 and AD-1 is expected to impact 2021 net profit after tax (NPAT) by about US$138 million.

This is in addition to the US$71 million exploration and evaluation expense for block AD-7 disclosed in Woodside’s fourth quarter report on 20 January 2022.

These costs will be excluded from underlying NPAT for the purpose of calculating the dividend.

Woodside Chief Executive Officer Meg O’Neill said while Woodside had hoped to develop the A-6 gas resources with its joint venture participants and deliver much-needed energy to the Myanmar people, there is no longer a viable option for Woodside to continue its activities.

She continued: “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.

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