Chevron agrees to sell Myanmar assets and will exit country

By Sabrina Valle

HOUSTON (Reuters) - U.S. oil major Chevron Corp on Friday said it had agreed to sell its assets in Myanmar to Canadian company MTI, in a deal that allows it to leave the Asian country.

The agreement comes one year after Chevron and other oil companies decided to leave Myanmar following a military coup in 2021. Chevron has condemned human rights abuses in the country.

Myanmar's Ministry of Communication did not immediately respond to a request for comment.

The U.S. company on Friday said it had agreed to sell for an undisclosed amount its 41.1% interest in the Yadana Project to a subsidiary of MTI. Yadana produces natural gas for domestic use and export to Thailand.

French oil producer TotalEnergies sold its assets and left the country in July 2022.

Chevron's sale follows a year-long business strategy in which it worked to reduce proceeds from the sale that would end up with the military government. Myanmar' state-controlled oil company MOGE was part of the joint venture.

Before putting its Yadana stake for sale, Chevron temporarily increased its participation in the project from 28% to 41%, absorbing an interest TotalEnergies.

The strategy aimed to gain greater control over the joint venture, and reduce what MOGE could make from the transaction or from the asset in the future.

The military government took power in 2021, alleging fraud in a general election won by Nobel laureate Aung San Suu Kyi's party.

(Reporting by Sabrina Valle. Editing by Gerry Doyle)