Woodside (ASX:WPL) to withdraw from Myanmar amid human-rights crisis

• Woodside Petroleum (WPL) has announced its withdrawal from Myanmar after being active in the country for close to nine years
• Woodside previously said it would place business decisions in Myanmar under review following the State of Emergency declaration and deteriorating human rights conditions
• As a consequence of withdrawal from Blocks A-6 and AD-1, the non-cash expenses are expected to impact the 2021 net profit after tax by roughly A$194.8 million
• This amount is on top of the A$100 million exploration and evaluation expense for Block AD-7 disclosed in WPL’s fourth-quarter report from January 20 2022
• Woodside Petroleum shares have risen 2.94 per cent to $24.84 a share

Woodside Petroleum (WPL) has announced its withdrawal from Myanmar after being active in the country for close to nine years.

Woodside previously announced it would be placing business decisions in Myanmar under review following the State of Emergency declaration in February 2021 and deteriorating human rights conditions.

According to today’s announcement, Woodside will now start the process of formally exiting 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).

As a consequence of withdrawal from Blocks A-6 and AD-1, the non-cash expenses are expected to impact the 2021 net profit after tax by roughly US$138 million (A$194.8 million).

This amount is on top of the US71 million (A$100 million) exploration and evaluation expense for Block AD-7 disclosed in WPL’s fourth-quarter report from January 20 2022.

For the purposes of calculating the dividend, these costs will be excluded from the underlying NPAT.

“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,” CEO Meg O’Neill said.

“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.”

Woodside Petroleum shares have risen 2.94 per cent to $24.84 a share at 2:23 pm AEDT.