French, US energy giants exit Myanmar as junta-ruled country slips further into chaos
France’s TotalEnergies and US-headquartered Chevron, two of the world’s largest energy conglomerates, announced on January 21 that they were ceasing all operations in Myanmar.
As primary reasons, they cited rampant human rights abuses, deteriorating rule of law and ever-worsening business conditions since the country’s military coup on February 1 last year.
The two companies, together with Thailand’s PTT Exploration and Production, are partners in a major gas project in Myanmar, the Yadana gas project off Myanmar’s southwestern coast. TotalEnergies is the operator and majority shareholder of the Yadana field with a working interest of 31.2 per cent, while Chevron holds 28.3 per cent, PTT Exploration and Production 25.5 per cent and Myanmar’s military-controlled Myanma Oil and Gas Enterprise 15 per cent.
The joint venture is also holding stakes in Moattama Gas Transportation Company, which owns the pipeline linking the Yadana gas field with Thailand.
Seventy per cent of the gas field’s production exported to Thailand
Of the gas from Yadana, about 30 per cent is supplied for domestic use, mainly powering the business hub of Yangon, while 70 per cent is exported to Thailand where it meets around eight per cent of the neighbour’s total power demand.
The gas field is one of the largest sources of income for the Myanmar military, accounting for over 50 per cent of government revenue. The income forecast from gas projects for the country’s fiscal year 2021/22 was $1.5 billion, according to an official forecast.
While Myanmar is facing a financial squeeze from many western countries that are imposing sanctions on individuals and businesses linked to the coup makers, prior rounds of US and European sanctions against the Myanmar military have excluded oil and gas.
Evolution since the coup “not favourable”
“Since the coup, we have seen the evolution of the country and it is clearly not favourable,” TotalEnergies said in a statement.
“The situation of rule of law and human rights in Myanmar has clearly deteriorated over months and despite the civil disobedience movements, the junta has kept power and our analysis is that it’s unfortunately for the long term,” is added.
According to US-based non-governmental advocacy group Human Rights Watch, TotalEnergies has signaled support for targeted sanctions on Myanmar’s natural gas revenues to block the country’s abusive military junta from profiting from hundreds of millions of dollars in payments.
Thai joint venture partner still undecided
In a statement released shortly after Total’s announcement, Chevron said it too was planning to leave “in light of circumstances.” The company has condemned the human rights abuses and said it would comply with any international sanctions.
Both firms said they would withdraw without financial compensation and hand over their interests to the other stakeholders, of which Thailand’s PTT Exploration and Production future role is not clear. The company so far only said that it was “carefully considering” the situation after the withdrawal of its international partners and would be putting “the utmost importance on energy security for both Thailand and Myanmar.”
[caption id="attachment_38108" align="alignleft" width="300"] The Yadana gas platform in the northern Andaman Sea[/caption] France’s TotalEnergies and US-headquartered Chevron, two of the world’s largest energy conglomerates, announced on January 21 that they were ceasing all operations in Myanmar. As primary reasons, they cited rampant human rights abuses, deteriorating rule of law and ever-worsening business conditions since the country’s military coup on February 1 last year. The two companies, together with Thailand’s PTT Exploration and Production, are partners in a major gas project in Myanmar, the Yadana gas project off Myanmar’s southwestern coast. TotalEnergies is the operator and majority shareholder of the...
France’s TotalEnergies and US-headquartered Chevron, two of the world’s largest energy conglomerates, announced on January 21 that they were ceasing all operations in Myanmar.
As primary reasons, they cited rampant human rights abuses, deteriorating rule of law and ever-worsening business conditions since the country’s military coup on February 1 last year.
The two companies, together with Thailand’s PTT Exploration and Production, are partners in a major gas project in Myanmar, the Yadana gas project off Myanmar’s southwestern coast. TotalEnergies is the operator and majority shareholder of the Yadana field with a working interest of 31.2 per cent, while Chevron holds 28.3 per cent, PTT Exploration and Production 25.5 per cent and Myanmar’s military-controlled Myanma Oil and Gas Enterprise 15 per cent.
The joint venture is also holding stakes in Moattama Gas Transportation Company, which owns the pipeline linking the Yadana gas field with Thailand.
Seventy per cent of the gas field’s production exported to Thailand
Of the gas from Yadana, about 30 per cent is supplied for domestic use, mainly powering the business hub of Yangon, while 70 per cent is exported to Thailand where it meets around eight per cent of the neighbour’s total power demand.
The gas field is one of the largest sources of income for the Myanmar military, accounting for over 50 per cent of government revenue. The income forecast from gas projects for the country’s fiscal year 2021/22 was $1.5 billion, according to an official forecast.
While Myanmar is facing a financial squeeze from many western countries that are imposing sanctions on individuals and businesses linked to the coup makers, prior rounds of US and European sanctions against the Myanmar military have excluded oil and gas.
Evolution since the coup “not favourable”
“Since the coup, we have seen the evolution of the country and it is clearly not favourable,” TotalEnergies said in a statement.
“The situation of rule of law and human rights in Myanmar has clearly deteriorated over months and despite the civil disobedience movements, the junta has kept power and our analysis is that it’s unfortunately for the long term,” is added.
According to US-based non-governmental advocacy group Human Rights Watch, TotalEnergies has signaled support for targeted sanctions on Myanmar’s natural gas revenues to block the country’s abusive military junta from profiting from hundreds of millions of dollars in payments.
Thai joint venture partner still undecided
In a statement released shortly after Total’s announcement, Chevron said it too was planning to leave “in light of circumstances.” The company has condemned the human rights abuses and said it would comply with any international sanctions.
Both firms said they would withdraw without financial compensation and hand over their interests to the other stakeholders, of which Thailand’s PTT Exploration and Production future role is not clear. The company so far only said that it was “carefully considering” the situation after the withdrawal of its international partners and would be putting “the utmost importance on energy security for both Thailand and Myanmar.”
