TotalEnergies, Chevron withdraw from Myanmar amid humanitarian crisis
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This image was taken at La Defense in the suburbs of Paris, May 28, 2021. It shows the new TotalEnergies Logo during the unveling ceremony.
AFP | AFP | Getty Images
French oil giant TotalEnergiesU.S. Energy Firm ChevronFriday was the day that the government announced its intention to pull out of Myanmar. It cited the country’s humanitarian crisis following last year’s coup.
TotalEnergies saidIt had begun the withdrawal from Yadana’s offshore gas field, and the MGTC transport system because the current situation “no longer permits TotalEnergies make a sufficient positive contribution to the country.”
According to the company, its partners were notified of the decision and withdrawal will be made “at the latest by the end of the 6 month contractual period.”
Unprecedented crisis
Myanmar’s security forces estimatedAs they crackdown on any dissent, the authorities have already killed over 1,500 people since 2005. coup in Feb. 2021. These figures were disputed by the military junta of this country.
The U.N. saidThe situation in Myanmar is getting worse over the past year. This warning indicates that the country faces an unprecedented political, socioeconomic, and humanitarian crisis.
The critical threshold of acute malnutrition is believed to be within 14 states or regions, out of 15. According to U.N., the needs of people are likely to increase dramatically due to the military coup and a third wave Covid-19 cases.
TotalEnergies released the following statement. “The situation in Myanmar, both in terms human rights, and generally the rule-of-law, have continued to get worsening since the coup in February 2021 has caused us to reassess it and not permit TotalEnergies anymore to make a sufficient positive contribution to the country.”
According to the company, it also stated that it has “decided, as both an operator as well as shareholder, to begin the contractual process for withdrawing from Yadana’s Yadana field as well as MGTC Myanmar in Myanmar,” without paying any financial compensation to TotalEnergies.
An activist group demands targeted sanctions
TotalEnergies was an operator and partner of Yadana for nearly three decades. It held a 31.24% share. Chevron has a 28.26% share. PTTEP is a subsidiary owned by the Thai state-owned energy company PTT and MOGE in Myanmar hold the rest.
The shareholders in the MGTC Project are identical to the Yadana Gas Field and have the same percentages.
CNBC was informed by a Chevron spokesperson that “in light of the circumstances in Myanmar we have reviewed [our interest] in the Yadana natural gaz project to allow a planned transition that will lead us to an exit.”
They added that they were a minor operator with an interest in the project and had no immediate priorities.
Justice for Myanmar: Activist Group welcomedTotalEnergies has announced its withdrawal, prompting other energy companies and governments to take targeted sanctions against Myanmar’s oil-and gas industry.
Yadanar Maung (spokesman for Justice for Myanmar) stated that TotalEnergies had finally listened to the appeals of Myanmar citizens, international and local civil society, to stop funds from the terrorist junta.
“Governments must now move forward with specific sanctions against oil and natural gas in order to deprive the junta of funds for remaining oil-and gas projects.”
TotalEnergies shares fell 1.5% Friday.
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