YANGON • French oil and gas group Total and United States energy company Chevron have suspended some payments from a gas joint venture that would have reached Myanmar's junta, earning praise from pro-democracy activists for taking an important first step.
International companies doing business in the country have come under pressure from rights groups and Myanmar's parallel civilian government to review their operations to stop payments flowing to a military government that seized power on Feb 1.
In a statement, Total said that "in the light of the unstable context in Myanmar", after a joint proposal with Chevron shareholders at the meeting of the Moattama Gas Transportation Company (MGTC), MGTC shareholders voted to suspend all cash distributions.
Total is the biggest shareholder with 31.24 per cent, while Chevron holds 28 per cent. Thailand's PTTEP and Myanmar's state energy firm Myanma Oil and Gas Enterprise hold the remainder.
"Total condemns the violence and human rights abuses occurring in Myanmar and reaffirms that it will comply with any decision that may be taken by the relevant international and national authorities, including applicable sanctions issued by the European Union or the US authorities," the statement said.
Chevron in a statement said: "The humanitarian crisis in Myanmar requires a collective response to improve the welfare of the people of Myanmar."
The US company also said: "Any actions should be carefully considered to ensure the people of Myanmar are not further disadvantaged by unintended and unpredictable consequences of well-intentioned decisions."
Justice for Myanmar, an activists group, welcomed the decision to suspend payments of dividends, which it said would curb one source of revenue to the junta.
Located off Myanmar's south-west coast in the Gulf of Martaban, the Yadana fields produce gas for delivery to power plants in Thailand. They also supply Myanmar's domestic market, via an offshore pipeline built and operated by Myanma Oil and Gas Enterprise.
Total said it is continuing to maintain the production of the Yadana gas field, "so as not to disrupt the electricity supply that is vital to the local populations of Myanmar and Thailand".
REUTERS
