Total And Chevron Suspend Dividend Payment For Myanmar Military Regime

Total's Yadana offshore gas drilling rig in Myanmar. (Source: Total Myanmar)

JAKARTA - French oil and gas company Total, as well as US energy company Chevron, decided to suspend payments related to a joint venture with the Myanmar military regime.

A move that human rights groups have lauded, in line with the pressure they exerted with the civilian National Unity Government (NUG) of Myanmar. Similar pressure was put on international companies doing business in Myanmar following the February 1 military coup.

In a statement, Total said, along with the unstable conditions in Myanmar after a joint proposal with Chevron's shareholders in a meeting with the Moattam Gas Transportation Company, decided to suspend all cash distributions.

Total is the largest shareholder with 31.24 percent, while Chevron holds 28 percent. The rest are PTTEP and Thailand's Myanma Oil and Gas Company.

"Total condemns the violence and human rights violations taking place in Myanmar and reaffirms, will comply with any decisions that may be taken by relevant international and national authorities, including any applicable sanctions issued by EU or US authorities", the statement said, cited from Reuters, Thursday, May 27.

"The humanitarian crisis in Myanmar requires a collective response to improve the welfare of the Myanmar people", Chevron said in a statement.

"Every action must be carefully considered, to ensure the Myanmar people are no longer harmed by the unintended and unforeseen consequences of well-meaning decisions", Chevron continued in a statement.

The postponement received a positive response from Justice for Myanmar, saying that the suspension of dividend payments would limit one source of income for the Myanmar military regime.

"But we note that this is only a fraction of the revenue the junta receives from Total's operations in Myanmar, which also includes a share of state gas revenues, royalties, and corporate income taxes", Justice For Myanmar spokesman Yadanar Maung said in a statement.

Located off Myanmar's southwestern coast in Martaban Bay, the Yadana field produces gas for delivery to power plants in Thailand. They also supply Myanmar's domestic market, via an offshore pipeline built and operated by state energy company Myanmar Oil and Gas Enterprise.

Total said it would continue to maintain the production of the Yadana gas field, so as not to disrupt the vital electricity supply for local residents of Myanmar and Thailand.

Regarding the Myanmar Coup, VOI editorial team continues to monitor the political situation in one of the ASEAN member countries. Casualties from civilians continue to fall. You can follow the news surrounding the Myanmar military coup by clicking on this link.