Myanmar: Energy giants Total and Chevron withdraw after military coup

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Yangon in Myanmar: Around half of the power requirements of the economic metropolis are covered by the Yadana gas field

Photo: ROMEO GACAD/ AFP

The energy companies Total and Chevron withdrew completely from the Southeast Asian country a year after the military coup in Myanmar.

The deteriorating human rights situation and the general situation led to the decision, Totalenergies said in Paris.

After abandoning ongoing projects, gas production in the Yadana field will also be withdrawn.

The Yadana gas project off the country's south-west coast is being operated by a joint venture that includes US company Chevron, which also announced it is pulling out of Myanmar.

Total said the move also responds to calls from human rights organizations and stakeholders to prevent gas production proceeds from benefiting Myanmar's rulers.

In the end, Total saw no other option than complete withdrawal.

The gas production under the direction of Total will expire within the contractual notice period of six months.

Total wants to ensure the energy supply by then.

There will be no financial compensation for Total.

Central source of money for the military junta

Total has operated the project since 1992 and owns almost a third of it.

Chevron has a minority stake in the gas project, and its subsidiary Unocal Myanmar Offshore has been active in Myanmar since the early 1990s.

According to Total, around 30 percent of the gas produced is sold to the military-controlled energy company MOGE, which covers around half of the electricity needs of the economic metropolis of Yangon.

According to the human rights organization Human Rights Watch, foreign exchange earnings from gas production are a key source of income for the military junta.

The revenue amounts to more than one billion dollars annually.

A series of harsh sanctions have been imposed on the military junta since the coup in Myanmar in early 2021.

According to Myanmar human rights activists, more than 1,400 civilians were killed during protests against the coup.

Several lawsuits are underway against the de facto head of government, Aung San Suu Kyi, who was ousted in the course of the coup, including allegations of corruption.

At the beginning of the year, she was sentenced to four years in prison.

hba/dpa/Reuters