By Emma Connors, AFR, South-east Asia correspondent, Jan 23, 2022

Energy giants TotalEnergies and Chevron are pulling out of a massive gas project in Myanmar, citing the deterioration in human rights and the rule of law since a military deposed the elected government a year ago.

The move comes as other south-east nations disagree over how to deal with Myanmar, where the junta is believed to have killed 1488 people and arrested thousands more in its brutal attempt to stamp out widespread opposition to the February 1 coup.

TotalEnergies has run the Yadana gas field off Myanmar’s south-west coast for three decades. Its equity partners are Unocal-Chevron; PTTEP, a subsidiary of the Thai state-owned company PTT; and the state-owned Myanma Oil and Gas Enterprise (MOGE). About 70 per cent of the gas transported from the Yadana field is exported, generating foreign revenue for the Myanmar military, the Tadmadaw. TotalEnergies has notified its partners it will withdraw from Yadana in six months. This will trigger a transfer of its interest and the operator role to the remaining parties. Chevron is also getting out. “In light of circumstances in Myanmar, we have reviewed our interest in the Yadana natural gas project to enable a planned and orderly transition that will lead to an exit from the country,” Chevron said in a statement.

“We have been in discussions with the operator to understand their position. As a non-operator with a minority interest in the project, our immediate priority remains the safety and well-being of employees, safe operations and the supply of much-needed energy for the people of Myanmar and Thailand.” PTTEP, which is also the main buyer of Yadana gas, said it put “the utmost importance” on energy security of Thailand and Myanmar as it considers the future of the project.

Other Western companies, including Australia’s Woodside, pulled out of Myanmar in the months following the coup. On Friday, Shell confirmed it, too, no longer held exploration licences in the country.

“The situation, in terms of human rights and more generally the rule of law, which have kept worsening in Myanmar since the coup of February 2021, has led us to reassess the situation and no longer allows TotalEnergies to make a sufficiently positive contribution in the country,” TotalEnergies said in a statement.

The company has also indicated it would support specific sanctions that targeted the foreign revenue the junta earns from gas. Last week, TotalEnergies chief executive Patrick Pouyanné advised Human Rights Watch the company had spoken to French and US authorities concerning the implementation of targeted sanctions on gas revenue flows, and said the company “would not only comply with any sanction decision from the European or American authorities but also supports the implementation of such targeted sanctions”.

The Tadmadaw is “highly dependant” on offshore gas revenue for foreign currency, said Clancy Moore, Australian Director of Publish What You Pay, a global group focused on financial transparency in extractive industries. “Since the coup, TotalEnergies and Chevron’s projects have paid around $US500 million ($696.5 million) into the pockets of Myanmar’s murderous generals. The decision to divest their operations is a win for the people of Myanmar and a blow to the junta,” he said. “Total must now divest in a responsible manner that respects human rights and stops the flow of gas revenues propping up the military regime.”

Western democracies have decried the junta’s violence but repeatedly deferred to the Association of Southeast Asian Nations (ASEAN) as the best-placed organisation to try to restore human rights in Myanmar. However, ASEAN has failed to make headway with its five-point plan to stop the violence. Each of the 10 ASEAN members agreed to the plan in April, but there has been little progress since.

In recent weeks ASEAN members have split over the decision by Cambodia, this year’s ASEAN chair, to engage with the junta. Cambodian Prime Minister Hun Sen, who has ruled his country since 1985, travelled to Myanmar and met with General Min Aung Hlaing, leader of the State Administration Council installed by the coup. On Friday, Mr Hun Sen hit back at Malaysia’s foreign minister Saifuddin Abdullah, who suggested he should have spoken with his ASEAN counterparts before taking the trip.

Mr Hun Sen made his displeasure known in a telephone conversation with Indonesia’s President Joko Widodo. A readout of the conversation was given to media by Cambodia’s state broadcaster TVK and Mr Hun Sen also posted an account on Facebook. “Samdech [Hun Sen] said that the foreign minister should not be too arrogant with inappropriate remarks to ASEAN leaders, especially the chair,” the readout said. “And he lacks politeness,” it quoted Mr Hun Sen saying. In Jakarta, the presidential palace also released a statement after the call. It noted Mr Joko had “emphasised” ASEAN’s approach towards Myanmar should be based on agreed principles – including the five-point plan.