TotalEnergies Withdraws from Myanmar
January 21 2022 - 3:40AM
Business Wire
Regulatory News:
Following the coup of 1st February 2021 in Myanmar,
TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has firmly
condemned on several occasions the abuses and human rights
violations taking place there. Since then, our company's decisions
have been guided by clear principles: to halt all our ongoing
projects, but to continue to produce gas from the Yadana field,
which is essential for supplying electricity to the local Burmese
and Thai population, to protect our employees from the risk of
criminal prosecution or forced labour, and, insofar as is
materially and legally possible, to limit the financial flows
received by the national oil company MOGE.
Despite the actions taken, TotalEnergies has not been able to
meet the expectations of many stakeholders (shareholders,
international and Burmese civil society organisations), who are
calling to stop the revenues going to the Burmese state through the
state-owned company MOGE from the Yadana field production. In fact,
this is materially impossible for TotalEnergies, as most of the
payments for the sale of the gas are made directly by the Thai
company PTT, the buyer of the exported gas. TotalEnergies has also
approached the French authorities to consider putting in place
targeted sanctions that would confine all the financial flows of
the various partners to escrow accounts without shutting down the
gas production. TotalEnergies has not identified any means for
doing so.
While our Company considers that its presence in a country
allows it to promote its values, including outside its direct
sphere of operations, 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.
As a result, TotalEnergies has decided to initiate the
contractual process of withdrawing from the Yadana field and from
MGTC in Myanmar, both as operator and as shareholder, without any
financial compensation for TotalEnergies. This withdrawal has been
notified today to TotalEnergies' partners in Yadana and MGTC and
will be effective at the latest at the expiry of the 6-month
contractual period. The agreements also stipulate that, in the
event of withdrawal, TotalEnergies' interests will be shared
between the current partners, unless they object to such
allocation, and that the role of operator will be taken over by one
of the partners.
During this notice period, TotalEnergies will continue to act as
a responsible operator in order to ensure the continuity of gas
deliveries for the benefit of the population. TotalEnergies has
indicated to its partners its willingness to ease the transition to
the new operator and facilitate the transfer of staff who so
wish.
***
About TotalEnergies in Myanmar
TotalEnergies has been a partner (31.24%) and operator of the
Yadana gas field (Blocks M5 and M6) in Myanmar since 1992,
alongside its partners Unocal-Chevron (28.26%), PTTEP (25.5%), a
subsidiary of the Thai national energy company PTT, and the Burmese
state-owned company MOGE (15%).
The Yadana field produces around 6 billion cubic meters per year
of gas of which about 70% is exported to Thailand where it is sold
to the national company PTT and 30% to the national company MOGE
for domestic use. This gas helps to provide about half of the
electricity in the Burmese capital Yangoon and supplies the western
part of Thailand. Gas is exported to Thailand through a pipeline
operated by MGTC that carries gas from the Yadana field to the
Burmese-Thai border, over 400 kilometers. The shareholders of MGTC
are the same as the partners in the Yadana field and in the same
proportions.
About TotalEnergies TotalEnergies is a global
multi-energy company that produces and markets energies: oil and
biofuels, natural gas and green gases, renewables and electricity.
Our 105,000 employees are committed to energy that is ever more
affordable, cleaner, more reliable and accessible to as many people
as possible. Active in more than 130 countries, TotalEnergies puts
sustainable development in all its dimensions at the heart of its
projects and operations to contribute to the well-being of
people.
Twitter: @TotalEnergies LinkedIn: TotalEnergies
Facebook: TotalEnergies Instagram: TotalEnergies
Cautionary Note The terms “TotalEnergies”, “TotalEnergies
company” or “Company” in this document are used to designate
TotalEnergies SE and the consolidated entities that are directly or
indirectly controlled by TotalEnergies SE. Likewise, the words
“we”, “us” and “our” may also be used to refer to these entities or
to their employees. The entities in which TotalEnergies SE directly
or indirectly owns a shareholding are separate legal entities.
TotalEnergies SE has no liability for the acts or omissions of
these entities. This document may contain forward-looking
information and statements that are based on a number of economic
data and assumptions made in a given economic, competitive and
regulatory environment. They may prove to be inaccurate in the
future and are subject to a number of risk factors. Neither
TotalEnergies SE nor any of its subsidiaries assumes any obligation
to update publicly any forward-looking information or statement,
objectives or trends contained in this document whether as a result
of new information, future events or otherwise. Information
concerning risk factors, that may affect TotalEnergies’ financial
results or activities is provided in the most recent Registration
Document, the French-language version of which is filed by
TotalEnergies SE with the French securities regulator Autorité des
Marchés Financiers (AMF), and in the Form 20-F filed with the
United States Securities and Exchange Commission (SEC).
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