Page 8 - AsiaElec Week 15 2021

AsiaElec POLICY AsiaElec

Total justifies position on Myanmar

MYANMAR FRENCH major Total has defended its decision Total’s Pouyanne added that while the com-
to continue producing natural gas in Myanmar pany had considered placing its tax payments
despite the military coup, arguing that to do oth- in escrow in protest over the violence, it had
erwise would put local staff at risk of reprisals decided against doing so for fear of exposing its
from the military regime. local managers.
French major Total has defended its decision The CEO said the company had not paid its
to continue producing natural gas in Myanmar $4mn monthly tax bill since the February 1 coup
despite the military coup, arguing that to do oth- “for the simple reason that the banking system
erwise would put local staff at risk of reprisals no longer functions”.
from the military regime. The French developer is not the only com-
Total CEO Patrick Pouyanne told France’s pany weighing up the pros and cons of an opera-
Journal du Dimanche on April 4 that his com- tional suspension or exit from the country.
pany was concerned its staff might be forced to South Korean steel giant POSCO is report-
work against their will at the Yadana field if Total edly mulling how it might end its relationship
opted to suspend operations. The executive said with a military-backed company in Myanmar
the field was a major source of gas supply both Economic Holdings Ltd (MEHL), in which it
to Thailand and the local market, adding that owns a 70% stake. Unit POSCO C&C arm wants
this had also contributed to its decision-making either to sell its 70% stake in the conglomerate
process. or buy out its partner, an unnamed source told
“Can we halt production of this gas that sup- reported on April 5.
plies electricity to a large population in Yangon, However, the newswire quoted its sources
adding to their suffering?” Pouyanne said in the as saying the South Korean company was con-
statement. “For their part, the Thai authorities cerned that any exit might endanger hundreds
have alerted us to the importance of this source of millions of dollars in profits from POSCO’s gas
of energy.” assets in the country.
Total has been under mounting pressure Subsidiary Posco International operates
from campaigners to cease all of its Myanmar the producing Shwe field in partnership with
operations in response to the military regime’s state-owned Myanmar Oil and Gas Enterprise
increasing violence towards protesters. The com- (MOGE). The South Korean company also oper-
pany has suspended new projects in the country. ates Block A3, where it discovered gas via the off-
There are growing calls on the international shore Mahar well in February 2020.
stage for the military’s violent response to end, Australia’s Woodside, meanwhile, began
with Japanese daily The Nikkei reporting this reducing staffing levels in late February and
week that the 10-member Association of South- while its existing exploration efforts are set to
east Asian Nations (ASEAN) was edging closer continue, the company is reviewing all new
to an emergency summit on the issue. projects.™

P8 www. NEWSBASE .com Week 15 14•April•2021