Oil and Gas Companies are financing Myanmar’s Military Junta
Location:
MyanmarProject risks:
Conflict/Violence, Environmental Destruction, Social HarmCompanies:
- POSCO Holdings Inc
- Posco International Corporation
- Myanma Oil and Gas Enterprise (MOGE)
- PTT Exploration and Production Public Company Ltd (PTTEP)
- China National Petroleum Corporation (CNPC)
- Oil and Natural Gas Corporation Ltd (ONGC)
- Korea Gas Corporation (KOGAS)
- GAIL (India) Ltd
- PTT Public Company Ltd
- China North Industries Group Corporation Ltd
- China ZhenHua Oil Co Ltd
approximate location
After ten years of democratic reforms oil and gas companies are once again financing Myanmar’s military junta.14571 According to former Member of Parliament U Tun Win, as well as national and international NGOs, the generals in power are using this gas money to kill the people of Myanmar.[1]
On February 1 2021, the Myanmar military attempted to take over the country’s democratic institutions.[2]15427 The soldiers put the government leader Aung San Suu Kyi in prison.[3] To protest against the takeover, the people of Myanmar immediately took to the streets.[4] While their resistance was initially peaceful, the military's reaction was not.[5] Since February 2021, the soldiers have killed at least 5,938 people and arrested 27,650 protestors.15427 The United Nations Special Rapporteur on Myanmar, Thomas Andrews, has been clear about the gravity of the military’s violent and oppressive campaign against Myanmar’s people: “The military’s attacks on the people of Myanmar constitute crimes against humanity and war crimes. No one has been spared the impact of the military’s violence.”15427
Note: Reputational risk projects on GOGEL are updated annually. This article was last updated November 11 2024.
This is not the first time the generals rule Myanmar. From 1962 to 2011, Myanmar’s people lived under the dictatorship of the same military.[8] Then and now, oil and gas companies have helped to prop up the military. To be allowed to produce fossil fuels in Myanmar, companies have to pay a share of their revenue to the Myanma Oil and Gas Enterprise (MOGE).[9] MOGE is a state-owned company involved in all oil and gas projects in Myanmar. The US Treasury Department described MOGE as “the largest single source of foreign revenue for Burma’s military regime” when it imposed partial sanctions against the Company in October 2023.21387 When the military junta seized the democratic institutions of Myanmar, it also put MOGE under its control.15427 Due to lack of transparency, it is not possible to trace the exact oil & gas money flows. However, it is beyond doubt that much of the gas money that fossil fuel companies pay to MOGE flows straight to the military junta.
The name Yadana means treasure in Burmese, but the project has only been a treasure for the generals and foreign companies.15427 International oil and gas companies have paid junta-controlled MOGE and tax authorities hundreds of millions of US dollars over the past years.2138915427 The Yadana gas project is most likely the biggest money source of them all.15427 The Yadana field lies in the Andaman Sea off the Myanmar coast. Two pipelines transport gas away from the field, one to Myanmar and one to Thailand. The Moattama Gas Transportation Company pipeline runs through Myanmar’s vibrant tropical rainforest to Thailand. The pipeline from the Yetagun gas field follows a similar path through the forest.21390 In 1992, fossil fuel companies began to produce gas at the Yadana field. For nearly two decades, money flowed from TotalEnergies and its partners Chevron and PTTEP through MOGE to the junta.15427 Following the attempted coup in 2021, the generals again began profiting from Yadana's millions.15427 TotalEnergies and Chevron recently exited the project, but the field is still operating. PTTEP has increased its stake and is keeping MOGE’s money machine alive.21391
Right from the beginning, companies worked hand in hand with the military junta.15427 To make space for what was then Total and Chevron’s pipeline, the soldiers drove people out of their homes and villages and restricted the movements of those who remained.1542715427 They forced people to carry their weapons, construction equipment and rice for days on end, often without providing food or water.15427 Along the pipeline corridor, they made locals build roads, military barracks, police stations and helicopter landing pads for company executives.154271542715427 If the people refused to work for the military, they had to pay penalty fees until they had no money left.15427 If they worked for the soldiers, they couldn’t work on their farms.15427 Often, in one way or another, they lost their homes and their livelihoods and ended up in refugee camps and deep poverty.1542715427 Young girls and women reported being raped and tortured along the pipeline corridor.15427 The soldiers randomly beat, tortured, and murdered many people.15427 These men were part of the same military that now has a stranglehold on the country.21388
Although more and more international companies are leavinge Myanmar, the junta continues to crack down on protesters and kill civilians. More than 2.7 million people have been forced to leave their homes and everything they own because of the conflict resulting from the attempted coup.21392 Due to the ongoing conflict, it can at times be impossible for internally displaced people to access food and basic household items.21393 For Thai-government-linked PTTEP, this dismal situation seems to only represent new business opportunities. Besides increasing its stake in the Yadana gas field, the company wants to expand its gas production and develop a gas to power project.2139415427 However, this has not gone unnoticed. In early 2023, Myanmar’s civilian National Unity Government sent a letter to PTTEP demanding them to stop payments to MOGE.15427 Still, the company refuses to leave.
The oil and gas companies that have left Myanmar only began pulling out following extensive public pressure.15427 TotalEnergies exited the country in July 2022, one and a half years after the attempted coup.15427 ENEOS (JX Nippon) and Mitsubishi Corporation followed in 2023, and Chevron in 2024.2139521396
At that point, the companies had been helping to finance the junta for 2 whole years. The companies’ late exit will not bring back the dead, and it will not protect Myanmar’s people in future. TotalEnergies in fact handed over parts of its ownership shares in the Yadana gas field to MOGE.15427 This way, TotalEnergies’ withdrawal made the military junta earn even more money.15427 Later, Chevron handed over its stakes to PTTEP and MOGE.21397 Other companies, including Woodside and Petronas also declared that they will end their operations in Myanmar.154271542715427 Some only left because the gas reserves in the Yetagun field are no longer economically viable.15427 Civil society organizations are urging the companies to exit responsibly and take appropriate steps to close the field. Only this way would the companies ensure that future revenues of the gas fields do not fill the junta’s coffers.15427154271542715427 PTTEP, CNPC, and Korea Gas Corporation still produce fossil fuels in Myanmar.15427 Every day, gas money continues to finance the military’s brutality against the people of Myanmar.
Groups working on gas in Myanmar: Justice For Myanmar, Arakan Oil Watch, Ta’ang Students and Youth Organization, Shwe Gas Movement, EarthRights International
Further Resources:
https://www.oilwatcharakan.org
https://www.burmapartnership.org/2013/09/drawing-the-line/
https://www.justiceformyanmar.org/stories/mapping-the-myanmar-military-cartels-global-reach-through-posco
https://www.burmalibrary.org/en/the-human-cost-of-energy-chevrons-continuing-role-in-financing-oppression-and-profiting-from-human
https://www.oilwatcharakan.org/gas-companies-must-support-democracy-and-stop-flow-of-wealth-to-the-military-junta/
https://www.banktrack.org/project/shwe_gas_and_pipelines_projects#about
Sources: