Military govt ruining economy, says MP after Petronas' Myanmar withdrawal

 

National oil company Petronas’ decision to withdraw from the Yetagun gas field off Myanmar shows that the military government is ruining Myanmar’s economy, said Klang MP Charles Santiago.

The Asean Parliamentarians for Human Rights (APHR) chairperson said the situation in Myanmar has deteriorated so much since the coup in February last year that it is “impossible” for any company to conduct business normally.

“In January, Chevron Corp and TotalEnergies (who are partners in a major gas project in Myanmar) withdrew from Myanmar citing the human rights situation and deepening conflict in the country.

“Now is the turn of Petronas to get out as its operations are no longer profitable.

“The withdrawals of foreign companies show clearly that, besides massacring its own people to take control of the country, the military junta led by Min Aung Hlaing is also ruining the economy of Myanmar,” Charles said when contacted by Malaysiakini.

Min Aung Hlaing

Step up pressure

While Malaysia is leading efforts within Asean to step up the pressure on the military, he said much more needs to be done to prevent Myanmar from becoming “a failed state at our doorstep”.

Meanwhile, Bayan Baru MP Sim Tze Tzin said Petronas’ move is not only due to geopolitical considerations but more so commercial ones.

“Petronas is a commercial entity, they will have to think through the cost and benefits, so most likely it is due to commercial considerations, and of course, a little bit of geopolitical (considerations), but I think that is not a major factor,” he said to Malaysiakini.

Sim, who is a member of the parliamentary special select committee on international affairs, said while there is pressure on companies to withdraw from Myanmar, ultimately every company is trying to make their investments viable.

It was reported on April 29 that Petronas has withdrawn from Blocks M12, M13 and M14 located in the Yetagun gas field off Myanmar.

International consortiums leaving

Petronas subsidiary PC Myanmar (Hong Kong) Ltd, which had operated the Yetagun project since 2003, held a 40.9 percent stake. Myanmar Oil and Gas Enterprise owns 20.5 percent.

Petronas has withdrawn from the Yetagun gas field off Myanmar

A Japanese consortium, led by the Japanese government and JX Nippon Oil & Gas Exploration, has a 19.3 percent stake in the project. JX Nippon is a part of Japan’s Eneos Group.

Following Petronas’ move, JX Nippon also announced they were withdrawing from the Yetagun project on May 2.

This comes after Japan’s Mitsubishi Corp, which indirectly held a minority stake in the Yetagun field, said in February that it was divesting its stake.

International companies doing business in Myanmar have come under pressure from rights groups and Myanmar’s shadow civilian government to review their operations and stop payments flowing to a military government that seized power from an elected government and has brutally cracked down on dissent.

However, in its statement, Petronas did not mention the turmoil in Myanmar as a reason for the withdrawal and said instead “the decision was made following a thorough techno-commercial review”. - Mkini