PARIS: Myanmar’s army has lost a source of revenue as French energy giant Total said Wednesday that cash payments to a joint venture with the army have been suspended due to unrest in the country.
Total has come under pressure from pro-democracy activists to “stop financing the junta” since a military coup in February which has been followed by a brutal crackdown on dissent.
More than 800 people have been killed by the military, according to a local monitoring group.
Total said in a statement that the decision to suspend payments was made at a May 12 meeting of shareholders of Moattama Gas Transportation Company Limited (MGTC), the joint venture which owns a pipeline linking the Yadana gas field and Thailand.
The suspension was proposed by Total, which holds a 31 percent stake in MGTC and US partner Chevron (28 percent).
Thai firm PTTEP holds a quarter of the company while 15 percent is held by military-controlled Myanmar Oil and Gas Enterprise (MOGE).
MOGE generates annual revenues of around $1.0 billion from the sale of natural gas.
“In light of the unstable context in Myanmar... cash distributions to the shareholders of the company have been suspended” effective from April 1, Total said.
It added that it “condemns the violence and human rights abuses occurring in Myanmar” and would comply with any potential sanctions against the junta from the EU or US.
The MGTC pipeline brings gas from the offshore Yadana field operated by Total to Myanmar’s border with Thailand. Total said it would continue to produce gas so as not to disrupt electricity supply in either country.
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