Chevron, Total exit Myanmar over deteriorating conditions




This photo shows TotalEnergies tower in La Defense business district outside Paris on Sept.7, 2021. French energy conglomerate TotalEnergies has asked the American and French governments to support targeted sanctions against Myanmar’s oil and gas funds, the largest single source of income for the country’s military leaders. (AP Photo/Rafael Yaghobzadeh, File)

PARIS (AP) — TotalEnergies, one of the world’s largest energy conglomerates, said Friday it was stopping all operations in Myanmar, citing rampant human rights abuses and deteriorating rule of law since the country’s military overthrew the government. Chevon also said it was planning an exit.

The announcement came just a day after the French company called for international sanctions targeting the oil and gas sector, which remain one of the military government’s primary sources of funding.

Total and Chevron had come under increasing pressure over their role in running the offshore Yadana gas field, and Thailand’s PTT Exploration & Production. Total has a majority stake in the venture and runs its daily operations, while MOGE collects revenues on behalf of the government.

“Since the Feb. 1 coup, we have seen the evolution of the country and it is clearly not favorable: The situation of rule of law and human rights in Myanmar has clearly deteriorated over months and despite the civil disobediance movements, the junta has kept power and our analysis is that it’s unfortunately for the long term,” Total said.

Since the takeover, the military has cracked down brutally against dissent, abducting young men and boys, killing health care workers and torturing prisoners.

Total said it would withdraw without financial compensation and hand over its interests to the other stakeholders.

About 50% of Myanmar’s foreign currency comes from natural gas revenues, with MOGE expected to earn $1.5 billion from offshore and pipeline projects in 2021-2022, according to a Myanmar government forecast. Prior rounds of U.S. and European sanctions against the Myanmar military have excluded oil and gas.

In a statement released shortly after Total’s announcement, Chevron said it too was planning to leave “in light of circumstances.”

7 Precious Metals Stocks That Will Offset the Effects of Inflation

There’s no getting around it. Inflation is going to be an unwelcome guest at our holiday gatherings this year. Estimates say this will be the most expensive Thanksgiving dinner in years. The Consumer Price Index (CPI) jumped 6.2% in October. That was the biggest surge in 30 years.

But the latest inflation data only confirmed what investors already knew. At least the ones that put gas in their cars or buy groceries. And yet, Washington continues to advocate even more spending. The latest “skinny” infrastructure bill will still pump over $1 trillion (that’s trillion with a “T”) into the economy. Even economists who would usually be favorably disposed to the current administration acknowledge that this will only cause inflation to increase.

That means it’s a good time to consider investing in precious metals which are considered to be safe-haven assets and a hedge against inflation. But that’s not the only reason to consider precious metals. You can also get some nice growth. Gold, for example, is up more than 300% in the past 15 years. And we would certainly advocate that you consider owning a bit of physical metals if you can.

However, buying precious metals stocks gives you exposure to many mining companies. As the spot price for the metals rises, it becomes more profitable for these companies to run their mining operations.

View the “7 Precious Metals Stocks That Will Offset the Effects of Inflation”.



Source link


Leave a Reply