Unocal, Total Extend Ties With Myanmar

Oil companies Unocal of El Segundo and Total of France have extended ties with Myanmar despite increasing pressure from human rights activists protesting the military rulers.

The two companies said Thursday that they had joined Myanmar’s state-owned Myanmar Oil & Gas Enterprise in a production-sharing contract to explore an area in the Andaman Sea known as Block M8.

“We are happy to expand our opportunities in Myanmar,” John Vandermeer, Unocal’s vice president for new ventures in South and Southeast Asia, said in a statement.

“This step reflects Unocal’s strategic focus on connecting growing energy markets to vitally needed energy resources,” Vandermeer said. “Increases in natural gas production can only bring broader growth to Myanmar’s emerging economy.”

But several multinational corporations, in particular oil companies, have come under increasing pressure from human rights activists to withdraw from ventures in the military-controlled country. The Yangon government has been criticized for suppressing the democratic movement led by opposition leader Aung San Suu Kyi.

Earlier this week, human rights activists said they plan to step up protests against oil companies.

“The next focus is certainly the oil companies,” said Larry Dohrs, spokesman for the Free Burma Coalition, which has headed a campaign to stop investment in Myanmar.

PepsiCo, following the lead of other multinational corporations, this week severed the last of its ties with Burma.

Unocal and Total’s major interest in Burma is the $1.2-billion Yadana gas project, also in the Andaman Sea, which it shares with partners MOGE and Petroleum Authority of Thailand Exploration and Production.