Chevron leaves Myanmar and sells assets
2023.02.11 01:43
Chevron leaves Myanmar and sells assets
By Tiffany Smith
Budrigannews.com – Chevron Corp., a major US oil company, on Friday, the company stated that it had reached an agreement to sell its assets in Myanmar to the Canadian company MTI, allowing it to leave the Asian nation.
Following a military coup in 2021, Chevron and other oil companies made the decision to leave Myanmar one year earlier. Human rights violations in the country have been denounced by Chevron.
A request for clarification was made, but the Ministry of Communication in Myanmar did not immediately respond.
On Friday, the American company announced that it had reached an agreement to sell a MTI subsidiary its 41.1% stake in the Yadana Project for an undisclosed sum. Yadana makes goods for use at home and for export to Thailand.
TotalEnergies, a French oil producer, sold its assets and left the country in July 2022.
Chevron used a year-long business strategy to reduce the amount of money that would go to the military government from the sale. The joint venture included the state-controlled oil company MOGE in Myanmar.
Chevron temporarily increased its participation in the project from 28% to 41% before selling its Yadana stake, acquiring an interest from TotalEnergies.
The strategy aimed to reduce MOGE’s future profits from the asset or the transaction and to increase control over the joint venture.
After alleging fraud in a general election that was won by the party of Nobel laureate Aung San Suu Kyi, the military government took power in 2021.
