A Call for Total, Chevron, and PTTEP to Practice Revenue Transparency in Burma (Myanmar)

On April 27, 2010, a global "Call for Total, Chevron, and PTTEP to Practice Revenue Transparency in Burma (Myanmar)" was issued for the Yadana companies to promote transparency and accountability in the extractive sector in Burma by voluntarily publishing over 18 years of payments to the Burmese military regime. The statement was endorsed by EarthRights International and over 160 non-governmental organizations, labor unions, investment firms, scholars, and policy leaders, including the former Prime Minister of Norway and the former President of Ireland. These prominent groups and individuals are calling on the Yadana companies to assist the people of Burma in holding their government accountable for the revenues that the government receives on their behalf.

Despite this unprecedented international effort, Total, Chevron, and PTTEP have all refused to disclose their Yadana project-related payments to the Burmese junta.

This statement will remain open to endorsements until the Yadana companies practice revenue transparency. Organizations may endorse this statement by emailing transparency@earthrights.org.


The Statement: "A Call for Total, Chevron, and PTTEP to Practice Revenue Transparency in Burma (Myanmar)"

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The oil companies Total, Chevron, and the Petroleum Authority of Thailand Exploration and Production (PTTEP) have an opportunity to promote transparency and accountability in the extractives sector in Burma by becoming the first oil companies to voluntarily publish their payments to the Burmese authorities. We the undersigned policy leaders, non-governmental organizations, unions, investment firms, and academics call on Total, Chevron, and PTTEP to seize this opportunity and publish detailed information about their revenue payments to the Burmese authorities since 1992, including but not limited to taxes, fees, royalties, bonuses, and social benefits.  
In 1992, Total signed a production sharing contract with the Myanmar Oil and Gas Enterprise (MOGE) to explore, develop, and market natural gas deposits in Burma’s Andaman Sea. The company is now the principal stakeholder in a consortium including Chevron, PTTEP, and MOGE operating the Yadana (“treasure”) gas pipeline that transports natural gas from Burma to neighboring Thailand.

Preparations for the Yadana pipeline began in the early 1990s and it was officially constructed in Burma from 1996-1999; gas sales to the Petroleum Authority of Thailand (PTT) commenced in 2000 and continue to date. The pipeline project transports natural gas to the Thailand border, from where it feeds into two power plants in Thailand, which in turn provide electricity to the Bangkok metropolitan area. The project is currently one of the single largest sources of revenue for the Burmese authorities.
In October 2009, Total disclosed that its portion of the Yadana natural gas project in Burma generated US$254 million for the Burmese authorities in 2008.

We the undersigned commend the company on this step in the right direction and take this opportunity to urge Total, Chevron, and PTTEP to commit to practice full revenue transparency in Burma in the future, and to publish all payments made to the Burmese authorities since 1992. We also encourage Total to disclose payments made in support of its socio-economic projects in the local area of the Yadana project, including information about the flow and amount of payments, and the origins of the revenue financing the socio-economic projects.

We the undersigned believe that if Total, Chevron, and PTTEP publish comprehensive data and information about their payments to the Burmese authorities since 1992, the companies would send a positive message to the people of Burma and help contribute to a more constructive presence of their company in the country. Moreover, revenue transparency will help the companies and their home states avoid the appearance of complicity in mismanagement of the gas revenue generated for the Burmese authorities, which could also improve shareholder value. The companies’ revenue transparency will also send an important and constructive message to other oil companies involved in new extractive projects in Burma.

Revenue transparency in Burma is within Total, Chevron, and PTTEP’s ability. Total’s contracts with MOGE, to which Chevron and PTTEP are parties, became public documents through human rights litigation in U.S. courts between Burmese citizens and Total’s partner Unocal Corporation. The governing contracts do not prohibit Total, Chevron, or PTTEP from practicing full revenue transparency in payments to the Burmese authorities. The aggregate figures published by Total in October 2009 likewise confirm the company’s ability to disclose payment figures.

Moreover, Total has publicly expressed that generally it is “committed to strict [financial] transparency,” recognizing that the benefits from natural resource wealth are often “distributed unequally among the populace” of resource-rich states, and that a “lack of transparency reflects weak institutions and feeds conflict” in host states. Former Total CEO and current chairman of the board Thierry Desmarest noted definitively and correctly that “[t]ransparency is in Total’s interest.” While Total and Chevron each play a leading role in the Extractive Industries Transparency Initiative (EITI), neither at present publish payments to governments on a country-by-country basis.

Revenue transparency in the extractive industries has become an element of corporate responsibility, promoting stability and good governance in resource-rich developing countries and contributing to long-term energy security. Transparency in foreign companies’ payments to host states promotes responsible management of revenues by host states and increases the likelihood that host-country citizens will benefit from the wealth generated from their country’s natural resources.

Likewise, we the undersigned acknowledge that transparency from host states is equally important. The Burmese authorities should take immediate steps to disclose all revenues received from extractive projects, adopt the Extractive Industries Transparency Initiative (EITI), and require all oil, gas, mining, and hydropower companies operating in the country to practice disaggregated revenue transparency.

In Burma, a nexus of factors underscores the critical need for revenue transparency in the extractive industries, including the relatively large percentage of national income from natural gas sales; the lack of good governance and documented corruption by state authorities; and the consistent allegations of serious human rights abuses associated with oil and gas development projects in the country.

We the undersigned believe the initial investment in the Yadana gas project in Burma was not advisable for Total, Chevron (formerly Unocal), and PTTEP, given the subsequent, well-documented and widespread human rights violations committed by the Burmese military against the local population. Total, Chevron, and PTTEP should now practice revenue transparency as a core element of corporate responsibility in Burma.

Signatories as of Jan 25, 2012

  1. Kjell Magne Bondevik, former Prime Minister of Norway; President, The Oslo Center for Peace and Human Rights
  2. Mary Robinson, former President of Ireland; former United Nations High Commissioner for Human Rights; President, Realizing Rights
  3. Tony Baldry, former Foreign Minister of the United Kingdom
  4. The Baroness Cox, CEO Humanitarian Aid Relief Trust
  5. Kerry Kennedy, founder of the Robert F. Kennedy Center for Justice and Human Rights
  6. Dr. Robert Goodland, former Environmental Advisor, the World Bank Group
  7. Zac Goldsmith, former Editor, The Ecologist, and UK Parliamentary Candidate
  8. Amnesty International
  9. Academics Stand Against Poverty
  10. African Centre for Sustainable Livelihoods
  11. ASEAN Inter-Parliamentary Myanmar Caucus
  12. Asociación Civil por la Igualdad y la Justicia
  13. Burma Action Ireland
  14. Burma Economic Watch, Maquarie University
  15. Burmese American Democratic Alliance
  16. Castan Centre for Human Rights Law, Monash University, Australia
  17. Center for Energy Politics (Republic of Korea), 연구실장 이정필
  18. Christian Solidarity Worldwide
  19. Citizens Action for Responsibility Enterprise (CARE), Seoul, South Korea
  20. Citizens for Justice-Malawi
  21. CorpWatch
  22. Crude Accountability
  23. Debt and Development Coalition Ireland
  24. Digital Democracy
  25. EarthRights International (ERI)
  26. Free Burma Rangers
  27. Friends of the Earth US
  28. Future in Our Hands
  29. Global Competitiveness Empowerment Forum
  30. Global Exchange
  31. Global Financial Integrity
  32. Global Witness
  33. HELIO International
  34. Human Orientation Movement for Environment (HOME), Nigeria
  35. Humanitarian Aid Relief Trust
  36. Justice in Nigeria Now
  37. Kairos Europe (Brussels Office)
  38. Korea Federation for Environmental Movements
  39. Korean House for International Solidarity
  40. Korean Public Interest Lawyers Group (GOGGANGAM)
  41. Lumière Synergie Développement, Sénégal
  42. Luta Hamutuk Institute-Timor Leste
  43. Missionary Oblates of Mary Immaculate: Justice Peace/Integrity of Creation Office
  44. Norwegian Church Aid
  45. Norwegian Burma Committee
  46. Norwegian Mission to the East
  47. Open Society Institute
  48. Partners Relief & Development
  49. People’s Solidarity for Participatory Democracy, South Korea
  50. PLATFORM UK
  51. Project Maje
  52. Publish What You Pay – France
  53. Remember Saro-Wiwa
  54. Revenue Watch Institute
  55. Rohingya Community in Norway
  56. Save My Future (SAMFU) Foundation, Liberia
  57. Secours Catholique / Caritas France
  58. Sierra Club
  59. Swedish Burma Committee
  60. Swedish Burma Human Rights Association
  61. The Oslo Center for Peace and Human Rights
  62. The Other Media, India
  63. Timor Leste Core Group on Transparency
  64. Tiri
  65. US Campaign for Burma
  66. Worldwide Impact Now
  67. All Arakan Students’ and Youths’ Congress * †
  68. All Burma Federation of Student Unions  °
  69. All Burma Students’ Democratic Front *
  70. All Burma Students League *
  71. All Kachin Student and Youth Union * †
  72. ALTSEAN Burma
  73. Arakan National Council ◊ (comprised of all Arakanese political parties and civil society organizations)
  74. Arakan League for Democracy – Liberated Area (Youth) *
  75. Arakan League for Democracy (Youth Wing Exile)
  76. Arakan Rohingya National Organization
  77. Arakan Youth Network Group †
  78. Assistance Association for Political Prisoners (Burma)
  79. Backpack Health Worker Team
  80. Burma Centre Delhi
  81. Burma Ethnic Nationalities Network - Canada
  82. Burma Office (Australia)
  83. Burmese Women’s Union ‡ °
  84. Canadian Friends of Burma
  85. Canadian Campaign for Free Burma
  86. Chin Human Rights Organization
  87. Chin National Council ◊ (comprised of all Chin political parties and civil society organizations)
  88. Chin Student Union †
  89. Chinland Guardian
  90. Democratic Party for a New Society * °
  91. Free Burma Campaign Singapore
  92. Human Rights Education Institute of Burma
  93. Human Rights Foundation of Monland
  94. Kachin National Organization ◊ (comprised of all Kachin political parties and civil society organizations)
  95. Kachin Women’s Association - Thailand ‡
  96. Karen Community Canada
  97. Karen Human Rights Group
  98. Karen State Coordinating Body ◊ (including Karen National Union and all Karen civil society organizations)
  99. Karen Teacher Working Group
  100. Karen Women’s Organization ‡
  101. Karen Youth Organization † *
  102. Karenni National Women’s Organization ‡
  103. Karrenni National Youth Organization †
  104. Karenni State Coordinating Body ◊ (including Karenni National Progressive Party and all Karenni civil society organizations)
  105. Karenni Students Union †
  106. Kayan New Generation Youth †
  107. Kuki Students Democratic Front *
  108. Kuki Women’s Human Rights Organization ‡
  109. Lahu National Development Organization
  110. Lahu Women’s Organization ‡
  111. Mon Unity League †
  112. Mon State Coordinating Body ◊ (comprised of all Mon political parties and civil society organizations)
  113. Mon Youth Progressive Organization *
  114. Naga National League for Democracy (Youth) *
  115. National League for Democracy- Liberated Area (Youth) *
  116. Network for Democracy and Development °
  117. Palaung Women’s Organization ‡
  118. Palaung Youth Network group † *
  119. Pa-O Women’s Union ‡
  120. Pa-O Youth Organization * †
  121. People’s Defence Force °
  122. Rakhaing Women’s Union ‡
  123. Rakhaing Environment and Human Rights Watch (REHRW)
  124. Shan State Representative Council ◊ (comprised of all ethnic nationalities’ organizations in Shan State)
  125. Shan Women’s Action Network ‡
  126. Shwe Gas Movement
  127. Ta’ang Students and Youth Organization *
  128. Tavoy Women’s Union ‡
  129. Tavoyan Youth Organization *
  130. United Lahu Youth Organization †
  131. Women’s League of Chinland ‡
  132. Women’s Rights & Welfare Association of Burma ‡
  133. Young Chi Oo Workers Association °
  134. Zomi Student and Youth Organization *
  135. Dr. Daniel Aguirre, Human Rights Law Lecturer, Centre for Human Rights Studies, Mahidol University
  136. Saleem H. Ali, PhD, Associate Professor of Environmental Planning and Asian Studies, Rubenstein School of Environment and Natural Resources, University of Vermont
  137. Desmond Ball, PhD, Professor, Strategic & Defence Studies Centre, School of International, Political & Strategic Studies, Australia National University
  138. Chris Beyrer, MD, MPH, Professor of Epidemiology, International Health, and Health, Behavior, and Society, Johns Hopkins Bloomberg School of Public Health
  139. Patrick Bond, University of KwaZulu-Natal Centre for Civil Society (Environmental Justice Project)
  140. Paul Collier, Professor of Economics, University of Oxford; Director, Centre for the Study of African Economies; Professorial Fellow of St. Anthony’s College
  141. John G. Dale, Professor, Department of Sociology and Anthropology, George Mason University 
  142. Christina Fink, Independent Scholar
  143. Macartan Humphreys, Associate Professor of Political Science, Columbia University
  144. Kyung Soo Jung, Professor, College of Law, Sookmyung Women’s University, Seoul, Republic of Korea
  145. Stuart Kirsch, Associate Professor of Anthropology, University of Michigan
  146. Michael Klare, Professor of Peace and World Security Studies, Hampshire College, Amherst, Mass.
  147. Ken MacLean, Assistant Professor of International and Social Change, Clark University
  148. Dr. Adam McBeth, Senior Lecturer, Faculty of Law, Monash University, Australia
  149. Tun Myint, Assistant Professor, Department of Political Science & Environmental Studies, Carleton College
  150. Christiana Ochoa, Professor of Law, Indiana University Maurer School of Law - Bloomington
  151. Scott Pegg, Associate Professor, Department of Political Science, IUPUI
  152. Thomas Pogge, Leitner Professor of Philosophy and International Affairs, Yale University; Oslo and Australia National Universities
  153. Michael Ross, Professor of Political Science and Director of the Center for Southeast Asian Studies, University of California, Los Angeles (UCLA)
  154. Martin Sandbu, PhD, Senior Research Fellow, Zicklin Center for Business Ethics, Wharton School, University of Pennsylvania; and Economics Leader Writer, Financial Times.
  155. Benjamin Smith, Associate Professor and Associate Chair, Department of Political Science, University of Florida
  156. Voravit Suwanvanichkij, MD, MPH, Research Associate, Center for Public Health and Human Rights, Johns Hopkins Bloomberg School of Public Health
  157. Sean Turnell, Associate Professor of Economics, Macquarie University
  158. Tony Venables, BP Professor of Economics, University of Oxford; Director of Oxford Centre for the Study of Resource Rich Economies
  159. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
  160. International Brotherhood of Teamsters
  161. Korean Confederation of Trade Unions (KCTU)
  162. Service Employees International Union (SEIU)
  163. Trade Union Congress (TUC)
  164. Unite
  165. Boston Common Asset Management
  166. Calvert Asset Management, Co., Inc.
  167. Newground Social Investments
  168. Northwest Coalition for Responsible Investment
  169. Outcrop Research Consulting
  170. Trillium Asset Management
  171. Zevin Asset Management

Notes

  1. This figure was published by Total in a response to a 106-page report released on September 10, 2009 by the non-governmental organization EarthRights International. It follows previous recommendations from numerous investors as well as the International Federation for Human Rights, Info Birmanie, and the Burma Campaign UK calling on Total to disclose monies paid to the Burmese authorities.
  2. In 2005, Unocal Corporation was acquired in full by Chevron.
  3. Total, “About Total: Group Presentation: Financial transparency,” available at http://www.total.com/en/about-total/group-presentation/business-principles/financial-transparency-940523.html (last visited January 11, 2010).
  4. Id.

      * This organization is a member of the Student and Youth Congress of Burma (SYCB).
      † This organization is a member of the Nationalities Youth Forum (NY Forum).
      ‡ This organization is a member of the Women’s League of Burma (WLB).
      ° This organization is a member of the Forum for Democracy in Burma (FDB).
      ◊ This organization is a member of the Ethnic Nationalities Council (ENC).