ERI Reports on Yadana Project in Burma Receive Unprecedented Attention and Lead to Critical Changes

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ERI released two reports in September about the Yadana pipeline that link the oil giants Total and Chevron to forced labor, killings, high-level corruption and authoritarianism in military-ruled Burma (Myanmar). Total Impact and Getting It Wrong received unprecedented attention worldwide, and in conjunction with effective advocacy are contributing to critical industry changes related to Burma and more broadly the extractive sector. This week, the Wall Street Journal ran a feature on the controversial Shwe project, and the lessons from the Yadana project, relying prominently on ERI’s expertise relating to natural resources development in Burma.

Total Impact revealed for the first time how much revenue Total and Chevron’s project has generated for the Burmese regime (US$4.83 billion), and the offshore location of misappropriated gas revenue in two banks in Singapore. Despite the Singapore banks denials, ERI has confirmed from high level non-Singapore government sources that named banks and several other banks in Singapore are now “backing off cash from Burma” concerned over risks in holding certain accounts. If true, this would be significant; however, ERI is working to ensure that the banks, Monetary Authority of Singapore and other stakeholders do more to ensure the military junta is not squandering illicit gains from Burma’s natural gas wealth.

Since the September release ERI has been conducting targeted international advocacy with governments, policymakers, and the investment community, and this work appears to be having positive impacts.

ERI was pleased to see in Total’s response that the company published the junta’s revenue from Total’s portion of the project in 2008 ($254 million) per ERI’s recommendations that the company practice revenue transparency in Burma. While this is not nearly the amount of data ERI recommended Total publish, it is a positive and encouraging step forward, suggesting the company’s traditional intransigence may be softening in a particularly important area.

In Getting it Wrong, ERI challenges the workings of a major CSR assessment organization, US-based CDA Collaborative Learning Projects who conducted five deeply flawed assessments of Total and Chevron’s impacts in Burma. The report analyzes the assessments and how they have contributed to a whitewashing campaign by the companies, misleading investors and other interested parties on actual conditions in the pipeline area. One goal of this report and its companion Total Impact was to provide policymakers and investors with a more accurate picture of Total’s impacts in Burma and to provide companies like CDA with constructive guidance for conducting more rigorous, genuine, and therefore useful assessments of the impacts of corporate activity on local communities and larger society.

In a related development, ERI has learned from several investors in Total that since our report launch the company may be considering ways to facilitate a truly independent, quantitative and empirical survey of its social and economic impacts in Burma, per ERI’s recommendations and contrary to the flawed surveys conducted by CDA.

ERI is continuing to campaign for the Yadana companies to accept responsibilities for all localized impacts of the project, including many occurring outside of their self—designated “pipeline corridor”, and we hope to have positive news on this front in the coming months.

Total Impact and Getting It Wrong received unprecedented French media coverage.Media attention of the reports was unprecedented and contributed critical pressure on the companies around our findings and recommendations. In France, the home of Total, the reports were covered by every major print and online media outlet. Liberation the second-largest French daily newspaper devoted an entire cover page and three subsequent pages to the report – an unprecedented four full pages of coverage. Le Monde and other online French publications also published several stories on the reports.

Internationally, the reports were covered by the BBC, The Independent, The South China Morning Post, Time Magazine, The National, Ethical Corporation, The Irrawaddy, The Australian, Voice of America, and numerous others. All of the major news wire services - AFP, Reuters, AP, DPA – covered ERI’s reports and findings over several news cycles in articles that were picked up by newspapers and publications worldwide, including the Myanmar Times.

Burmese language media outlets covered the reports extensively, including The Irrawaddy, Mizzima, Democratic Voice of Burma (DVB), Khitpyaing news (or New Era), Radio Free Asia, and others, reaching hundreds of thousands of Burmese readers.

The most influential oil industry magazine – Upstream – published a balanced and favorable feature-length story on the reports by Amanda Battersby, as did several financial sector news sources, including Forbes.

ERI did numerous radio interviews around the world, including with Corey Flintoff of National Public Radio in the US and with national radio services in France, Spain, and Germany. We also did feature-length radio interviews in Burmese language with BBC Burmese service, Radio Free Asia, Voice of America, and DVB, reaching hundreds of thousands of listeners in Burma.

ERI did several television interviews about the reports and our work to improve corporate behavior in Burma’s extractive sectors, including live national television in France, a live interview on Al Jazeera television, and taped pieces for Reuters TV and DVB television.

All of this media attention, which ERI worked for weeks to generate, is critical in helping raise awareness in Burma and internationally about the impacts of Total and Chevron in the country, and to achieve our clear advocacy goals and recommendations.

ERI has been meeting with governments, investors, NGO’s and others since the release of these reports, and we expect several positive outcomes in the coming months we look forward to sharing.

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