Responsible Investment in Burma

2016 Chevron Corp.

 

 

WHEREAS: Chevron, in partnership with Total, the Petroleum Authority of Thailand, and Myanmar Oil and Gas Enterprise (MOGE), holds equity in one of the largest investment projects in Burma (Myanmar): the Yadana gas-field and pipeline that transports gas to Thailand, generating billions of dollars for the Burmese regime.

 

In March 2015, Chevron entered into a new, additional Production Sharing Contract (PSC) with MOGE to explore for oil and gas in the Rakhine Basin. Chevron will be the operator of the block with a 99 percent interest.

 

Chevron has thus far not submitted a report to the U.S. Department of State as set forth in the Department of State's Reporting Requirements on Responsible Investment in Burma. Companies with new investments in Burma are expected to prepare these reports. Such a report is part of the U.S. government's efforts to encourage and assist U.S. companies to develop robust policies and procedures to address a range of impacts resulting from their investments and operations in Burma. These public reports also empower civil society to take an active role in monitoring investment in Burma and to work with companies to promote investments that will enhance broad-based development and reinforce political and economic reform.

 

These reports address human rights concerns, security arrangements, and other risks of doing business in Burma.

 

Following the Burmese military's multiple crackdowns on and imprisonment of pro-democracy and human rights activists, Chevron has faced negative publicity, consumer boycotts, and operational risks concerning its investment in Burma. The Yadana project itself has been the focus of multi-million dollar lawsuits against its prior owners over reports egregious human rights abuses by Burmese troops employed to secure the Yadana pipeline area, including forcible relocation of villagers and use of forced labour when its pipeline was being constructed.

 

Nobel Peace Prize Laureate Aung San Suu Kyi, leader of the National League for Democracy, stated in June, 2012, that MOGE "The Myanmar Oil and Gas Enterprise (MOGE) ... with which all foreign participation in the energy sector takes place through joint venture arrangements, lacks both transparency and accountability at present."

 

In July 2012, U.S. lawmakers, including Senators John McCain and Joseph Lieberman, said, "We share Aung San Suu Kyi's concerns that MOGE's operations lack transparency, that it remains overly influenced by the Burmese military, and that the large amounts of foreign investment flowing into MOGE are not sufficiently accountable to the Burmese people or its parliament."

 

BE IT RESOLVED: The shareholders request the Board to make available a report in 2016, omitting proprietary information and at reasonable cost, consistent with the full scope and contents outlined in the U.S. State Department's Reporting Requirements on Responsible Investment in Burma on Chevron's operations in Burma.

 

Supporting Statement: Chevron's twenty years of investments and operations in Burma have exposed the company to significant operational, reputational, and legal risks. To mitigate these risks, shareholders expect Chevron to meet high standards of transparency and responsibility regarding its investments and operations in Burma.