REG-TotalEnergies SE TotalEnergies Withdraws from Myanmar

TotalEnergies SEAnnouncement

21/01/2022 08:40

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220121:nBw1Yj1QYa&default-theme=true


TotalEnergies Withdraws from Myanmar

 

Following the coup of 1(st) February 2021 in Myanmar, TotalEnergies
(Paris:TTE) (LSE:TTE) (NYSE:TTE) has firmly condemned on several occasions the
abuses and human rights violations taking place there. Since then, our
company's decisions have been guided by clear principles: to halt all our
ongoing projects, but to continue to produce gas from the Yadana field, which
is essential for supplying electricity to the local Burmese and Thai
population, to protect our employees from the risk of criminal prosecution or
forced labour, and, insofar as is materially and legally possible, to limit
the financial flows received by the national oil company MOGE.

Despite the actions taken, TotalEnergies has not been able to meet the
expectations of many stakeholders (shareholders, international and Burmese
civil society organisations), who are calling to stop the revenues going to
the Burmese state through the state-owned company MOGE from the Yadana field
production. In fact, this is materially impossible for TotalEnergies, as most
of the payments for the sale of the gas are made directly by the Thai company
PTT, the buyer of the exported gas. TotalEnergies has also approached the
French authorities to consider putting in place targeted sanctions that would
confine all the financial flows of the various partners to escrow accounts
without shutting down the gas production. TotalEnergies has not identified any
means for doing so.

While our Company considers that its presence in a country allows it to
promote its values, including outside its direct sphere of operations, the
situation, in terms of human rights and more generally the rule of law, which
have kept worsening in Myanmar since the coup of February 2021, has led us to
reassess the situation and no longer allows TotalEnergies to make a
sufficiently positive contribution in the country.

As a result, TotalEnergies has decided to initiate the contractual process of
withdrawing from the Yadana field and from MGTC in Myanmar, both as operator
and as shareholder, without any financial compensation for TotalEnergies. This
withdrawal has been notified today to TotalEnergies' partners in Yadana and
MGTC and will be effective at the latest at the expiry of the 6-month
contractual period. The agreements also stipulate that, in the event of
withdrawal, TotalEnergies' interests will be shared between the current
partners, unless they object to such allocation, and that the role of operator
will be taken over by one of the partners.

During this notice period, TotalEnergies will continue to act as a responsible
operator in order to ensure the continuity of gas deliveries for the benefit
of the population. TotalEnergies has indicated to its partners its willingness
to ease the transition to the new operator and facilitate the transfer of
staff who so wish.

***

About TotalEnergies in Myanmar

TotalEnergies has been a partner (31.24%) and operator of the Yadana gas field
(Blocks M5 and M6) in Myanmar since 1992, alongside its partners
Unocal-Chevron (28.26%), PTTEP (25.5%), a subsidiary of the Thai national
energy company PTT, and the Burmese state-owned company MOGE (15%).

The Yadana field produces around 6 billion cubic meters per year of gas of
which about 70% is exported to Thailand where it is sold to the national
company PTT and 30% to the national company MOGE for domestic use. This gas
helps to provide about half of the electricity in the Burmese capital Yangoon
and supplies the western part of Thailand. Gas is exported to Thailand through
a pipeline operated by MGTC that carries gas from the Yadana field to the
Burmese-Thai border, over 400 kilometers. The shareholders of MGTC are the
same as the partners in the Yadana field and in the same proportions.

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our 105,000 employees are committed to energy that is ever more
affordable, cleaner, more reliable and accessible to as many people as
possible. Active in more than 130 countries, TotalEnergies puts sustainable
development in all its dimensions at the heart of its projects and operations
to contribute to the well-being of people.

Twitter: @TotalEnergies
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ftwitter.com%2FTotalEnergies&esheet=52566519&newsitemid=20220121005119&lan=en-US&anchor=%40TotalEnergies&index=1&md5=0d8e68530b1fe76ab95c0e79e5f1ab23)
LinkedIn: TotalEnergies
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Ftotalenergies%2F&esheet=52566519&newsitemid=20220121005119&lan=en-US&anchor=TotalEnergies&index=2&md5=5acfc4863396417674d179db83158abd)
Facebook: TotalEnergies
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.facebook.com%2FTotalEnergiesFrance%2F&esheet=52566519&newsitemid=20220121005119&lan=en-US&anchor=TotalEnergies&index=3&md5=2412b420abb53a0c930a3a392fa06705)
Instagram: TotalEnergies
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.instagram.com%2Ftotalenergies%2F&esheet=52566519&newsitemid=20220121005119&lan=en-US&anchor=TotalEnergies&index=4&md5=fb6442d6111dde4cd37ace4c8d62e792)

Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in
this document are used to designate TotalEnergies SE and the consolidated
entities that are directly or indirectly controlled by TotalEnergies SE.
Likewise, the words “we”, “us” and “our” may also be used to refer
to these entities or to their employees. The entities in which TotalEnergies
SE directly or indirectly owns a shareholding are separate legal entities.
TotalEnergies SE has no liability for the acts or omissions of these entities.
This document may contain forward-looking information and statements that are
based on a number of economic data and assumptions made in a given economic,
competitive and regulatory environment. They may prove to be inaccurate in the
future and are subject to a number of risk factors. Neither TotalEnergies SE
nor any of its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends contained in
this document whether as a result of new information, future events or
otherwise. Information concerning risk factors, that may affect
TotalEnergies’ financial results or activities is provided in the most
recent Registration Document, the French-language version of which is filed by
TotalEnergies SE with the French securities regulator Autorité des Marchés
Financiers (AMF), and in the Form 20-F filed with the United States Securities
and Exchange Commission (SEC).

TotalEnergies 

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com
(mailto:presse@totalenergies.com) l @TotalEnergiesPR 
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ftwitter.com%2FTotalEnergiesPR&esheet=52566519&newsitemid=20220121005119&lan=en-US&anchor=%40TotalEnergiesPR&index=5&md5=b75abba167f9ca7c3681a8c6f4dc5222)

Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
(mailto:ir@totalenergies.com)



View source version on businesswire.com:
https://www.businesswire.com/news/home/20220121005119/en/
(https://www.businesswire.com/news/home/20220121005119/en/)

TotalEnergies


Copyright Business Wire 2022