Friday, January 21, 2022

Opinion: It's Big Oil, not environmentalists, who are foreign-funded

Gordon Laxer

The Canadian Association of Petroleum Producers (CAPP) may rue the day they made foreign funding a public issue. Three years ago, CAPP head Tim McMillan launched a crusade against “foreign-funded, anti-pipeline” activists. “We have been the victims of a very well-orchestrated, well-planned foreign-funded attack,” he charged.

© Provided by Edmonton Journal Alberta Premier Jason Kenney (C) is joined by MInister of Justice and Solicitor General Doug Schweitzer (L) and Minister of Energy Sonya Savage in Calgary on Thursday, July 4, 2019 and Kenney announced the launch of a public inquiry into the foreign funding of anti-Alberta energy campaigns.

CAPP is the apex oil and gas lobby group in Canada, wielding enormous influence in Alberta and the rest of Canada. McMillan’s call was heard loud and clear by Jason Kenney, then-leader of the UCP which went on to win the April 2019 election, partly on the promise to create a war room and public inquiry against “anti-Alberta energy campaigns.”

Did it not dawn on CAPP that crusading against a pittance of foreign funding of environmentalists trying to block the transportation and carbon pollution of oilsands oil would blow back and reveal just how foreign funded CAPP and Big Oil in Canada are?

People who live in glass houses should not throw stones.

To find out how foreign funded CAPP is, I researched the extent of foreign ownership of the corporations on CAPP’s board of governors. Foreign-owned means foreign-funded.

The Allan inquiry found that the annual trickle of foreign funding so small, it was less than the cost of the inquiry itself. Nevertheless, Alberta Energy Minister Sonya Savage said that regardless of size, it’s a “real concern” when any group is “influencing political and regulatory change using foreign funding.”

Agreed. If so, why did her government not direct the public inquiry to examine the far greater sums of foreign oil money that massively intervene in our energy and climate debates? Size matters.

Although the majority of oil corporations operating in Canada list their headquarters in Calgary, my research shows that their Canadian-ness is an inch deep. Of the 48 corporations on CAPP’s 2020 board of governors, 30 were confirmed to be fully or majority foreign-owned. There was insufficient data to definitively confirm the ownership of seven more corporations on CAPP board members, but the available data shows that they too are very likely foreign-owned. Combined, that makes 37 of 48 CAPP’s corporate board members — 77 per cent — that are fully or majority foreign-funded.

They produce about 97 per cent of the oil by corporations on CAPP’s board. In contrast, majority Canadian-owned corporations produced less than three per cent of it and are small players engaged in the declining conventional oil sector.

Furthermore, most of CAPP’s revenue comes from foreign-funded corporate members. Although CAPP refuses to make its revenue public, their site shows that their fees are based on each member’s oil production. The greater the production, the higher the fees. Since 97 per cent of the oil produced by CAPP’s corporate board members came from fully or majority foreign-owned corporations, those fees must account for about 97 per cent of CAPP’s revenue.

That doesn’t stop CAPP from gaily waving the Maple Leaf flag and claiming to speak for Canada’s national interest. Yet CAPP is but a copycat of its American big brother oil lobby group — the American Petroleum Institute (API). CAPP represents many of the same oil corporations as the API and shamelessly copies its brand of American petro-nationalism.

The API started a front group titled “Energy Citizens” in 2009. It promotes Big Oil’s interests, fights climate change legislation, appears to be citizen-based but is fully funded by the API. Five years later, CAPP started a similar front group and simply added the word “Canada“ to become “Canada’s Energy Citizens.” CAPP funds the grass-roots seeming group that oozes an ersatz brand of Canadian nationalism. What a fraud.

The deception evokes the ancient saying: “Why do you look at the speck of sawdust in your brother’s eye and pay no attention to the plank in your own eye?”

CAPP massively intervenes in Canadian elections. The federal government must close a loophole in the 2018 Election Modernization Act that bans foreign-owned corporations from participating in, and incurring expenses for election activities. The ban includes foreign-owned corporations headquartered abroad, but inexplicably allows election meddling if they list their headquarters in Canada. Closing the loophole would block CAPP, and all big foreign-funded corporations from interfering in our elections.

Gordon Laxer is author of the report “Posing as Canadian. How Big Foreign Oil Captures Canadian energy and climate policy” published by the Council of Canadians and the Canadian Centre for Policy Alternatives (B.C. and Saskatchewan offices). Laxer is the founding director of Parkland Institute at the University of Alberta. www.gordonlaxer.com.
Kenney says he wasn't ‘fully briefed’ on Madu's phone call to police chief until Monday


Alberta Premier Jason Kenney says he learned about Justice Minister Kaycee Madu’s traffic ticket last year, but wasn’t “fully briefed” until Monday about his minister calling Edmonton’s police chief to discuss it.
© Provided by Edmonton Journal Premier Jason Kenney provides an update on Alberta’s COVID-19 response at the McDougall Centre on Tuesday, January 4, 2022.

Madu was forced to step back from his ministerial duties following a phone call to Chief Dale McFee in March 2020, after Madu received a distracted driving ticket.

Late Monday, Kenney expressed disappointment in a series of tweets , but stopped short of asking Madu to resign pending the results of an independent investigation.

Amid calls from critics for Madu to step down from cabinet, Kenney fielded questions Thursday for the first time about the incident at a COVID-19 update.

“I do recall at some point last year hearing that minister Madu had gotten a ticket, had paid for it. I got fully briefed on all of this, including about the call and the details on Monday afternoon, following media inquiries,” said Kenney, adding his response included reaching out to Madu and “a number of” respected former leaders in the judiciary, government and policing who advised him to hire an independent investigator to determine whether there was an interference in the administration of justice.

Kenney said his chief of staff also reached out to Edmonton police Chief Dale McFee to discuss the phone call.

“If chief McFee had alleged that he felt this was an interference in the administration of justice, and the independence of the police or an effort to rescind a ticket, I would have made an immediate decision to remove Mr. Madu from cabinet — but that’s not the public statement that we have,” said Kenney.

“I was not on this call,” he said about the circumstances of the ticket and the phone call to McFee, noting the government has drafted terms of reference for the investigation and has begun contacting retired judges to work on it. Kenney did not indicate if the findings of the investigation would be made public, or when, but promised again that details would be available “in the very near future.”

In a previous statement to Postmedia, Madu has said on March 10, he was pulled over by an Edmonton police officer, who alleged he was driving while on his phone. Madu said he disagreed, and that his phone was in his pocket. Madu later spoke to McFee, raising concerns about racial profiling and saying he wanted to ensure he wasn’t being “unlawfully surveilled” following the controversy surrounding the Lethbridge Police Service .

Madu said he did not ask for the ticket to be rescinded, and regretted raising the issue with McFee.

Critics, including Alberta NDP justice critic Irfan Sabir, said by initiating the conversation with the police chief — regardless of whether he asked the chief to cancel the ticket — Madu engaged in political interference, and should resign .

Sources have told Postmedia’s Don Braid that the ticket was widely known in cabinet circles. Sgt. Michael Elliott, president of the Edmonton Police Association, has said on Twitter the assumption that police were surveilling the MLA was both “shameful” and “preposterous,” and said Madu, as justice minister, should have known better than to call the chief directly.

lijohnson@postmedia.com

twitter.com/reportrix
Horse who portrayed Seabiscuit dies at 24 at retirement farm


GEORGETOWN, Ky. (AP) — Popcorn Deelites, a 24-year-old retired thoroughbred who was one of several who portrayed Seabiscuit in the 2003 film, has died, Old Friends retirement farm in Kentucky announced Thursday.

Michael Blowen, the farm's founder and president, said the cause of death was complications from colic.

Popcorn Deelites was retired at Old Friends in Georgetown in 2005. His sire, Afternoon Deelites, was also retired there.

He appeared in numerous scenes throughout the Oscar-nominated film, including the match race against 1937 Triple Crown winner War Admiral.

Popcorn Deelites started 58 times and had 11 wins with career earnings of $56,880, the farm said.

Hall of Fame jockey Gary Stevens, who portrayed rider George Woolf in Seabiscuit, said Popcorn Deelites was a star in the film.

“He was my go-to guy in all the big scenes,” Stevens said. “He not only won real races multiple times, but he won the famous match race playing Seabiscuit.”

The Associated Press
Evergrande's debt crisis: International creditors threaten legal action over 'opaque' restructuring process

By Laura He, CNN Business 


Evergrande's international creditors are losing patience.

© Andrea Verdelli/Bloomberg/Getty Images A pedestrian walks past apartment buildings at China Evergrande Group's City Plaza development in Beijing, China, on Friday, Dec. 10, 2021.

A group of the company's overseas bondholders are threatening to take legal action over its "opaque" debt restructuring process, the latest sign of trouble for the embattled Chinese developer.


They said in a statement Thursday they've had to "seriously consider enforcement actions" after Evergrande failed to engage substantially with them about reorganizing its operations.

The Portable Heater That Has Taken The World By StormSEE MORESponsored by ALPHA HEATER

The firm's "lack of engagement and opaque decision-making to date is contrary to well established international standards in restructuring processes of this magnitude," the group wrote in its statement. The investors are represented by law firm Kirkland & Ellis and investment bank Moelis & Co.

They said the company's behavior "tarnishes offshore investors' views" about expecting fair treatment when investing in Chinese companies, and added they are "prepared to take all necessary actions to vehemently defend its legal rights and protect its legitimate interests."

Evergrande did not respond to a request for comment from CNN Business about the statement, but said in a Friday filing with the Hong Kong Stock Exchange that it would hire more financial and legal advisers to help "follow up" with demands from creditors.

The real estate developer is one of China's largest and it's still reeling under more than $300 billion of total liabilities, including about $19 billion outstanding offshore bonds held by international asset managers and private banks on behalf of their clients.

Evergrande has been scrambling for months to raise cash to repay lenders, and the company's chairman Xu Jiayin has been reportedly selling off personal assets to prop up its finances.

But time seemed to run out for the company last month, when Fitch Ratings declared that Evergrande had defaulted on its debt — a downgrade that the ratings agency said reflected the company's inability to pay interest due that month on two dollar-denominated bonds.

There's also evidence that the Chinese government is guiding Evergrande through a restructuring of its debt and sprawling business operations. The company set up a risk management committee last month that is staffed by officials from state-owned enterprises in Guangdong, where Evergrande is based, along with an executive from a major bad debt management firm owned by the central government.

But international bondholders say they've been left in the dark about the company's plans. The creditors said in their Thursday statement that they have tried to talk with Evergrande, but have received "little more than vague assurances of intent, lacking in both detail and substance."

"Actions speak considerably louder than words," they added, saying that the "overriding impression" is that despite the company's public words, Evergrande "has disregarded its offshore creditors and the legal rights of its creditors."

The group added that it recognizes Evergrande's recent efforts in resuming most of its construction projects, and wants "to be a part of a solution" to help "during these hard times."

Analysts have been long concerned that a collapse by Evergrande could trigger wider risks for China's property market, hurting homeowners and the broader financial system. Real estate and related industries account for as much as 30% of the country's GDP.

Chinese policymakers have also made it clear that protecting domestic homeowners is a priority, as they want to ensure apartments are delivered to customers, many of whom had already paid for properties before they were completed. Last month, Wang Menghui — the Minister of China's Housing and Urban-Rural Development — told the state broadcaster that enduring the delivery of home projects and protecting people's livelihoods were among the government's main goals this year in tackling risks to the real estate sector.

Evergrande has also made deals with domestic creditors to avoid a formal default on its onshore bond. Earlier this month, it obtained investor approval to delay payments on a 4.5 billion yuan ($707 million) bond.
Land battle awaits Indigenous communities over Indonesia capital relocation: NGO

Tens of thousands of Indonesia's indigenous people are at risk of being expelled from their lands to make way for the construction of a new capital on jungle-clad Borneo island, a rights group warned on Friday.

© HANDOUT Tens of thousands of indigenous people are at risk of being expelled from their lands to make way for the construction of a new capital on jungle-clad Borneo island

At least 20,000 people from 21 indigenous groups live in the area designated for the construction of the new capital with laws enabling the move from Jakarta not providing enough protection for the communities' land rights, according to the Indigenous Peoples Alliance of the Archipelago (AMAN).

The group issued its warning after parliament last week approved the capital's relocation from Jakarta, on Java island, to the East Kalimantan province on the Indonesian part of Borneo, which the country shares with Malaysia and Brunei.

"The project will trigger problems such as confiscation of customary lands and criminalisation of indigenous people when they try to defend their rights," Muhammad Arman, AMAM's Policy, Law and Human Rights Advocacy Director, told AFP on Friday.

"They will also lose their traditional jobs such as farming."

Data compiled by AMAN in 2019 shows that at least 13 customary lands, which are administered according to indigenous customs, were located in the new capital area in North Penajam Paser.

Indigenous communities on Borneo are already locked in ongoing conflict with corporations, which have been given plantation contracts on around 30,000 hectares that overlap with customary lands.

"It is like a double run over for indigenous communities. First, they have to fight the business sector and in the future, they will have to face their own government for the new capital project," Arman said.

A recent investigation carried out by rights groups including AMAN uncovered at least 162 permits for mining, plantations, and forestry and coal-based power plants have been granted in the new capital area.

The proposed city will cover around 56,180 hectares (216 square miles). In total, 256,142 hectares have been set aside for the project, with the additional land earmarked for potential future expansion.

Early plans for the new capital depict a utopian design aimed at creating an environmentally friendly "smart" city, but few details have been confirmed.

Plans to begin construction in 2020 were hampered by the onset of the Covid-19 pandemic. The development of the area will take place in several stages until 2045.

Environmentalist critics of the new capital have warned it could damage ecosystems in the region, where mining and palm oil plantations already threaten rainforests that are home to Borneo's endangered species, including orangutans.

hrl/ssy
AFP
NO CONSULTATION
Alberta Health Services reverses decision to close laboratory services in Morinville

Anna Junker 

Alberta’s health authority has reversed a decision to permanently close laboratory services in Morinville, 48 hours after the closure was announced.
© Provided by Edmonton Journal Alberta Health Services.

On Monday, Alberta Health Services (AHS) announced the laboratory and diagnostic imaging services at the Morinville Clinic will permanently close, effective Feb. 1, due to low patient volumes, challenges recruiting staff, and the lack of functioning X-ray equipment at the site.

AHS said residents could instead access these services in nearby communities, with closest locations in St. Albert, 18 kilometres away.

However, on Wednesday evening, AHS reversed the decision and said it will be maintaining laboratory services at the clinic.

“This decision has been made after feedback from the community,” AHS said in a brief statement. “There will be no disruption in service for local residents.”


The statement made no mention of the community’s X-ray machine, which has been non-functional since February 2020.

News of the lab services ending was met with heavy criticism from the community almost immediately. Within two days, an online petition calling for the government to reverse its decision received more than 4,400 signatures.

Residents said there are many seniors in the community who do not have the ability to travel for testing and that wait-times to get treatment in St. Albert were already significant.

Morinville Mayor Simon Boersma told Postmedia that closing the centre would have impacts around the region.

Following news that the government had reversed its decision, Boersma said he was “totally elated.”

“I just want to thank the government for listening to our residents, to the people of our communities. Obviously we are valued and we value the services that they provide at the same time, so I really appreciate that,” he said.

— With files from Ashley Joannou

ajunker@postmedia.com
Nevada geothermal power lawsuit bound for US appeals court

RENO, Nev. (AP) — A federal appeals court will have to decide whether protecting historical tribal lands and a rare toad warrant blocking a major geothermal plant in Nevada as the nation tries to move away from fossil fuels amid a looming climate crisis.

Ormat Technologies says it may abandon the project if a 90-day court order remains in place into March at the high-desert site bordering wetlands fed by hot springs about 100 miles (160 kilometers) east of Reno.

The legal battle is headed to the 9th U.S. Circuit Court of Appeals in San Francisco after a federal judge in Reno denied Ormat's request this week to lift the temporary injunction by Feb. 28.

The Fallon Paiute-Shoshone Tribe and the Center for Biological Diversity won the Jan. 4 court order temporarily banning any activity on what they say are sacred ceremonial grounds and home to the Dixie Valley toad being considered for a U.S. endangered species listing.

They also warn that the project could end up costing ratepayers in Southern California more for electricity.

Reno-based Ormat, one of the five largest U.S. geothermal producers, says it could lose tens of millions of dollars if it can’t begin construction at the site on federal land before March.

“While this is a significant blow to the company, it may sound the death knell for the project,” its lawyers wrote in their request to cut the 90-day order in half.

Ormat said it has invested $68 million over 10 years to start construction early this year and meet a Dec. 31 deadline to begin selling power at rates above current market prices under a 2017 contract.

They told U.S. District Judge Robert C. Jones on Jan. 10 the situation makes it “virtually impossible” to meet the deadline “critical to making the project economically feasible.”

Jones said in his order late Wednesday they should take it up with the appellate court in San Francisco.

“The most efficient and direct path to resolve any party’s concerns with this court’s orders on the temporary restraining order and preliminary injunction is to pursue appeal on an expedited basis,” he wrote.

On Thursday, Ormat's lawyers filed formal notice of their intent to appeal.

It's the latest development in a lawsuit the opponents filed last month seeking to void an environmental review the Bureau of Land Management approved in authorizing the project in November.

The lawsuit says pumping water from beneath the earth in Dixie Meadows will harm the hot springs the tribe considers sacred and could push the toad to the brink of extinction at the only place in the world it's known to exist.

The opponents lawyers also say in their latest court filings that while Ormat may benefit from the energy deal it cut in 2017, electric ratepayers would not.

“Ormat’s interest in profiting from above-market prices — which would likely be borne by consumers in the Los Angeles area over the length of the contract — does not constitute irreparable harm," they wrote.

Ormat argues the ceremonial lands and the toad itself are too far from the plant to be harmed, and that the area already is developed with roads, powerlines, a wellfield and an existing gravel pit bordering the site.

Its lawyers say geothermal development is an especially important step “in the global fight to reduce greenhouse gases and slow climate change.” Unlike wind and solar, geothermal power “contributes to availability of clean energy 24 hours a day, seven days a week," they said.

“The loss of the project would deal a massive blow to the state’s efforts to replace fossil fuel combustion with renewable energy, posing an obstacle to Nevada’s constitutional requirement to procure 50% of the state’s energy from renewable resources by 2030," they wrote.

The tribe and conservationists say any delays in construction are largely of Ormat’s and the government’s “own making.”

Their lawyers say the bureau’s environmental assessment makes clear that from 2011-2016, Ormat failed to collect required surface water monitoring data as it had agreed to under its lease.

They said they alerted Ormat and the bureau in 2017 that they needed to prepare a more detailed environmental impact statement.

“The failure to resolve those issues over the subsequent years does not now create an emergency,” they wrote.

Scott Sonner, The Associated Press
Ottawa, National Centre for Truth and Reconciliation make deal to hand over residential school documents

Peter Zimonjic, Olivia Stefanovich 

The federal government has struck a deal with the National Centre for Truth and Reconciliation that will see it hand over thousands of residential school records, Crown-Indigenous Relations Minister Marc Miller said today.

The memorandum of agreement outlines how and when the federal government will share the documents with the Winnipeg-based National Centre for Truth and Reconciliation (NCTR).

"Canada has a moral obligation to survivors to pursue the truth and to ensure access to documents, school narratives and records, so important to healing, to closure, to education and preservation," Miller said today.

In October, the NCTR said Ottawa had yet to provide key documents detailing the histories of each government-funded, church-run institution that made up the residential school system.

In December, Miller said his government would hand over thousands of documents that the federal government had been criticized for withholding. Today, Miller said the deal will see more than 875,000 documents handed over to the NCRT.

The government said it did not release the documents earlier because of third-party obligations to Catholic entities, including the Sisters of St. Ann, Sisters of Charity of Providence of Western Canada, Sisters of the Presentation and La Corporation Episcopale Catholique Romaine De Prince Albert.

"To me as a survivor we have to acknowledge our shared history, where we've come from, where we're at today and where is it we're going to go into the future," said Garnet Angeconeb, a residential school survivor working with the NCTR.

"This is very important in that the records that will be handed over will be a way to get at the truth, to be able to tell our stories, to be able to validate and acknowledge where we have come from as survivors."
The search for more records

Among the records not yet released are what's known as school narratives — reports compiled by Ottawa outlining an individual institution's history, including its administration, the number of Indigenous children forced to attend it and key events, such as reports of abuse.

The 11 narratives being released to the NCTR are for the following institutions:
Assumption Indian Residential School (IRS)
Fort Vermilion IRS, Grouard IRS
Sturgeon Lake IRS
Kamloops IRS
Kuper Island IRS
St. Mary's IRS
Mistassini Hostels IRS
Kivalliq Hall IRS
Fort George Anglican (St. Phillips) IRS
Norway House (United) IRS

These new documents will be added to the narratives the NCTR has for 125 other residential schools. There are no narratives or surviving documents for the residential schools at Lac La Biche, Lesser Slave Lake, St. Augustine and St Joseph's.

Miller also said that he has told his staff to look for additional documents that can also be shared with the NCTR.

"I have also committed to an extensive internal review of all documents held by my department to identify other possible records we can share while respecting the crucial privacy obligations to survivors as well as other legal processes," Miller said.

"Out of an abundance of caution, I will be issuing a directive to my department to retain any and all documents relating to these types of records."
Honouring commitments

Stephanie Scott, the NCTR's executive director, said that by transferring these record Ottawa will help to piece together a more comprehensive picture of how the residential school system operated.

Demands for the documents grew louder last year after several First Nations announced that ground-penetrating radar had located what are believed to be the remains of hundreds of children in unmarked graves on the sites of former residential schools.

At Thursday's news conference, Scott said she hopes the federal government's spring budget includes funding to allow the NCTR to get a new building and more resources to properly archive and share documents.

Miller said his government made those promises during the 2021 election campaign and it intends to honour them.

"We know that the resources of the NCTR are well insufficient as well as the building in which it is housed, so I just want to reiterate that support," he said.
GM Working on Hydrogen-Powered Generators to Make EV Charging Portable

GM is working with a company called Renewable Innovations to build tools that will bring its Hydrotec hydrogen fuel-cell technology to generators.

The automaker's mobile power generator (MPG) and Empower rapid charger offer ways to charge as many as 100 or more EVs without refilling or tapping into the electrical grid.

With the U.S. hydrogen infrastructure still in its infancy, these systems are not very cost-effective, at least for now, but they're intriguing.

General Motors announced Wednesday that it is planning to bring its Hydrotec hydrogen fuel-cell technology to generators. The company plans to test the waters with a hydrogen-powered mobile power generator, or MPG, and a rapid charger called Empower.

While GM foresees multiple use cases for its Hydrotec-based generators, it is primarily highlighting this technology’s potential to help today’s gas stations transition to electric-vehicle charging stations. That said, GM also sees the versatile MPG playing a military role, with its palletized prototype designed to provide power to temporary camps.

© General Motors GM Palletized Hydrotec-based Hydrogen MPG

Credit the hydrogen generator’s quieter operation and lower heat signature relative to its gas- or diesel-powered counterparts. In theory, these features ought to reduce the chance of enemy combatants coming across makeshift military sites.

Charge It

Yet, it's the MPG's potential role as a mobile fast charger for EVs that interests us most. As described by Charles Freese, GM's executive director of its global fuel-cell business, the MPG provides the ability to add an EV fast charger without the need to connect to the grid or break ground to install fixed charging stations. The Empower rapid charger, meanwhile, takes the basic concept of the MPG and kicks it up a few notches—notably, because of its ability to fast-charge four EVs at the same time. With its internal hydrogen tanks at full capacity, the rapid charger can charge north of 100 cars before needing a refill, according to GM.
Hydrogen Highway

GM intends to offer its hydrogen-powered generators in a variety of outputs, from as few as 60 kilowatts to as much as 600 kW, in order to satisfy varying commercial needs. Even so, the potential success of these emissions-free tools is stifled by the hydrogen infrastructure limitations of the United States. As such, refueling either of them is likely to be costly in many areas of the country

.
© General Motors GM Hydrotec-based Hydrogen MPG

In fact, Freese acknowledged as much during a media call, saying that today's practice of trucking hydrogen is often cost-ineffective due to the vast distances traveled. However, Freese believes hydrogen production will eventually happen closer to points of use, which ought to afford shorter trucking routes and bring down the price.

Nevertheless, GM and its manufacturing partner Renewable Innovations are continuing to develop these hydrogen-powered generators, with the two companies planning to start public demonstrations of the MPG later in the year. Renewable Innovations is also working to place 500 Empower rapid chargers across the U.S. before 2026.

Despite this progress, GM is keeping coy about the potential price of the MPG or Empower generators. Likewise, the company's not quite ready to discuss the possibility of producing a smaller hydrogen generator for personal use. Regardless, it seems it's only a matter of time until gas- and diesel-powered generators are replaced by zero-emission alternatives.
Chevron, Total exit Myanmar over deteriorating human rights

PARIS (AP) — TotalEnergies and Chevron, two of the world's largest energy conglomerates, said Friday they were stopping all operations in Myanmar, citing rampant human rights abuses and deteriorating rule of law since the country's military overthrew the government.

The announcement came just a day after the French company called for international sanctions targeting the oil and gas sector, which remain one of the military government's primary sources of funding.

Total and Chevron had come under increasing pressure over their role in running the offshore Yadana gas field, and Thailand’s PTT Exploration & Production. Total has a majority stake in the venture and runs its daily operations, while MOGE collects revenues on behalf of the government.

“Since the Feb. 1 coup, we have seen the evolution of the country and it is clearly not favorable: The situation of rule of law and human rights in Myanmar has clearly deteriorated over months and despite the civil disobediance movements, the junta has kept power and our analysis is that it's unfortunately for the long term,” Total said.

Since the takeover, the military has cracked down brutally against dissent, abducting young men and boys, killing health care workers and torturing prisoners.

Total said it would withdraw without financial compensation and hand over its interests to the other stakeholders.

About 50% of Myanmar’s foreign currency comes from natural gas revenues, with MOGE expected to earn $1.5 billion from offshore and pipeline projects in 2021-2022, according to a Myanmar government forecast. Prior rounds of U.S. and European sanctions against the Myanmar military have excluded oil and gas.

In a statement released shortly after Total’s announcement, Chevron said it too was planning to leave “in light of circumstances.” The company has condemned the human rights abuses and said it would comply with any international sanctions.

The Myanmar-based human rights group Blood Money Campaign called on the companies to ensure that future payments are made into accounts inaccessible to the military and "stop treating the criminal junta as a legitimate government.”

Human Rights Watch welcomed the decision.

"The next step is to ensure that gas revenues don’t continue to fund those atrocities,” said Ken Roth, executive director of the organization.

___

Associated Press writers Elaine Kurtenbach in Bangkok, Victoria Milko in Jakarta, Indonesia and Kristen Gelineau in Sydney contributed to this report.

Lori Hinnant, The Associated Press