Civil society groups have again called on Japanese investors in Myanmar's Yetagun gas project to responsibly disengage.
On 25 March, it was reported in the media that ENEOS Holdings decided to disengage from the Yetagun gas project in Myanmar. The Japanese government (Ministry of Economy, Trade and Industry) is also reportedly planning a withdrawal. This follows media reports in February that Mitsubishi Corporation decided to leave the project. According to the campaign groups Mekong Watch, Friends of the Earth (FoE) Japan, and Justice for Myanmar (JFM). They say that though these actions are much too late, it is a measure of progress that the Japanese investors are moving toward disengaging from this problematic project. However, they remain concerned that the disengagement will be conducted in a responsible and environmentally safe manner.
Mekong Watch, FoE Japan and JFM, again strongly urge the Japanese government, ENEOS (through its subsidiary JX Nippon Oil & Gas Exploration), and Mitsubishi Corporation to responsibly disengage from the project, after appropriate steps are taken to close the field, which is predicted to be near depletion. This would ensure that future revenues do not flow to the Myanmar military, and that continued human rights and environmental impacts are avoided.
Japan's government and corporations have been deeply involved in the Yetagun field which began production in 2000, and have been complicit in the project’s severe human rights impacts. JX Nippon Oil & Gas Exploration (a wholly-owned subsidiary of ENEOS) and its predecessor acquired rights to three offshore blocks in 1991-92 and developed the Yetagun field. Litigation documents and reports by NGOs have shown that in the late 90s, in order to "secure" the pipeline corridor to transport gas from the fields to Thailand, the Myanmar military was deployed along the pipeline route and subjected local ethnic communities to forced relocation, forced labor, looting, rape, and extrajudicial killings.
The Yetagun project is currently operated by a consortium led by Malaysian state-owned Petronas Carigali, Thailand’s PTTEP, Japan’s Nippon Oil Exploration (Myanmar), with the military-controlled Myanma Oil and Gas Enterprise (MOGE). Nippon Oil Exploration (Myanmar) in turn is jointly held by the Government of Japan through the Minister of Economy, Trade and Industry (50%), JX Nippon Oil & Gas Exploration (40%), and Mitsubishi Corporation (10%, acquired in 2013).
Revenues from gas fields developed since 2000 have generated significant income for the Myanmar military. Since the attempted coup d'etat in 2021, Mekong Watch, FoE Japan and JFM have consistently maintained that doing business with the military-controlled MOGE finances the military. They have been requesting that the Japanese stakeholders, including ENEOS, make sure that revenue from the project does not flow to the military, and that they disclose any payments they have already made or plan to make in connection with the project. However, until now, none of the Japanese investors have taken specific measures or disclosed any information about payments.
In December, leaked documents published by Justice For Myanmar showed that the illegitimate junta leadership expressed strong interest in payments from the Yetagun project owed to MOGE.
JFM claims that whilst it is under the control of the illegal military junta, MOGE cannot take appropriate measures towards closing the gas field in an environmentally responsible way, because it is likely to be costly. So, the Japanese investors who have profited from this project should fulfill their responsibilities in cooperation with other project partners until the gas field is responsibly closed.
JFM will continue to closely monitor the project until responsible disengagement is complete.
Yuka Kiguchi, the Director of Mekong Watch, said, “The Yetagun project has generated significant revenue for the Myanmar military for most of its production period. ENEOS must take responsibility for having benefited the military through payments to MOGE, but this cannot be done by simply withdrawing from the project. ENEOS must disengage with consideration for human rights and the environment based on the ENEOS Group Human Rights Policy.”
Yadanar Maung, a Justice For Myanmar spokesperson, said: “We cautiously welcome ENEOS’ and the Government of Japan’s decision to withdraw and call on them to exit responsibly, ensuring that the illegal junta does not profit from their divestment. In the process of withdrawal, ENEOS and the Government of Japan must engage with the National Unity Government, which is the legitimate government of Myanmar, and stop treating the illegal junta as a government. The junta is a terrorist organistion that uses gas revenues to commit atrocity crimes with total impunity.”
