Foreign firms seek access to Myanmar oil fields

Just last Sunday when marches led by Buddhist monks drew thousands in Myanmar's biggest cities Indian Oil Minister Murli Deora was in the country's capital for the signing of oil and gas exploration contracts between state-controlled ONGC Videsh Ltd. and Myanmar's military rulers.
The signing ceremony was an example of how important Myanmar's oil and gas resources have become in an energy-hungry world. Even as Myanmar's military junta intensifies its crackdown on pro-democracy protests, oil companies are jostling for access to the country's largely untapped natural gas and oil fields that activists say are funding a repressive regime.
China Myanmar's staunchest diplomatic protector and largest trading partner is particularly keen on investing in the country because of its strategic location for pipelines to feed the Chinese economy's growing thirst for oil and gas.
Companies from South Korea, Thailand and elsewhere also are looking to exploit the energy resources of the desperately poor Southeast Asian country.
France's Total SA and Malaysia's Petroliam Nasional Bhd., or Petronas, currently pump gas from fields off Myanmar's coast through a pipeline to Thailand, which takes 90 percent of Myanmar's gas output, according to Thailand's PTT Exploration & Production PLC.
But investing in Myanmar has brought accusations that petroleum corporations offer economic support to the country's repressive junta, and in some cases are complicit in human rights abuses. This week's bloody clampdowns on protests have escalated the activists' calls for energy companies to pull out of the country.
"They are funding the dictatorship," said Marco Simons, U.S. legal director at EarthRights International, an environmental and human rights group with offices in Thailand and Washington. "The oil and gas companies have been one of the major industries keeping the regime in power."
Demonstrations that started a month ago over a spike in fuel prices have become a broader protest against the military rulers. Ten people were killed in two days of violence this week. Soldiers fired automatic weapons into a crowd of demonstrators in Yangon on Thursday and occupied Buddhist monasteries and cut public Internet access Friday. The moves raised concerns the crackdown on civilians was set to intensify.
Myanmar's proven gas reserves were 19 trillion cubic feet at the end of 2006, according to BP PLC's World Review of Statistics. While that's only about 0.3 percent of the world's total reserves, at current production rates and Thailand's contract price for gas, the deposits are worth almost $2 billion a year in sales over the next 40 years.