Total maintains gas production amid Burma turmoil

Total has halted development work at one of its major gas projects offshore Myanmar (Burma) in reaction to February's military takeover in the country but said it will not stop production at its operational Yadana gas field, as pressure mounts on international investors in the country.

Total has suspended tax payments to the military government because of a collapse in the country's banking systems since February's coup and will start contributing equivalent amounts to organisations working for human rights, chief executive Patrick Pouyanne said.

Non-governmental organisations and Myanmar's parallel civilian government have called on Total and other international energy firms with assets in Myanmar to suspend payments to the military government, which has cracked down on protests against the coup that have left over 500 people dead.

Total has not paid any duties or taxes to the military junta since the coup, simply because the banking system is no longer functioning, Pouyanne said. But defaulting on tax payments to the country would be a crime and put the company's local staff at risk of arrest, he warned.

The only option would be for Total to end gas production at Yadana, which supplies around half of the power needs of Myanmar's commercial capital Yangon and exports the bulk of its output to Thailand. Concerns for the safety of Total's staff, and the impact that the supply cuts would have on Myanmar's people, make this unacceptable, the company said.

But Total has halted all new projects and drilling, including at the A-6 gas block in the Bay of Bengal. And the company said it will donate to the equivalent of its monthly taxes to the Myanmar state to unnamed human rights organisations.

By Kevin Foster